Billings for different types of subscriptions

This article explains the billing calculation logic for different types of Subscriptions:

  • One-time subscriptions.
  • Consumption-based subscriptions.
  • License-based subscriptions.

One-time subscriptions:

One-time orders are invoiced on the next billing date after it is purchased with charge type One-time fee.

See examples in the following article: One-time-subscriptions 

Consumption-based subscriptions:

Consumption-based subscriptions are invoiced after their billing cycle ends. All the consumption data is gathered, and the total price is calculated for each meter separately. Then the sum of these total prices for each meter is included in the invoice with the charge type Usage fee.

NOTE! Quantity for Usage fee is always 1, this also means that Unit Price = Total Price.

See examples in the following article: Consumption-based Subscriptions.

License-based subscriptions:

License-based subscriptions are calculated based on subscription events:

  • subscription provisioned,
  • subscription suspended/reactivated,
  • subscription quantity changed.

This type of subscription is invoiced in advance based on the last subscription quantity in the last billing period. If any changes happen to a subscription after the fee in advance, it gets a correction in the next billing period. There are the following change types:

  • Purchase fee: initial fee for a subscription, generated in the next invoice after the subscription start date. The Purchase fee cost is a prorated cost for the first billing period of subscription.
  • Cycle fee: periodic charges for subscription, generated based on subscription’s quantity at the end of its billing period if the subscription is active. Monthly subscriptions get a cycle fee every month, annual subscriptions – every year (in case if the subscription is active on invoice date).
  • Correction: prorated charges for a subscription based on previous cycle fee/purchase fee and actual subscription cost for the previous period (is generated in case if a number of seats have been changed, the subscription has been suspended or reactivated). The quantity for a correction is always 1, this also means that Unit Price = Total Price.

Was this article helpful?

1 out of 1 found this helpful

Add comment

Please sign in to leave a comment.

Comments

1 comment

  • Arturs Smiltnieks

    There is a formatting problem for the line:

    See examples in the following article: Consumption-based Subscriptions.

    The link should be coloured red.

    Arturs Smiltnieks
    0