Billing Cycle Settings

Introduction

This article explains the Billing Cycle settings in Product Management, which enable Vendors to configure how Billing Frequencies are determined and how Discounts are applied based on Customer selections. These settings provide flexibility in pricing structures and allow for complex billing configurations.

In this article:

• Understanding Billing Cycle settings
• Default billing cycle options
• Using custom controls for billing cycles
• Configuring billing cycle controls
• Applying discounts to variables

Understanding Billing Cycle settings

The Billing Cycle settings section in Product Management includes configuration options that determine how Customers are billed and how Discounts are applied. The primary control is the "Default billing cycle" setting, which defines the available Billing Frequency options for Offers.

Default billing cycle options

The Billing Period options include:

Monthly Billing: Sets the default Billing Cycle to monthly charges. Customers will be billed every month.

Yearly: Sets the default Billing Cycle to Annual Billing. Customers will be billed once per year.

One time: Sets the Offer as a One-Time Subscription. Customers will be charged once with no recurring billing.

Use custom control: Allows Vendors to create a custom control (Radio or Dropdown) that lets Customers choose their preferred Billing Frequency. This option provides the most flexibility.

Using custom controls for billing cycles

If the Vendor selects "Use custom control" as the "Default billing cycle," additional configuration options become available to define how the custom control functions.

Configuring billing cycle controls

When "Use custom control" is selected, the following configuration sections appear:

a. Control used for billing cycle

This setting determines which control from the Design section will be used to capture the Customer's Billing Cycle selection:

Charge Period: Links the billing cycle to a Term Duration control created in the Design section. This control defines the Commitment Period and associated Billing Frequency.

None: Indicates no control is selected for billing cycle determination.

b. Billing cycle length and discounts

This section allows Vendors to configure Billing Cycle options and associated Discounts for each option in the custom control:

Control option: Lists the options from your custom control (for example, "1 month" or "1 year").

Billing cycle length: Defines the actual Billing Frequency for each control option. Options include:

• Monthly Billing: Bills Customers every month
• Yearly: Bills Customers annually

Discount, %: Enter the Discount percentage to apply when Customers select this option. For example, enter "0" for no Discount on monthly billing, or "10" for a 10% Discount on Annual Billing.

This configuration enables Vendors to incentivize longer Commitment Periods by offering Discounts for Annual Billing or other extended Terms.

Applying discounts to variables

The "Apply discount to" section determines how Discounts are distributed across pricing variables in your pricing plan:

c. All variables

Select this option when you want to apply a Discount to all services in the entire plan based on the Billing Cycle the Customer chooses for one of the services.

How it works: When a Customer selects a Billing Cycle with an associated Discount (configured in section b), that Discount applies to all pricing variables in the plan, regardless of which specific service prompted the selection.

Use case: This option is ideal for Bundles or comprehensive plans where you want a single Billing Cycle decision to affect all components equally.

d. Some variables

Choose this option when you want to Discount only those services in the plan for which the Customer selected the corresponding Billing Cycle.

How it works: Discounts apply selectively based on which specific services the Customer selected with the discounted Billing Cycle. Other services in the plan maintain their original pricing.

Use case: This option is ideal for complex plans where different services can have different Billing Cycles, and Discounts should only apply to services where the Customer committed to specific billing terms.

Summary

Billing Cycle settings in Product Management enable Vendors to configure how Billing Frequencies are determined and how Discounts are applied. The Default billing cycle setting offers options including Monthly Billing, Yearly, One Time, and Use custom control. When using custom controls, Vendors must specify the control used for billing cycle (either Charge Period or None), configure Billing Cycle lengths and Discount percentages for each option, and determine how Discounts apply to variables (all variables or some variables). The "All variables" option applies Discounts to all services based on a single Billing Cycle selection, while "Some variables" applies Discounts only to services with the corresponding Billing Cycle. These settings provide flexibility for creating complex pricing structures that incentivize longer Commitment Periods and accommodate diverse Customer preferences.