Create product rate plan charges

Create a product rate plan charge

To create a product rate plan charge, complete the following steps:

1. View the rate plan that you want to edit.
2. Depending on the type of the charges, click add new under the One-Time Charges, Recurring Charges/Period, or Usage Charges/UOM section.
3. In the Name section, specify a name for the charge and optionally provide a description.
4. In the Charge Amount section, select the type of charge model. The charge model determines how the charge is calculated. For more information about supported charge models, see Charge Models.
5. Complete the fields to create the new charge.
6. Click save.

The following sections provide three examples of setting up rate plan charges using different types of charges and charge models.

Setup fee (one-time flat fee)

In a flat-fee charge model, the amount to charge is a fixed number applied to a one-time or recurring charge.

To create a one-time, flat fee charge, complete the following steps:

1. View the rate plan that you want to edit.
2. Under One-Time Charges, click add new.
3. Specify the following information:
   • Charge Name: Enter a name for the charge. For example, "Setup Fee."
   • Description: Enter a description for the charge. This field is optional.
   • Revenue Recognition Code: This field is displayed if your company has enabled revenue recognition fields. Select a revenue recognition code from the list.
   • Revenue Recognition Trigger: This field is displayed if your company has enabled revenue recognition fields. Select one of the revenue recognition trigger conditions.
   • Charge Model: Select Flat Fee Pricing from the list.
   • List Price: Enter a price for the set-up fee. You can change the list price when you add this charge to a subscription
   • Trigger Condition: Select a trigger condition from the list. The trigger condition determines when the charge will be applied.
4. (Optional): Select an accounting code for the product from the list:
   • If you are using Zuora Finance, see Map accounting codes for more information about using accounting codes in Zuora.
5. (Optional): If you have enabled Zuora Billing - Revenue Integration, you can select the following checkboxes to exclude non-revenue related data from syncing to Revenue:
   • Exclude Item Booking from Revenue: Select this checkbox to exclude non-revenue related rate plan charges and order line items from syncing to Revenue.
   • Exclude Item Billing from Revenue: Select this checkbox to exclude non-revenue related invoice items, invoice item adjustments, credit memo items, and debit memo items from syncing to Revenue.
6. Click save to save your changes to the rate plan.

Seat licenses (recurring, per unit)

Recurring charges can be billed on a monthly, quarterly, semi-annual, or annual basis. This example describes how to set up a monthly recurring charge using the per unit pricing charge model. In this type of charge model, the total amount to charge will be equal to the per unit price multiplied by the total number of units (quantity).

To set up a recurring per-unit charge, complete the following steps:

1. Navigate to the rate plan that you want to edit.
2. Within the rate plan, under Recurring Charges/Period, click add new.
3. Enter the following information to create a new recurring, per-unit charge:
   • Charge Name: Enter a name for the charge. For example, you might call this "Ultimately Screen Capture Monthly."
   • Description: Enter a description for the charge. This field is optional
   • Revenue Recognition Code: This field is displayed if your company has enabled revenue recognition fields. Select a revenue recognition code from the list.
   • Revenue Recognition Trigger: This field is displayed if your company has enabled revenue recognition fields. Select a revenue recognition trigger condition.
   • Charge Model: Select Flat Fee Pricing from the list.
   • List Price: Enter the price for the recurring charge. You can change the list price later, if necessary, when you add this charge to a subscription.
   • List Price Base: Choose Billing Period, Month, and Week.
     • The Month option sets the list price based on a month charge. For example, if the list price is $100, the invoice for a 12-month period is $1200.
     • The Billing Period option sets the list price based on the billing period. For example, if the list price is $1200, the invoice for a 12-month period is $1200. 
     • The Week option sets the list price based on a week charge. For example, if the list price is $100, the invoice for a 12-week period is $1200.

       The Week option is in Limited Availability. If you wish to have access to this enhancement, submit a request at Zuora Global Support. We can help you evaluate if early adoption is right for you.

   • Trigger Condition: Select a trigger condition from the list. The trigger condition determines when the charge will be applied.
   • End Date: Select an end date option from the list. The end date option determines when the charge ends after the charge starts billing. 
   • Billing Period: The frequency with which the charge repeats. You can configure these options under Define Billing Periods. 

     The Subscription Term option allows you to choose the entire subscription term as the billing period. The List Price Base must set to Month or Week.  See Recurring Charges for Different Initial and Renewal Subscriptions for more information.

   • Billing Day: Determines when the specific charge is billed. You can configure these options under Define Billing Periods.

     Selecting the Default from Customer Account option overrides the bill cycle day specified for the customer. For example, if you select the fifth of the month for the billing date, this charge will be billed every month on the fifth of the month, for all customers who have purchased this product. See Product Catalog Dates: Product Rate Plan Charge Date Attributes for more information about these settings. 

   • Billing Timing: Choose In Advance or In Arrears.
   • Billing Period Alignment: Select a value from the list.
4. (Optional): Select an accounting code for the product from the list. 
5. (Optional): If you have enabled Zuora Billing - Revenue Integration, you can select the following checkboxes to exclude non-revenue related data from syncing to Revenue:
   • Exclude Item Booking from Revenue: Select this checkbox to exclude non-revenue related rate plan charges and order line items from syncing to Revenue.
   • Exclude Item Billing from Revenue: Select this checkbox to exclude non-revenue related invoice items, invoice item adjustments, credit memo items, and debit memo items from syncing to Revenue.
6. Click save to save your changes to the rate plan.

Storage (usage, tiered with overage)

Usage-based charges are used to track resources that are metered and charged based on an amount consumed. In this example, we set up a charge for file storage with a minimum included storage units of 500 gigabytes (this is the amount of the included units), as well as an overage price for any storage used beyond the included units. The price for storage is based on tiered pricing in which charges vary progressively as the volume of storage units purchased increases. In this example, the final tier is considered overage.