How to configure Billing rules in the Product Management Hub? New UI

Introduction

This article guides Product Managers through configuring billing rules in the Product Management Hub.  Billing rules can be applied per specific Product Offers or the Vendors can set custom billing rules for multiple or all Offers. Billing rules determine how offers are priced, billed, and invoiced, allowing you to apply custom logic that aligns with your business practices and customer agreements. You'll learn how to set billing dates, proration logic, rounding parameters, usage billing methods, and component-level overrides to create flexible and accurate billing configurations for your products.

In this article:

• Understanding billing rules
• Business benefits of billing rules configuration
• Access billing rules configuration
• Configure vendor-level custom billing rules
• Configure billing date
• Set proration rules
• Define rounding parameters
• Configure usage billing rules
• Set offer component billing rules
• Save and finalize configuration

Understanding billing rules

Billing rules are a comprehensive set of configurations that control how subscription-based products are billed throughout their lifecycle. These rules determine critical aspects of the billing process, including when charges occur, how mid-cycle changes are calculated, the precision of monetary calculations, and how usage is measured and billed.

What are billing rules?

Billing rules consist of five key components:

1. Billing Date — Defines the anchor point for recurring subscription charges, determining whether billing aligns with invoice cycles or the original purchase date.
2. Proration Rules — Control how partial billing periods are calculated when subscriptions change mid-cycle, such as when customers add or remove licenses or cancel services.
3. Rounding — Specifies the decimal precision used in price calculations and displayed amounts, ensuring consistency and compliance with financial requirements.
4. Usage Billing Rules — Determine how consumption-based charges are aggregated and calculated for usage-based offers.
5. Offer Components — Allow granular control over billing behavior for individual offer components when products consist of multiple billable elements.

Why billing rules matter

Proper billing rules configuration ensures accurate invoicing, maintains customer trust, supports diverse pricing models, and helps you comply with financial regulations. Without well-defined billing rules, you may encounter billing discrepancies, customer disputes, revenue recognition issues, and operational inefficiencies.

Business benefits of billing rules configuration

Configuring billing rules provides significant advantages for vendors, partners, and end customers throughout the subscription lifecycle.

Benefits for vendors and partners

Flexible pricing strategies — Support multiple billing models including annual, monthly, and usage-based pricing to match your go-to-market strategy and customer preferences.

Accurate revenue recognition — Ensure proper revenue allocation through precise proration calculations, supporting compliance with accounting standards and financial reporting requirements.

Reduced billing disputes — Clear, consistent billing logic minimizes customer confusion and reduces support tickets related to unexpected charges or refunds.

Competitive differentiation — Offer customer-friendly billing terms such as immediate proration for upgrades or flexible cancellation policies that distinguish your offers in the marketplace.

Operational efficiency — Automated billing rule application eliminates manual calculations and reduces the risk of human error in invoice generation.

Scalability — Establish vendor-level customs that can be applied across multiple offers, saving time when launching new products while maintaining consistency.

Impact on end customers

Transparent billing — Customers receive accurate charges that reflect their actual usage and subscription changes, building trust and satisfaction.

Fair proration — Mid-cycle upgrades and downgrades are calculated proportionally, ensuring customers only pay for what they use during each billing period.

Predictable costs — Consistent rounding and billing date alignment help customers forecast expenses and manage budgets more effectively.

Flexible subscription management — Customers can confidently adjust their subscriptions knowing exactly how changes will affect their next invoice.

Clear invoices — Component-level billing rules enable detailed invoice line items that help customers understand exactly what they're paying for.

Business use cases

The billing rules configuration supports various business scenarios:

Enterprise customers — Configure proration to charge immediately for mid-month license additions while deferring decreases until the next billing cycle, optimizing cash flow.

Usage-based pricing — Apply total usage billing for utilities-style consumption or peak usage billing for capacity-based pricing models.

Multi-component offers — Set different billing rules for each component in a bundle, such as prorating software licenses while billing support services in full-month increments.

Trial and onboarding — Use purchase date billing to provide consistent billing cycles regardless of when customers sign up during the month.

Global operations — Configure rounding parameters to match local currency requirements and financial regulations in different markets.

Access billing rules configuration

Custom Billing Rules are automatically available for the configuration when Product Manager create a new Offer in Product Management Hub.

To access billing rules configuration:

1. Navigate to the Offers page in the Product Management Hub.
   
2. Locate your offer in the list and click the Edit Billing Rules button on the right side of the offer row.
   

Select configuration source

At the top of the Billing Rules page, choose how you want to configure billing rules for this Offer:

Set custom billing rules (selected by default) — Define specific billing rules tailored to this offer's requirements. Use this option when the offer needs unique billing behavior.

Use default billing rules from vendor — Apply your vendor-level default configuration saved from a previous offer that was saved as default vendor configuration. This option streamlines configuration for multiple similar offers. This option is disabled for your first offer, with an explanation displayed indicating that no vendor defaults exist yet.

You can also toggle Save as default vendor program level configuration to save your current settings as the custom template for future offers. When enabled, your selections across all billing rule tabs will be stored and available for reuse, ensuring consistency across your product portfolio.

Both options for custom billing rules are explained in details below.

Configure vendor-level custom billing rules

Vendor-level custom billing rules allow you to save a billing configuration as a reusable template for future Offers, ensuring consistency across your product portfolio and reducing configuration time.

Understanding vendor customs

Vendor customs are saved billing rule settings that can be automatically applied to new offers. Instead of configuring billing rules manually for each offer, you can select your saved customs and apply them instantly.

When to use vendor customs

Use vendor-level customs when:

• You manage multiple Offers with similar billing requirements
• You want consistent billing policies across products
• You need to rapidly deploy new offers while maintaining standardization

Creating vendor customs

When configuring billing rules for any offer:

1. Configure all required billing rule tabs (Billing Date, Proration Rules, Rounding, Usage Billing Rules).
2. At the top of the page, toggle Save as default vendor program level configuration to ON.
   
3. Complete your configuration and click Save & Continue.
   

A tooltip explains:

Your configuration is now saved and available for future offers.

Applying vendor customs to new Offers

When configuring a new offer after customs have been saved:

1. Navigate to the Billing Rules page.
2. Select the radio button Use default billing rules from vendor.
   
3. All tabs except Billing Date automatically populate with your saved configuration. Configure Billing Date.
4. Review and modify settings if needed for this specific offer.
5. Click Save & Continue.
   

For your first offer: The vendor defaults option is disabled with the message: 

Updating vendor customs

To update your vendor customs:

1. Configure billing rules in any offer (new or unpublished) with your desired new settings.
2. Toggle Save as default vendor program level configuration to ON.
   
3. Click Save & Continue.
   

A "Billing rules saved" message confirms the update. Updated customs are immediately available for all new offers. Existing offers remain unchanged.

Configure billing date

The Billing Date setting determines when the subscription Billing Cycle is anchored, establishing the recurring schedule for generating charges and Invoices. This fundamental setting affects when Customers are billed and how billing periods are calculated throughout the Subscription lifecycle. This setting is required and cannot be changed after the Offer is published.

Understanding billing date options

The billing date establishes the reference point for calculating recurring charges. Your selection determines whether billing aligns with your internal invoice generation schedule or follows the customer's purchase anniversary date. This decision impacts cash flow timing, invoice consolidation opportunities, and customer billing predictability.

Select billing date option

Choose one of the following three options:

Invoice date — Subscriptions are billed based on your invoice cycle, aligning all subscription charges with your organization's invoice generation schedule. For example, an invoice with a September 1st cycle will include subscription purchases made in August. The subscription start date aligns with the invoice cycle and begins on the first day of the month.

This option is ideal when you want to consolidate all customer billing into a single monthly invoice cycle, simplifying accounting and improving operational efficiency. Customers who purchase mid-month will see their first invoice calculated from the purchase date through the end of the invoice period, with subsequent invoices covering full months.

Purchase date — Subscriptions are billed on the same calendar day each month as the original purchase date, creating an anniversary-based billing cycle. For example, a subscription purchased on the 15th will be billed on the 15th of each subsequent month.

This option provides customers with consistent billing dates that align with their purchase decision, making budget planning and expense tracking more intuitive. Each customer may have a different billing date based on when they purchased the subscription.

Purchase date (excluding dates 29, 30, 31) — Similar to the purchase date option, but addresses the variable number of days in different months. If you purchase on the 29th, 30th, or 31st, you'll be billed on the 28th of any month that doesn't have that date (such as February or months with only 30 days).

This option prevents billing inconsistencies in shorter months while maintaining the anniversary billing concept. It's particularly useful for financial systems that require consistent day-of-month billing for automated processing.

Billing date behavior

The selected option applies across the following scenarios:

• Initial purchase — Determines when the first billing cycle begins and how the first invoice is calculated
• Recurring charges — Establishes the schedule for all subsequent billing periods
• Proration calculations — Provides the reference point for calculating partial period charges
• Renewal timing — Defines when annual or multi-year subscriptions renew

Once saved, your selection appears as a radio button selection on the Billing Date tab and cannot be modified after the offer is published.

Set proration rules

Proration Rules determine how changes in subscription quantity or cancellations are financially handled during a billing cycle. Proration calculates partial charges or refunds based on the portion of the billing period affected by the change, ensuring customers pay only for the time they actually used the service at each quantity level.

Understanding proration

Proration is the process of calculating proportional charges when a subscription changes mid-cycle. For example, if a customer with a monthly subscription adds five licenses halfway through the month, proration calculates the charge for those five licenses for only the remaining half of the month, rather than charging for the full month.

Without proration, customers would be overcharged for partial periods, leading to billing disputes and dissatisfaction. Conversely, proration can also calculate refunds when quantities decrease or subscriptions are cancelled before the end of a billing period.

How proration impacts your business

Your proration strategy directly affects customer satisfaction, cash flow, and operational complexity:

Customer-friendly policies — Immediate proration for all changes demonstrates fair billing practices and builds customer trust, though it may increase refund processing.

Cash flow optimization — Deferring credits for decreases until the next billing cycle improves working capital while still applying immediate charges for upgrades.

Simplified accounting — Using highest quantity billing eliminates the need to track mid-cycle changes, reducing administrative overhead at the cost of potentially higher customer charges.

Competitive positioning — Your proration policy can be a differentiator in the market, with more flexible policies attracting customers who value billing transparency.

This setting is required and cannot be changed after the offer is published.

Select proration calculation logic

Choose one of the following five proration methods:

Prorate charges

Proration applies to all subscription changes: quantity adjustments (both increases and decreases), cancellations, and other modifications. This is the most customer-friendly option, providing immediate financial adjustments for any subscription change.

When to use this option: Select this method when you want to provide maximum billing flexibility and transparency to customers, particularly in enterprise scenarios where frequent adjustments are expected. This method is ideal for competitive markets where fair billing practices are a key differentiator.

Example for a $100/month subscription:

• If quantity decreased by 1 on the 10th: Refund: $66.67 (20 days / 30 days × $100)
• If quantity increased by 1 on the 20th: Additional charge: $33.33 (10 / 30 × $100)
• If cancelled on the 10th: Refund: $66.67 (20 / 30 × $100)

Click See calculation example to view detailed calculations for this option.

Prorate quantity increase / Don't prorate quantity decrease

Only quantity increases and cancellations are pro-rated immediately, with charges applied for the partial period. Quantity decreases take effect at the next billing cycle, meaning customers continue to be charged for the higher quantity until the end of the current billing period.

When to use this option: Select this method when you want to balance customer flexibility with cash flow optimization. This approach encourages customers to carefully consider downgrades while still allowing immediate upgrades. It's particularly effective for services where you want to discourage frequent quantity fluctuations while maintaining a positive upgrade experience.

Example for a $100/month subscription:

• If quantity decreased by 1 on the 10th: No refund is provided; the decrease takes effect at the next billing cycle
• If quantity increased by 1 on the 20th: Additional charge: $33.33 (10 / 30 × $100)

Click See calculation example to view detailed calculations for this option.

Prorate quantity changes / Don't prorate cancellation

Quantity increases and decreases are pro-rated immediately, providing responsive billing for subscription adjustments. However, cancellations take effect at the next billing cycle, meaning customers continue to be charged through the end of the current period even if they cancel early.

When to use this option: Select this method when you want to encourage longer commitment periods while still providing flexibility for quantity adjustments. This is effective for subscription services with high setup costs or where you've allocated resources for the full billing period. It ensures you recover costs for the entire period while remaining flexible on quantity changes.

Example for a $100/month subscription:

• If quantity decreased by 1 on the 10th: Refund: $66.67 (20 / 30 × $100)
• If quantity increased by 1 on the 20th: Additional charge: $33.33 (10 / 30 × $100)
• If cancelled on the 10th: No refund is provided; the subscription remains active until the end of the billing cycle

Click See calculation example to view detailed calculations for this option.

Prorate quantity increase / Don't prorate quantity decrease and cancellation

Only quantity increases are pro-rated immediately, with charges applied for the partial period. Quantity decreases and cancellations both take effect at the next billing cycle, maximizing revenue retention while maintaining a positive upgrade experience.

When to use this option: Select this method when cash flow stability is critical and you want to minimize refund processing while still encouraging customers to expand their usage. This option works well for services with committed resources where you need to maintain revenue through the billing period regardless of customer-initiated reductions.

Example for a $100/month subscription:

• If quantity decreased by 1 on the 10th: No refund is provided; the decrease takes effect at the next billing cycle
• If quantity increased by 1 on the 20th: Additional charge: $33.33 (10 / 30 × $100)
• If cancelled on the 10th: No refund is provided; the subscription remains active until the end of the billing cycle

Click See calculation example to view detailed calculations for this option.

Use highest quantity

Billing charges use the peak quantity reached during each cycle, no matter when the increase happened. This method eliminates all proration calculations by simply billing for the maximum quantity at any point during the billing period. For example, upgrading from 5 to 10 units on the final day of the month results in charges for 10 units for the entire month.

When to use this option: Select this method when you want to simplify billing administration and encourage customers to carefully plan their capacity needs. This approach is common in infrastructure and capacity-based pricing models where peak usage drives cost. It eliminates the complexity of tracking timing for changes, though it may result in higher charges for customers who make late-cycle increases.

Example for a $100/month per unit subscription:

• If started with 5 units: Monthly charge: $500 (5 units × $100)
• If increased to 8 units on the 15th: Charge will be $800 for the entire month (not prorated)
• If decreased to 3 units on the 25th: Charge remains $800 for the month (highest quantity used)

Click See calculation example for any option to view detailed proration calculations specific to that method.

Proration calculation method

All proration calculations use a daily rate methodology:

Daily rate = Monthly charge ÷ Days in month

Prorated amount = Daily rate × Days affected by change

For example, in a 30-day month with a $100 monthly charge:

• Daily rate = $100 ÷ 30 = $3.33
• 10 days remaining = $3.33 × 10 = $33.30

This ensures fair and transparent calculations regardless of the month's length.

Define rounding parameters

Rounding controls the number of decimal places used for billing calculations and the amounts displayed on invoices. Proper rounding configuration ensures compliance with financial regulations, maintains consistency across invoices, and prevents cumulative rounding errors that could impact revenue or customer satisfaction.

Understanding rounding in billing

Rounding is essential because subscription pricing often involves division operations that produce long decimal sequences. For example, prorating a $100 monthly subscription for 10 days in a 30-day month yields $33.333333... The rounding parameter determines whether this appears as $33, $33.3, $33.33, or $33.333 on customer invoices.

Why rounding matters

Financial accuracy — Proper rounding prevents cumulative errors across thousands of transactions that could result in revenue discrepancies or accounting reconciliation issues.

Regulatory compliance — Different markets and currencies have specific requirements for decimal precision. For example, some currencies don't use decimal subdivisions, while others require specific rounding to the nearest 0.05.

Customer clarity — Consistent rounding makes invoices easier to understand and builds confidence in your billing accuracy.

System compatibility — Rounding parameters ensure compatibility with payment processors, accounting systems, and financial reporting tools that may have specific precision requirements.

This setting is required and can be edited even after the offer is published.

Configure rounding digits

Set the following two parameters to control decimal precision:

Unit price — Enter a whole number from 0 to 8 (default: 2). This determines the decimal places for individual unit prices displayed on invoices and quotes. For example:

• 0 digits rounds to the nearest whole number: $33
• 2 digits rounds to the nearest cent: $33.33
• 4 digits rounds to four decimal places: $33.3333

Use higher precision (4-8 digits) when dealing with very low per-unit prices or when downstream systems require extended precision for aggregation.

Total price — Enter a whole number from 0 to 8 (default: 2). This determines the decimal places for total billing amounts on invoices. This setting typically matches your currency's standard subdivision (2 digits for USD, EUR, etc.).

An inline example panel dynamically displays how your rounding settings affect calculations, updating in real-time as you adjust the values. This preview helps you verify the configuration before saving.

Rounding methodology

The system uses standard mathematical rounding (round half up):

• Values ending in .5 or higher round up
• Values ending in .4999... or lower round down

For example, with 2 decimal places:

• $33.334 rounds to $33.33
• $33.335 rounds to $33.34

Validation requirements

The rounding configuration includes the following validations:

• Both fields are required and cannot be left blank
• Only accept whole numbers from 0 to 8
• Non-numeric characters, negative numbers, and values above 8 are rejected
• Invalid entries display inline error messages
• The Save & Continue button remains disabled until all values are valid
  

Click See calculation example to view how rounding affects billing totals with your specific configuration.

Best practices for rounding configuration

Match currency standards — Use 2 digits for most currencies, 0 digits for currencies without subdivisions (like JPY), and 3 digits for currencies with thousandths subdivisions.

Consider aggregation — If customers have many line items, higher unit price precision can prevent cumulative rounding errors in the total.

Maintain consistency — Use the same rounding configuration across related offers to ensure consistent customer experience.

Test edge cases — Verify how your rounding handles small quantities and low unit prices to avoid unexpected results.

Configure usage billing rules

Usage Billing Rules define how consumption-based charges are aggregated and calculated within a billing period. Usage-based billing charges customers based on their actual consumption of a service, such as compute hours, storage gigabytes, API calls, or data transfer volumes, rather than a fixed subscription fee.

Understanding usage billing

Usage billing differs fundamentally from license-based subscription billing. Instead of charging a fixed amount per billing cycle, usage billing measures actual consumption and applies rates to that consumption. This creates a variable billing amount that reflects the customer's actual usage patterns.

How usage billing works

Usage billing follows a three-step process:

Measurement — The system tracks consumption metrics throughout the billing period, recording each usage event with timestamps and quantities.

Aggregation — At the end of the billing period, the system aggregates usage data according to the configured billing rule (total or peak).

Calculation — The aggregated usage is multiplied by the unit rate to determine the charges for that billing period.

Why usage billing rules matter

Pricing model flexibility — Support various consumption-based pricing models including pay-as-you-go, tiered usage, and capacity-based pricing.

Customer value alignment — Customers pay proportionally to the value they receive, making your service accessible to both small and large users.

Revenue optimization — Capture revenue from actual usage patterns rather than arbitrary license counts, potentially increasing revenue from high-usage customers.

Competitive positioning — Usage-based pricing can be more attractive than fixed subscriptions for customers with variable or unpredictable usage patterns.

This setting is required for usage-based offers.

Select usage aggregation method

Choose one of the following two options:

Total usage — Charges are based on the sum of all usage during the billing period. This method adds up every unit of consumption throughout the entire period to calculate the final charge.

When to use this option: Select this method for consumption-based services where customers should pay for cumulative usage, such as data transfer, API calls, transaction processing, or compute hours. This is the most common usage billing method and provides a direct correlation between consumption and cost.

Example: If a customer transfers 100 GB on day 1, 200 GB on day 15, and 50 GB on day 30, they are billed for 350 GB total (100 + 200 + 50 = 350 GB).

Peak usage — Charges are based on the highest usage recorded during the billing period. This method identifies the maximum consumption point within the period and bills based on that peak, regardless of usage at other times.

When to use this option: Select this method for capacity-based services where the peak demand drives infrastructure costs, such as bandwidth capacity, concurrent users, storage capacity, or compute instances. This method is appropriate when your costs are driven by the maximum capacity needed to serve the customer, even if they don't use that capacity consistently.

Example: If a customer uses 100 GB on day 1, 200 GB on day 15, and 50 GB on day 30, they are billed for 200 GB (the peak usage reached during the period).

Usage billing example

For a usage-based subscription at $0.10 per unit:

Total usage scenario:

• Day 1: Customer uses 100 units
• Day 15: Customer uses 200 units
• Day 30: Customer uses 50 units
• Total usage billing: 100 + 200 + 50 = 350 units × $0.10 = $35.00

Peak usage scenario:

• Day 1: Customer uses 100 units
• Day 15: Customer uses 200 units (peak)
• Day 30: Customer uses 50 units
• Peak usage billing: 200 units (highest) × $0.10 = $20.00

Click See calculation example to view detailed usage billing calculations with your specific configuration.

Usage data collection

The system automatically collects usage data through Reconciliation Data (also called usage data or consumption reports) provided by vendors or measured directly by the platform. This data is processed according to your selected aggregation method at the end of each billing period to generate accurate charges.

Set offer component billing rules

The Offer Components tab allows you to fine-tune how individual components (such as Storage, Processor, Network, or other constituent parts of your offer) are billed. Component-level configuration provides granular control when your offer consists of multiple billable elements that may require different billing behaviors.

Understanding offer components

Many offers are not single, monolithic products but rather bundles of multiple components. For example, a cloud infrastructure offer might include separate components for compute instances, storage volumes, and network bandwidth. Each component may have different pricing models, usage patterns, and appropriate billing rules.

Component-level billing rules allow you to override the offer-level defaults for specific components, creating sophisticated pricing structures that accurately reflect the nature of each component.

This configuration is optional—if all components follow the same billing logic, you can simply apply offer-level rules to all components.

Configure component display

Display Offer Components in Invoice lines — Toggle this setting on to control whether individual offer components appear as separate line items on customer invoices. When enabled, customers see a detailed breakdown of charges for each component. When disabled, customers see a single consolidated line item for the entire offer.

This setting is visible to System Admin users only and includes a tooltip explaining: 

When to display components:

• Customers need transparency into component-level pricing
• Different components have different billing rules or rates
• You want customers to understand how each part of the bundle is priced
• Regulatory or contractual requirements mandate itemized billing

When to hide components:

• You want to present the offer as a single integrated solution
• Component-level details might confuse customers
• You prefer to emphasize bundle value over individual parts

NOTE! If you haven't configured pricing plans with the required price variables, a message will display: 
You must complete pricing configuration before setting component-level billing rules.

Edit individual component rules

If you need component-specific billing rules that differ from the offer-level configuration:

1. Ensure Use offer-level configurations is unchecked.
2. Review the Offer Component Billing Rules table showing:
   
   • Offer Component — Component name (e.g., Network, Processor, Storage)
   • Billing rule source — Displays one of three values:
     • Default — Component uses system default billing rules
     • Offer level — Component inherits the offer-level configuration
     • Custom — Component has specific overrides configured
   • Actions — Contains the Edit billing rules link for each component
3. Click Edit billing rules for the component you want to customize.
   
4. A new page opens with two tabs for component-specific configuration:
   

Proration Rules tab

Select and configure proration logic for this specific component. All five proration options are available:

• Prorate charges
• Prorate quantity increase / Don't prorate quantity decrease
• Prorate quantity changes / Don't prorate cancellation
• Prorate quantity increase / Don't prorate quantity decrease and cancellation
• Use highest quantity

Each option includes the same See calculation example link that displays proration calculations specific to this component.

Use case example: You might configure immediate proration for software licenses (encouraging customers to adjust as needed) while using deferred proration for support services (maintaining consistent service levels through the billing period).

Rounding tab

Set component-specific rounding parameters with the same controls as offer-level rounding:

• Unit price — 0-8 decimal places
• Total price — 0-8 decimal places

Use case example: You might use 2 decimal places for subscription components priced in dollars while using 6 decimal places for usage components with very small per-unit costs (like $0.000123 per API call).

Save component configuration

After configuring component-specific rules:

1. Review your selections in both tabs.
2. Click Save & Continue to persist the component configuration.
   
3. The page returns to the Offer Component Billing Rules table.
4. The Billing rule source for that component changes to Custom.
5. Your configuration is saved and will be applied to all transactions involving that component.

Component billing rule inheritance

The system applies billing rules to components using the following priority:

1. Custom component rules (highest priority) — If configured, these always take precedence
2. Offer-level rules — Applied by default, as the "Use offer-level configurations" is  automatically checked if no custom rules were configured
3. Vendor customs rules — Vendor customs rules apply only when the corresponding checkbox is enabled at the Offer level. These rules also extend to Components that inherit their source from the Offer level.

This hierarchy ensures that more specific configurations always override more general ones, giving you precise control at every level.

Save and finalize configuration

After configuring all required billing rules tabs, you must save your configuration and proceed to the next step in the offer creation workflow.

Acknowledgment requirement

Before saving, you must check the acknowledgment checkbox above the footer to confirm you understand the billing rules configuration and its implications. The checkbox text reads: "I understand that Billing Date and Proration Rules cannot be changed after the offer is published."

This acknowledgment serves as a final confirmation that you've reviewed the immutable settings carefully. The Save & Continue button remains disabled until this checkbox is checked, preventing accidental progression without proper review.

Footer actions

The sticky footer at the bottom of the page remains visible even when scrolling through long configuration forms. It provides three action buttons:

Back — Return to the previous step in the offer configuration workflow without saving in-progress changes. Use this button if you need to revise offer related information before finalizing billing rules. Any changes made on the Billing Rules page will be lost.

Reset — Restore the last saved values in the form, discarding any unsaved changes made during the current session. This button is useful when you've made experimental changes and want to return to the last known good configuration without navigating away from the page. All fields revert to their previously saved state.

Save & Continue — Save your billing rules configuration and proceed to the Review step. This button is enabled only when:

• All required fields are completed with valid values (Billing Date selected, Proration method selected, Rounding digits entered within 0-8 range, Usage billing method selected)
• All validation rules are satisfied (no error messages displayed)
• The acknowledgment checkbox is checked

Save behavior and error handling

When you click Save & Continue:

On success:

• All billing rule configurations are persisted to the database
• The system validates that required fields across all tabs are complete
• Your configuration is now associated with the offer and will be applied to all transactions

On error:

• A non-blocking toast notification appears at the bottom of the page
• The error message describes the specific issue (e.g., "Unable to save configuration. Please try again.")
• Your inputs remain intact—you don't lose any entered data
• You can correct any issues and attempt to save again
• The page does not navigate away, allowing you to resolve the error

Post-save routing

After successfully saving your billing rules configuration, the system routes you to the Review step where you can:

• Verify all offer settings across all configuration steps (Basic Info, Pricing, Billing Rules)
• See a comprehensive summary of your billing rules configuration
• Make final adjustments before publishing (by navigating back to any step)
• Proceed to publish the offer, making it available to customers

The Review step serves as a final checkpoint before your offer goes live, ensuring all configurations are correct and aligned with your business requirements.

Limitations

The billing rules configuration includes several important constraints that you should understand before configuring your offers.

Post-publication immutability

Once an offer is published and available to customers, certain billing rule settings become permanent:

Billing Date settings become immutable and appear as read-only controls with a disabled visual state. You cannot change whether billing is anchored to invoice date, purchase date, or adjusted purchase date after publication. This immutability ensures that existing customer subscriptions maintain consistent billing cycles and prevents disruption to customer expectations and payment schedules.

Proration Rules settings become immutable and appear as read-only controls. You cannot change how mid-cycle adjustments are calculated after publication. This constraint protects customers from unexpected changes in how upgrades, downgrades, and cancellations affect their invoices. Existing subscriptions must maintain the proration logic that was in effect when they were purchased.

Warning banner: An important information banner appears at the top of the Billing Rules page, displayed in an orange/amber color scheme with a warning icon. The banner states: "Important: Once an offer is published, you cannot modify its billing rules for proration and billing date. Review these settings carefully before creating your offer configuration." This banner remains visible while configuring billing rules to serve as a persistent reminder.

Editable post-publication settings

The following settings can be modified even after the offer is published:

Rounding parameters can still be edited if needed, allowing you to adjust decimal precision requirements in response to currency changes, regulatory updates, or customer feedback. Changes to rounding apply to new billing cycles but don't retroactively affect existing invoices.

Usage Billing Rules can still be edited if needed, allowing you to switch between total usage and peak usage aggregation methods. This flexibility supports pricing model evolution and competitive response. Changes apply to future billing periods.

Component billing rules can be modified for components that use custom configurations, with the same constraints as offer-level rules (billing date and proration are immutable; rounding and usage are editable).

First offer constraint

For vendors configuring their first offer in the system, the Use default billing rules from vendor option is disabled with explanatory helper text stating: "No vendor-level defaults are available. This is your first offer configuration. Complete the billing rules below, and optionally save them as your vendor default for future offers."

This limitation exists because vendor customs can only be created from an existing offer configuration. After saving your first offer with the "Save as default vendor program level configuration" toggle enabled, future offers can use that configuration as a template.

Configuration dependencies

Component rules dependency: The Offer Components tab is only functional when you have configured pricing plans with the required price variables. Without proper pricing configuration, attempting to set component rules displays the message: "To proceed, please configure pricing plan and specify the required Price Variables!" You must return to the Pricing step to complete that configuration before component-level billing rules can be set.

Impact on existing subscriptions

Changes to editable billing rules (rounding, usage aggregation) affect only future billing cycles. Existing subscriptions that have already generated invoices under previous rules are not retroactively adjusted. This ensures financial consistency and prevents customer confusion from retroactive billing changes.

If you need to fundamentally change billing behavior for an offer, the recommended approach is to create a new offer version with the desired configuration rather than attempting to modify a published offer.

Summary

Billing rules configuration in the Product Management Hub provides Product Managers with comprehensive control over how offers are priced, billed, and invoiced throughout the subscription lifecycle. By thoughtfully configuring billing dates, proration logic, rounding parameters, usage billing methods, and component-level overrides, you ensure your offers align with your business strategy, comply with financial regulations, and provide transparent, fair billing to customers.

The five key components work together to create a complete billing system: billing dates establish the timing foundation, proration rules ensure fair mid-cycle adjustments, rounding parameters maintain financial precision, usage rules support consumption-based pricing models, and component rules enable sophisticated multi-part offers.

Remember that billing date and proration settings become immutable after publishing, making careful initial configuration critical. These settings directly impact customer satisfaction, revenue recognition, cash flow, and operational efficiency, so invest time in selecting the options that best match your business model and customer expectations.

For complex offers or multi-component bundles, consider starting with offer-level rules and only adding component-specific overrides when genuinely necessary. This approach maintains simplicity while still providing the flexibility to handle sophisticated pricing scenarios.

Related content

• How to create a new offer?
• How to create new products?