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How do I set up concurrent annual subscriptions to bill for the full amount?

Overview

This article explains how you can set up and bill the full amount on two annual subscriptions, for the same account, that have separate start and billing dates.

Set Up the Product Catalog

The first and most important step is to set up your product catalog's rate plan charges to bill the charge only when the full amount is ready to be billed. To set up your product catalog rate plan charge, go to Z-Billing > Product Catalog, then select an existing product or create a new one. 

In the Rate Plans section, edit or add a Recurring or Usage charge, and then edit the Billing Day to select Charge Trigger Day.

 Charge_Trigger_Day.jpg

Set Up the Subscriptions

With Evergreen subscriptions, the subscription continues to bill until the customer notifies you of cancellation. Unlike Termed subscriptions, Evergreen subscriptions do not have contract term end dates. Evergreen subscriptions only have a term start date, and the term is infinite until it is canceled.

Evergreen subscriptions support the billing of concurrent subscriptions for the full charge amount better than termed subscriptions because evergreen subscriptions do not have a term end date that can potentially prorate the billing period of the charge. 

For example, if you create a subscription with the following settings: 

  • First Subscription Term: January 1, 2011 through December 31, 2011
  • Subscription Activation and Charge Trigger Date is February 1, 2011
  • Product Rate Plan Charge: Billing Period is Annual, Billing Day is Charge Trigger Day

The first invoice will be prorated from February 1, 2011 through December 31, 2011. The charge is only billed for 11 months because the subscription term has ended and has not yet been renewed. Therefore, the charge cannot bill for the full 12-month (annual) period. 

Step 1: Select the Evergreen Term Setting

In your subscription, under Basic Information > Term Setting, select Evergreen.

Evergreen.jpg

Step 2: Set the Term Start Date

Next, enter a Term Start Date (located under Additional Fields). Or you can leave this blank and have the Term Start Date default to the subscription contract effective date (which you can set when saving the subscription). 

Screen shot 2012-03-16 at 3.09.46 PM.png

Example

A sample account was set up with two concurrent annual subscriptions: One starting on March 16, 2012, and the other on March 26, 2012.

  • Subscription 1: Term Start Date is March 16, 2012. 

ConcurrentNum1TermStart.jpg

 

  • Subscription 2: Term Start Date is March 26, 2012. 

ConcurrentNum2TermStart.jpg

  • Bill Cycle Day on the Customer Account: After setting up Subscription 1, the Account's billing day was auto-set to 16th of the month:

BillCycleDay.jpg

Sample Invoices

The following are sample invoices for subscription 1 and 2, for the first and second years of the subscriptions. 

Subscription 1: Year 1 Invoice

InvoiceSub1Yr1.jpg

Subscription 2: Year 1 Invoice

InvoiceSub2Yr1.jpg

Subscription 1: Year 2 Invoice

InvoiceSub1Yr2.jpg

Subscription 2: Year 2 Invoice

InvoiceSub2Yr2.jpg

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