The Annual List Price feature provides you the capability to set up a recurring charge with an annual list price in the product catalog, and then sell the charge with a variety of billing periods, for example, monthly, quarterly, every four months, semi-annually, annually, and so on. You can bill subscriptions to generate expected invoices for your end customers.
In some scenarios, you want to price based on subscription term and bill your customers for the total contracted amount. For example, if a subscription term is seven months, you want to configure the charge with the price as $5,000 per seven months, and the billing period as quarterly. Use Specific Months as list price base option in the Annual List Price feature. For more information about Specific Months list price base, see Specific Months List Price.
With the Annual List Price feature, you can set up recurring product rate plan charges, create subscriptions with annual recurring charges, and bill subscriptions can be billed to generate the expected invoices. To start trying the Annual List Price feature, see Get started with Annual List Price.
For each individual charge, the total billed amount for the annual charge across multiple invoices sums to the total annual price.
If multiple charges exist in one subscription, the total annual price amounts of all charges can be evenly or almost evenly distributed across multiple invoices. The annual charges must have aligned full billing periods, with the following criteria:
- All rate plan charges have annual prices.
- All rate plan charges have full billing periods.
- All billing periods have the same start date and end date.
If the annual charges do not have aligned full billing periods, the total annual price amounts of all charges cannot be evenly distributed across multiple invoices.
Prerequisites and activation
To activate Annual List Price settings, perform the following steps :
- In the upper right of the Zuora UI, click your avatar, and then click Billing.
- On the Billing Settings page, click Define Billing Periods.
- On the billing period customization page, select the Year check box in the Customize List Price Base section to activate the Annual List Price settings.
Supported billing periods
With the Annual List Price feature, you can set up a recurring charge with an annual list price by using a newly introduced list price base: Year.
The annual list price base works with the following billing periods:
- Two Years
- Three Years
- Five Years
- Specific Months
A year of 12 months must be evenly divided by the number of specific months, for example, 1, 2, 3, 4, 6, and 12. Alternatively, the number of specific months must be equal to or an integer multiple of 12, for example, 24, 36, 48, and so on.
Supported charge types and charge models
The Year list price base supports the Recurring charge type and the following charge models:
- Flat Fee Pricing
- Per Unit Pricing
- Volume Pricing
- Tiered Pricing
Enhancements specific to Annual List Price
The Zuora UI, API, data source, AQuA, Data Query, and Object Query are enhanced to support specifying the Per Year enum value for the existing List Price Base field on the Product Rate Plan Charge and Rate Plan Charge objects.
The following table lists the detailed changes introduced in the Flexible Billing Attributes feature.
|Product Rate Plan Charge||New enum value Per Year added to the existing List Price Base field||
|Rate Plan Charge||New enum value Per Year added to the existing List Price Base field||
Common use cases
You can walk through common use cases to understand how to use the Annual List Price feature according to business demands.
- Create orders containing multiple subscriptions and multiple charges with annual prices
- Cancel subscriptions with annual prices for multiple charges
- Create orders containing multiple subscriptions and multiple charges with odd terms
- Create orders containing multiple charges with annual prices and unaligned billing periods
Restrictions and limitations
When using the Annual List Price feature, keep the following restrictions and limitations in mind:
- Subscribe and Amend actions are not supported. You must have the Orders or Orders Harmonization feature enabled.
- For the When prorating periods greater than a month, prorate by month first, or by day? billing rule, only the Prorate by Month option is supported. Even if the Prorate by Day option is selected, the Prorate by Month option is forced to be used.