Recipe: How to set up a License-Based Offer for Distributors

Introduction

This article is a step-by-step recipe for Distributors who need to configure a Product, Offer, and Pricing Plan for a License-Based Subscription with per-seat pricing, flexible Commitment Periods, and post-purchase restrictions in Product Management. By following this guide, you will set up one ready-to-sell Product in your Catalog with commitment-based pricing and controlled License management after purchase.

The example Product used throughout this article is:

TeamChat Pro — a team collaboration tool sold as a License-Based Subscription with per-seat pricing. The Offer supports flexible monthly and annual Commitment Periods with the following pricing:

For example, a Customer purchasing 10 Licenses on a 1-year Term with monthly Billing pays 10 × €12 = €120/month. After purchase, the Customer can add more Licenses at any time but cannot reduce the License count below 10 until the Commitment Period ends.

In this article:

• Prerequisites
• Phase 1: Creating the Product
• Phase 2: Creating the Offer
• Phase 3: Configuring the Pricing Plan
• Phase 4: Configuring post-purchase restrictions
• Phase 5: Setting Billing Rules and Provisioning
• Phase 6: Publishing the Offer
• Phase 7: Adding the Product to the Customer Catalog
• Phase 8: Verifying the Customer view
• How invoicing works
• Summary
• Related content

Prerequisites

Before you begin, ensure the following are in place:

• You have Distributor access to Product Management Hub.
• Your Vendor has been created in Product Management by the Support Team.
• You have signed in to Product Management Hub and enabled the new UI toggle. For details, see Product Management Hub overview.

Phase 1: Creating the Product

Before configuring commercial terms, you must create the master Product entry in Product Management. A Product is the top-level catalog entry that your Offer and Pricing Plan will be attached to.

1. From the My Vendors grid, select View Products (eye icon) next to your Vendor. 
   
    
2. On the Products & Offers page, select the Products tab, then click New Product. 
   
    

3. Fill in the following fields:

   • Name (required): TeamChat Pro
   • Description (required): Enter a detailed summary of the Product (for example: "Team collaboration and messaging platform with per-seat licensing").
   • Image (required): Upload a representative product image. Recommended size: 400 × 400. Accepted formats: PNG, JPG.

   
    

4. Click Create Product. 
   
    
5. The Product will appear in the Products grid under your Vendor. 
   
    

For detailed documentation on all Product fields, see: How to create and edit Products

Phase 2: Creating the Offer

An Offer links a Product to specific commercial terms, availability settings, and catalog visibility. In the new UI, Offer creation follows a five-step wizard: Offer Details, Pricing, Billing Rules, Provisioning, and Review & Publish. This phase covers Step 1 (Offer Details) with all its sub-tabs.

Starting the wizard

1. In the Products grid, select the New Offer (plus icon) in the Actions column next to TeamChat Pro. This opens the New Offer Configuration wizard directly. 
   
    

Offer Details tab

2. In the Basic Information section, configure:

   • Product: Automatically populated as "TeamChat Pro" (cannot be changed).
   • VendorOffer ID (required): Enter a unique identifier for this Offer (for example: teamchat-pro-license).
   • Contract Type (required): Select "Distribution Services" from the dropdown.

   
    

   WARNING! The VendorOffer ID and Contract Type cannot be changed after the Offer is published. Choose carefully.

   
    

3. In the Display Information section, configure:

   • Name: TeamChat Pro
   • Full Name (required): TeamChat Pro
   • Description: Enter a short, Customer-facing description (for example: "Team collaboration with per-seat licensing — scale up anytime").

   
    

Marketing tab

4. Switch to the Marketing tab and configure:

   • Short Description: Brief summary for search results.
   • Extended Description: Detailed description of features and benefits.
   • Offer Image: Upload an image (recommended: 400 × 400, PNG or JPG, max 5 MB).

   

   
    

Availability tab

5. Switch to the Availability tab and configure:

   • Industries: Select which industries can access this Offer (for example: Private business, Government, Education, Nonprofit).
   • Countries: Select the countries where the Offer is available.

   
    

Business Rules tab

6. Switch to the Business Rules tab and enable Renewals automatically. Configure the following deadlines (you can set your own values):

   • Deadlines for scheduling subscription changes:
     • Not sooner than: 7 days before renewal
     • Not later than: 1 day before renewal
   • Deadline for enabling/disabling renewal:
     • Enable Customer can edit renewal status
     • Renewal status change deadline: 7 days before renewal

   These settings define the window during which Customers can make changes before the Subscription auto-renews.

   
    

Terms and Conditions tab

7. Switch to the Terms and Conditions tab and add:

   • Title: Terms and conditions
   • EULA Link: Paste the URL to the End User License Agreement.

   
    

Saving the Draft

8. Click Save as Draft at the bottom of the page. The Offer is saved in Draft status and the Pricing step becomes available. 
    

9. Click Next: Pricing to proceed to the Pricing Plan configuration. 
    

   

    

For detailed documentation on all Offer wizard steps, see: How to create a new Offer

Phase 3: Configuring the Pricing Plan

The Pricing step (Step 2 of the wizard) opens the Pricing Plans view for the Offer. Pricing Plans define the exact commercial logic — including Billing Cycle settings, Quantity controls, Cost Price, and Customer Price.

This Pricing Plan supports two Commitment Periods (1 month and 1 year) and two Billing Cycles (monthly and annual), each with different Customer Prices. Dynamic logic controls which Billing Cycle options are shown based on the Term Duration selected by the Customer.

Creating the Pricing Plan

1. On the Pricing Plans page, click Create New. 
   

   
    

2. In the setup dialog, configure the following and click OK:

   • Effective Date: Today's date
   • Currency: Euro (EUR)
   • Country: All

   
    

Design section

3. In the Design section, add the following controls: 
    

   Text field:

   

   • Label: Text
   • Default value: "TeamChat Pro — per-seat collaboration"

   
    

   Number field (Licenses):

   

   • Click Number to add a numeric input.
   • Label: Licenses
   • Check Use as Quantity
   • Default value: 1 | Min value: 1 | Max value: 500

   
    

   Dropdown 1 — Term Duration:

   

   • Label: Term duration | Mark as Required
   • Items:

   Title	Value
   1 Month	P1M
   1 Year	P1Y

   • Default value: 1 Month

   
    

   Dropdown 2 — Billing Cycle:

   

   • Label: Billing cycle | Mark as Required | Check Use as billing cycle
   • Items:

   Title	Value
   Monthly	Monthly
   Annual	Annual

   • Default value: Monthly
   • Check Show/hide dynamically checkbox under Dynamic Logic

   
    

Dynamic Logic

4. Configure Dynamic Logic for the Billing Cycle field:

   

   • In the Dynamic Logic tab, add a rule:
     • Condition: Depending on control — Term duration
     • Make field visible when: 1 Year is selected
     • Values if hidden: Monthly

   This ensures that Customers selecting a 1-month Term Duration are not shown the Annual Billing Cycle option, preventing invalid combinations.

   
    

Price section

5. In the Price section, configure the following: 

   

    

   Commitment Control: Select the Term Duration control to link commitment length to the Price. Add Commitment Period months:

   Option	Commitment Period	Charge upfront
   1 Month	1 Months	No
   1 Year	12 Months	No

   
    

   Custom Billing Cycles: Check Use custom settings and add two Billing Cycles:

   Type	Duration (months)	Billing duration identifier
   Recurring	1	Monthly
   Recurring	12	Annual

   
    

   Pricing Rule 1 — Price Monthly (for the monthly Billing Cycle):

   • Variable Name: Price Monthly | Billing Cycle: Recurring 1 month(s) (Monthly)
   • Formula — Line 1: Quantity Price Table based on Licenses. Min: 1, Max: 500, Cost Price: 0, Customer Price: 0
   • Formula — Line 2: Choice Price Table based on Term duration:

   Term Duration	Cost Price	Customer Price
   1 Month	15	15
   1 Year	12	12

   
    

   A Customer on a flexible 1-month Term pays €15/month per License. A Customer committed to a 1-year Term pays the discounted rate of €12/month per License, billed monthly.

   Pricing Rule 2 — Price Annual (for the annual Billing Cycle):

   • Variable Name: Price Annual | Billing Cycle: Recurring 12 month(s) (Annual)
   • Formula — Line 1: Quantity Price Table based on Licenses. Min: 1, Max: 500, Cost Price: 0, Customer Price: 0
   • Formula — Line 2: Choice Price Table based on Term duration:

   Term Duration	Cost Price	Customer Price
   1 Month	0	0
   1 Year	12	12

   NOTE! The "1 Month" row in the annual plan is set to €0 because this combination is hidden via Dynamic Logic and will never be presented to the Customer. The system requires a value, but it will not be applied.

   For the "1 Year" row: the Customer pays €12/month × 12 = €144 total per License, billed as a single annual Invoice.

   
    

6. Click Save Plan. 
   

Pricing summary

Phase 4: Configuring post-purchase restrictions

Post-purchase restrictions control how Customers can modify Subscription Quantities after the initial purchase. For TeamChat Pro, the business rule is: Customers on a 1-year Commitment Period can add Licenses at any time but cannot reduce the License count until the Commitment Period ends. Customers on a flexible 1-month Term can increase and decrease freely.

Enabling restrictions on the Licenses control

1. In the Pricing Plan editor, navigate to the Design tab.
2. Select the Licenses (Number) control from the form.
3. In the Properties panel on the right sidebar, scroll to the After Purchase section.
4. Enable the Add restrictions checkbox. This activates the Post-purchase tab in the editor. 
   

Configuring restriction rules

5. Navigate to the Post-purchase tab. 
    

   

   
   You will see two restriction sections: Restrictions for "Term duration" (locked by default — cannot be turned off) and Restrictions for Licenses.

6. In the Restrictions for Licenses section, open the Depends on field dropdown. The available options are:

   • Term duration
   • Billing Cycle
   • None (always readonly)

   Select Billing Cycle. This makes the increase/decrease rules conditional on the Customer's selected Billing Cycle.
    

7. In the Allowed options section, configure the tag toggles for each action:

   Can increase when "Billing Cycle" equals: Click both tags to enable them:

   • Monthly — enabled (checked)
   • Annual — enabled (checked)

   Can decrease when "Billing Cycle" equals: Enable only Monthly:

   • Monthly — enabled (checked)
   • Annual — not enabled (leave unchecked)

   This means Customers can always add Licenses regardless of their Billing Cycle, but can only decrease Licenses when on a monthly Billing Cycle (flexible 1-month Term). Customers on an annual Billing Cycle (1-year Commitment Period) cannot reduce their License count.

   
    

8. Leave the Bypass In Operation checkbox unchecked.
9. Click Save Plan to save the restriction configuration.
   
    

For detailed documentation on all restriction options, see: Configure quantity change rules

After saving the Pricing Plan, return to the Offer wizard and click Next: Billing Rules.

Phase 5: Setting Billing Rules and Provisioning

Steps 3 and 4 of the Offer wizard configure how billing and order fulfillment are handled.

Step 3: Billing Rules

Configure Billing Rules to define how Proration, Billing Cycle Day, and charges are handled. The Billing Rules step has five sub-tabs: Billing Date, Proration Rules, Rounding, Usage Billing Rules, and Offer Components.

1. At the top of the page, select Set custom billing rules. 
   
    

2. On the Billing Date tab (required, cannot change after publishing), select Purchase date. This means Subscriptions are billed on the same calendar day each month as the original purchase date. 
   
    

   NOTE! Four options are available for Billing Date: Purchase date (excluding dates 29, 30, 31), Invoice date, Coterm date, and Purchase date. The right choice depends on your Vendor's invoicing requirements. This recipe uses Purchase date as a common default for License-Based Subscriptions.
    

3. Set Proration Rules accordingly.

   

4. Configure the remaining tabs (, Rounding, Usage Billing Rules, Offer Components) according to your Vendor's requirements. These settings can be adjusted after publishing except for Proration Rules.

For detailed field-by-field instructions on all sub-tabs, see: How to configure Billing Rules in Product Management Hub

After configuring, click Save and Next: Provisioning.

Step 4: Provisioning

Configure how Orders for this Offer are fulfilled. Select one of two methods:

• Send order details to an email (default) — enter the email address that will receive Order notifications.
• Custom sequences configuration — upload a JSON sequence file for automated provisioning.

After configuring, click Next: Review & Publish.

Phase 6: Publishing the Offer

Step 5 of the wizard (Review & Publish) validates the entire Offer and lets you publish. The page shows a compliance overview organized into two columns: Offer Form (covering all Step 1 sub-tabs) and Business Configuration (covering Pricing, Billing Rules, and Provisioning). Each subcategory shows either "Compliant" or the number of issues with a Fix Issue button that navigates directly to the affected field.

1. Review the compliance overview. Resolve any issues shown with the Fix Issue → buttons. 
    
2. In the Billing Rules section, tick the acknowledgment checkbox confirming that Billing Date and Proration settings cannot be changed after publishing. 
    
3. Under Publishing Schedule, select Publish Immediately. 
   
    

4. Click Publish Offer. The Offer status updates to "Published" and appears in the Offers grid. 

   

    

Phase 7: Adding the Product to the Customer Catalog

Once your Offer is published, the Product must be added to the Customer Catalog before Customers can browse and purchase it. For a full overview, see: How to add Products in Catalog?

1. Go to Catalog in the top navigation and select Customer Catalogs. 
   
    
2. Select the catalog (in most cases All (default)).
   
3. Click Edit catalog.
   
4. In the left panel, locate the Not Published section. Filter by your Vendor to find TeamChat Pro. 
   
    
5. Drag the TeamChat Pro card into a category on the right side of the catalog editor.
6. In the Select available offers pop-up, confirm the Offer is checked, then click Save changes. 
   
    
7. A notification confirms that changes are being processed.
   

Phase 8: Verifying the Customer view

Verify the end result by logging in on the Customer's behalf to confirm that the Offer, pricing, and post-purchase restrictions work correctly.

1. Log in on the Customer's behalf and navigate to the Catalog.
2. Find TeamChat Pro in the category you assigned it to. 
   
    
3. Click View offers, then Buy now to open the ordering form. 
   
    

4. The ordering form displays:

   • Licenses — adjustable from 1 to 500.
   • Term Duration — dropdown: 1 Month and 1 Year.
   • Billing Cycle — appears only when 1 Year is selected (Dynamic Logic in action).

   
    

5. Verify that the price table updates correctly. For example, 10 Licenses with a 1-year Term and monthly Billing Cycle shows €12.00 per License per month (€120.00 total). 
   

The Offer is now correctly configured and ready to be purchased by Customers.

How invoicing works

License-Based Subscriptions are billed based on the Quantity of Licenses and the selected Billing Cycle. The following examples show how Invoices appear for a Customer who purchased 10 Licenses of TeamChat Pro on a 1-year Commitment Period.

Invoice details are visible in the Platform's Billings tab under Incoming Billings or Outgoing Billings, depending on your role. The charge-level breakdown is available by clicking the Invoice number to open the Billings details view.

Monthly Billing

A Customer on a 1-year Term with monthly Billing receives an Invoice each month. The first month shows a Purchase Fee; subsequent months show a Cycle Fee:

First month Invoice (purchase):

Subsequent months Invoice (recurring):

Annual Billing

A Customer on a 1-year Term with annual Billing receives a single Invoice for the full Commitment Period:

Summary

This article walked through the full process of creating a License-Based Subscription Offer with per-seat pricing, flexible Commitment Periods, and post-purchase restrictions using the Product Management Hub wizard. The example TeamChat Pro Product was configured with two pricing tiers: €15/month per License on a flexible monthly Term, and €12/month per License on a 1-year Commitment Period (or €144 billed annually). Post-purchase restrictions prevent License decreases during the 1-year Commitment Period while allowing increases at any time.

Related content

• How to create a new Offer
• How to configure Billing Rules in Product Management Hub
• Billing engine supported scenarios
• Recipe: How to onboard Invoice-Based Vendors
• Recipe: How to set up a Usage-based Offer for Distributors