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Create single-year invoice schedules on new subscriptions with the same term

Zuora

Create single-year invoice schedules on new subscriptions with the same term

With the Billing Schedule feature, you can create invoice schedules with one year on new subscriptions created by one order, and how invoices are generated for the subscriptions.

In this use case, four subscriptions are created with the same term of 12 months, and a single-year invoice schedule is created on this subscription. Invoices are generated on self-defined dates through the processing of three invoice schedule items contained in the invoice schedule.

As shown in the following table, four subscriptions are created by creating an order, with the total amount of $70,200.00 and the same term of 12 months. You expect to create a custom invoice schedule to generate three invoices on different dates for the four subscriptions. The first invoice is expected to be generated on 4 February 2023 with the amount of $50,000.00, the second invoice on 1 May 2023 with the amount of $14,000.00, and the third invoice on 16 September 2023 with the amount of $6,200.00.

Subscription number Charge start date Term (Months) Charge number Charge end date Selling price List price base Billing period

S1

01/01/2023

12

C1

12/31/2023

$36,900.00

Per Year

Annual

S2

01/01/2023

12

C2

12/31/2023

$21,500.00

Per Year

Annual

S3

01/01/2023

12

C3

12/31/2023

$11,000.00

Per Year

Annual

S4

01/01/2023

12

C4

12/31/2023

$800.00

Per Year

Annual

To create such a custom invoice schedule and generate invoices as expected, perform the following steps:

  1. Activate the Annual List Price settings.
  2. Create four recurring product rate plan charges with the Flat Fee Pricing charge model.
  3. Create and activate an order with four subscriptions to the four charges, with the total amount of $70,200.00 and the same term of 12 months.
    Subscription number Charge number Amount List price base Billing period
    S1 C1 $36,900.00 Per Year Annual
    S2 C2 $21,500.00 Per Year Annual
    S3 C3 $11,000.00 Per Year Annual
    S4 C4 $800.00 Per Year Annual
  4. On the order details page, create an invoice schedule with three invoice schedule items,
    1. Invoice schedule item 1: Set the invoice date to 02/04/2023 in the On field and billing amount to 50000 in the Bill field.
    2. Invoice schedule item 2: Set the invoice date to 05/01/2023 in the On field and billing amount to 14000 in the Bill field.
    3. Invoice schedule item 3: Set the invoice date to 09/16/2023 in the On field and billing amount to 6200 in the Bill field.

After the invoice schedule is created, the first invoice with invoice number INV001 is automatically generated on 4 February 2023 with the total amount of $50,000.00. The following table lists the amount that is proportionally distributed to each subscription, and the service period of each invoice item.

Invoice item Subscription number Charge number Service start date Service end date Amount Total Amount

Invoice item 1

S1

C1

01/01/2023

09/17/2023

$26,282.05

$50,000.00

Invoice item 2

S2

C2

01/01/2023

09/17/2023

$15,313.39

Invoice item 3

S3

C3

01/01/2023

09/17/2023

$7,834.76

Invoice item 4

S4

C4

01/01/2023

09/17/2023

$569.80

The amount displayed in the Amount column for each invoice item is calculated based on the following formula:

(Billed invoice amount ÷ Total invoice amount) × Selling price

For example, the amount for the first charge line item in the first generated invoice is $26,282.05, which is calculated based on the formula of (50000÷70200)×36900 and rounded based on the default rounding rule specified for the corresponding account.

The service period of each invoice item is determined by the charge amount that is billed in the invoice, calculated based on the following formula:

(Invoice item amount ÷ Selling price) × 12 months 

For example, the proportion of months for the first charge line item in the first generated invoice is calculated based on the formula of (26282.05÷36900)×12 months. The calculation result is 8.547 months, indicating 8 months plus 16.41 days. A portion of the day 17 September 2023 is consumed by the first invoice. Therefore, the service end date is 17 September 2023 for the first charge line item and other items in the same invoice.

On 1 May 2023, the second invoice with invoice number INV002 is generated with the total amount of $14,000.00. The following table lists the amount that is proportionally distributed to each subscription, and the service period of each invoice item.

Invoice item Subscription number Charge number Service start date Service end date Amount Total Amount

Invoice item 1

S1

C1

09/17/2023

11/29/2023

$7,358.98

$14,000.00

Invoice item 2

S2

C2

09/17/2023

11/29/2023

$4,287.75

Invoice item 3

S3

C3

09/17/2023

11/29/2023

$2,193.73

Invoice item 4

S4

C4

09/17/2023

11/29/2023

$159.54

On 16 September 2023, the third invoice with invoice number INV003 is generated with the total amount of $6,200.00. The following table lists the amount that is proportionally distributed to each subscription, and the service period of each invoice item.

Invoice item Subscription number Charge number Service start date Service end date Amount Total Amount

Invoice item 1

S1

C1

11/29/2023

12/31/2023

$3,258.97

$6,200.00

Invoice item 2

S2

C2

11/29/2023

12/31/2023

$1,898.86

Invoice item 3

S3

C3

11/29/2023

12/31/2023

$971.51

Invoice item 4

S4

C4

11/29/2023

12/31/2023

$70.66