One-Time subscriptions

Introduction

This article provides a comprehensive guide to One-Time Subscriptions on the AppXite Platform. Understanding how one-time subscriptions work helps Seller Admins and Platform Users manage billing, invoicing, and asset tracking effectively.

In this article:

• Key characteristics
• Billing process
• Special case: Reservations
• Managing one-time subscriptions
• Examples of one-time subscription scenarios
• Comparison with other subscription types

One-Time Subscriptions represent purchases that are billed once rather than recurring on a regular schedule. This article explains how one-time subscriptions differ from recurring subscriptions, when one-time subscription charges appear on invoices, how to manage and track one-time subscriptions, and special types of one-time subscriptions like reservations.

Key characteristics

Billing model

One-time subscriptions have the following billing characteristics:

• Single payment: Charged only once, not on a recurring basis
• Billed after purchase: Appears on the next invoice after purchase date
• No renewal: Does not automatically renew
• Charge type: Always appears with the One-Time Fee charge type

Common examples

One-time subscriptions typically include perpetual software licenses, hardware purchases, setup fees, implementation services, training credits, Reserved Instances purchased with upfront payment, and credit purchases for consumption services.

Billing process

When charges appear

One-time subscriptions are invoiced on the next billing date after purchase with the charge type One-Time Fee.

For example:

1. Purchase made on March 15
2. Next Billing Cycle on April 1
3. One-Time Fee appears on the April 1 invoice

Invoice presentation

On an Invoice, one-time subscriptions appear as:

Subscription            | Quantity | Charge Type  | Amount
------------------------|----------|--------------|-------
Visio Professional 2021 | 5        | One-Time Fee | $1,495.00

No prorations

Unlike License-Based Subscriptions, one-time subscriptions do not involve prorated charges. The full amount is charged regardless of when during the billing cycle the purchase occurs.

Special case: Reservations

What are reservations?

Reservations are commitments to use specific cloud resources for a defined period, typically 1 or 3 years, in exchange for discounted pricing.

Payment options

Reservations can be purchased with:

• Upfront payment: Treated as a one-time subscription
• Monthly payments: Treated as a license-based subscription with a Commitment Period

Azure Reserved Instances example

For Azure Reserved Instances with upfront payment:

1. Customer commits to use specific VM sizes for 1 year
2. Full payment is made upfront
3. Appears as a One-Time Fee on the next invoice
4. Provides discounted rates compared to pay-as-you-go pricing

Reservation benefits

Reservations provide cost savings, typically 20 to 60 percent depending on service and term, capacity priority during shortages, and simplified budgeting with predictable costs.

Managing one-time subscriptions

Subscription status

One-time subscriptions typically show these statuses:

• Active: After purchase, during the entitlement period
• Expired: After the entitlement period ends, if applicable
• Canceled: If returned or canceled before fulfillment

Returns and refunds

Return policies for one-time subscriptions vary by Product:

• Software: May have limited return windows, typically 30 days
• Hardware: Subject to vendor return policies
• Reservations: May have exchange options but limited refund options

When a one-time subscription is refunded, a credit appears on the next invoice as a Correction with a negative amount.

Reporting and tracking

Asset management

One-time subscriptions often represent assets that should be tracked in inventory systems. The AppXite Platform provides asset lists with purchase dates and costs, License keys and activation information, and warranty or support period tracking.

Financial reporting

For accounting purposes, one-time subscriptions are typically recorded as capital expenditures, also known as CAPEX, rather than operating expenses, also known as OPEX. They may be subject to depreciation over time and are recorded in the period when invoiced.

Examples of one-time subscription scenarios

Example 1: Software license purchase

Scenario:

• Customer purchases 10 licenses of Visio Professional 2021
• Purchase date: March 15
• License cost: $299 per license
• Next billing date: April 1

Invoice on April 1:

Subscription            | Quantity | Charge Type  | Amount
------------------------|----------|------------- |-------
Visio Professional 2021 | 10       | One-Time Fee | $2,990.00

Example 2: Azure Reserved Instance

Scenario:

• Customer purchases a 1-year reserved instance for D2v3 VMs
• Purchase date: June 10
• Upfront payment option selected
• Reserved instance cost: $1,752
• Next billing date: July 1

Invoice on July 1:

Subscription             | Quantity | Charge Type  | Amount
-------------------------|----------|--------------|-------
Azure RI - D2v3 (1-Year) | 1        | One-Time Fee | $1,752.00

Example 3: Hardware with implementation service

Scenario:

• Customer purchases hardware with implementation services
• Purchase date: October 5
• Hardware cost: $5,000
• Implementation service: $1,500
• Next billing date: November 1

Invoice on November 1:

Subscription           | Quantity | Charge Type  | Amount
-----------------------|----------|--------------|-------
Server Hardware        | 1        | One-Time Fee | $5,000.00
Implementation Service | 1        | One-Time Fee | $1,500.00

Comparison with other subscription types

Summary

One-Time Subscriptions represent single purchases that are billed once rather than recurring. They are charged on the next billing date after purchase with the One-Time Fee charge type and do not involve prorated charges. Common examples include perpetual software licenses, hardware purchases, and Reserved Instances with upfront payment. When a one-time subscription is refunded, a credit appears as a Correction with a negative amount. Understanding one-time subscriptions helps manage billing expectations and asset tracking effectively.

Related Articles

• Billing Concepts Overview
• Subscription Types Explained
• Charge Types
• Navigating the Invoices