Advanced Subscription Item Settings

An out-of-the-box ZAB Subscription Item record has a number of optional fields. In some cases these fields are exposed because they work with specific Rate Types. In other scenarios, these fields offer flexibility for charging and billing.

Key Characteristics

• Many optional fields on the Subscription Item are compatible with fields on the Charge Item Map

• A number of values set on these fields can auto-populate from defaults configured through Item Settings and ZAB Preferences Default settings; however, at any time, these fields can be overwritten directly on the Subscription Item

Included Units

The Included Units field allows you to enter a number of Units that are included and should be deducted during any usage-based calculation carried out each period before calculating the billable amount.

• For non-prepaid scenarios, this value is essentially the number of free units (quantity) supplied each period

• For Prepaid Rate Types (Prepaid Subscription (Amount) and Prepaid Item Quantity), this field (in association with the Replenishment fields) enables you to limit and track Prepaid consumption (i.e. set a threshold at which the Prepaid Quantity/Amount is deemed fully consumed)
• For Prepaid Rate Types, the Included Units will be provisioned only once per billing cycle or the Prepaid Fee, unless Unit Replenishment is used

Prepaid Item Quantity vs. Fixed (Recurring) & Usage (Variable) Included Units

• Fixed (Recurring) & Usage (Variable) Included Units expire and are replenished every period
• Prepaid Item Quantity Included Units may be extended over multiple periods (depending on the Charge Schedule of the Prepaid Fee versus the Rating Charge Schedule) and slowly depleted. They may also be replenished or expired on a different timetable.

Create Charges For Included Units

When enabled, this field allows you to create Charges for Included Units, which can be displayed on the Transaction if desired. This option is often used when a customer wants to see the applied Included Units at $0 reflected on their bill. If left unchecked, Included Units are subtracted out of the quantity of variable usage Charges.. When Create Charges For Included Units is enabled, the following behavior occurs:

• Included Units are applied to the total usage quantity for the period 

• The deducted units are displayed as a separate $0 Charge with a negative quantity

Example: Included Units added to the usage-based Subscription item with Create Charges For Included Units unchecked

Configuration

Usage detail for the Subscription Item

Post-Rating: Included Units are subtracted from the total quantity for the period

Post Rating: Included Unites applied and displayed as $0 Charges when Create Charges For Included Units checked

Notice that the first period (06/01-06/31) splits the $0 Charges into two lines. This happens because the first subset of Included Units (quantity: 20) are being applied to the first usage Charge in the period. Since that Charge quantity is less than the total Included Units Quantity, any remaining Included Units are being applied to the next Charge in the period. 

In this example, the first usage record in the period has a quantity of 10, so -10 of the Included Units are applied, leaving the first charge with a quantity of zero The remaining -10 are applied to the next usage record (quantity: 30) for the period. Since there are still billable usage units remaining, an additional $0 Charge is created to account for the Included Units activity. For the August period, there is only one Included Units Charge because the Included Units were fully consumed by the first usage record, which has a quantity greater than the Included Units. There is no need to apply Included Units against the second usage Charge.

Create Charges For Included Units will always record separate charges when Included Units have been applied. Multiple zero-amount charges within a single period would be expected if multiple usage Charges are being created and Included Units should apply across multiple Usage Charges.

Additional Discount Amount & Percentage

These settings are applicable for the following Rate Types only:

• Usage (Variable)

• One-Time Charge

• Fixed (Recurring) & Usage (Variable) - only applicable to Fixed Charges

• Prepaid Subscription (Amount)

• Prepaid Item Quantity - only applicable to Fixed Charges

Additional Discount Amount

This field allows you to enter an additional discount amount to apply to the calculated rate. 

• The discount is a flat amount applied to the rate for each period

• The discount will display under the discount column in the Charge Table

Example:

This example illustrates that the discount is applied to the Charge rate, not the total amount. Note: if a Price Book is in use, the discount will be applied on top of the rate generated by the Price Book.

Additional Discount Percentage

This feature allows you to apply an additional discount percentage against the calculated Rate. For Rate Types that involve both Fixed and Variable Charges, these discounts will only apply against non-variable Charge Types. To apply a discount to variable Charges, you can specify discounts via the Rate Plan Search, Contract Pricing, or Price Books.

Replenishment Frequency and Interval

See Prepaid Rate Types to learn more.

Minimum Charge

For Usage-based Charges, enter a value here if you would like to have a Minimum Charge for this Subscription Item per Rating period.

If multiple Charges are created under this Subscription Item in the same Rating period, their value will be evaluated as a sum to determine whether the set Minimum Charge value has been achieved. In other words, this Minimum Charge does not apply "per Charge" in a rating period, but rather against the total of all Charges created under this Subscription Item per Rating period.

Applicable for the the following Rate Types:

• Usage (Variable)

• Fixed (Recurring) & Usage (Variable): only applicable to variable Charges

• Prepaid Subscription (Amount)

Example:

Usage (Variable)

Fixed (Recurring) & Usage (Variable)

This example highlights that the Fixed charge ($1000) is not considered when assessing the minimum amount to charge. The Minimum Charge only applies to the usage portion of the Subscription Item.

Maximum Charge

For Usage based Charges, enter a value here if you would like to have a Maximum Charge for this Subscription Item per rating period. 

If multiple Charges are created under this Subscription Item in the same Rating period, they will be evaluated together to determine whether this Maximum Charge value has been exceeded. In other words, this Maximum Charge does not apply "per Charge" in a Rating period, but rather against the total of all Charges created under this Subscription Item per Rating period. 

This field can be used when your Maximum Charge is the same for every Rating period.

Example:

Configuration: Fixed (Recurring) & Usage (Variable)

Post-Rating outcome

This example highlights the following: 

• Green: Overage Charges

• Red: Offset Charge of -2,750 to bring the amount to 1000 (the Maximum Charge amount)

• The fixed rate is not impacted by the Maximum Charge value set

Bill In Arrears

Most frequently used for usage-based items, this field provides the option to bill after a service period ends. Learn more about this field under Charge Schedules.

Rating Bill In Arrears

When this option is checked, the Subscription Item will only bill variable Charges in arrears. This field is only applicable when a portion of the Subscription Item is using a separate Charge Schedule (Rating Charge Schedule) to rate variable usage (typically used for hybrid Rate Types). The Rating Charge Schedule selected will also dictate the Bill Date cadence. The following Rate Types can use this field:

• Fixed (Recurring) & Usage (Variable)

• Prepaid Item Quantity

Exclude Charges From Billing When

This option allows you to control whether or not certain Charges show up on the sales Transaction. For example, you can hide the zero amount Charge from the invoice by selecting “Zero Amount”. (Note: both options can be set as default settings via ZAB Preferences or the Item Record).

Zero Amount will also encompass periods where there is zero overage. This is not exclusively used for scenarios where Included Units are added, but it is often used with hybrid Rate Types. When using this option, excluded Charges may still have a quantity that is greater than zero.

Zero Quantity is helpful when rating Consumption-based usage, and there may not be any usage for the period. If the total quantity is zero for the period, you can eliminate these Charges from Transactions or bypass creating a Transaction entirely. 

Billing Schedule

You can optionally select a native NetSuite Billing Schedule here which will push forward to the transaction line level when the Charges are processed. An example of this is a scenario where you have a One-time Charge in Zone Advanced Billing that should be represented on a single Sales Order, but then a native Billing Schedule should Invoice the Customer upon an irregular schedule.

Note: In order to use this feature, Billing Schedules at the line item level must be enabled in NetSuite.

Initial Bill Date

This field allows you to manipulate the Bill Date of only the initial Charges on a particular Subscription Item.  This setting overrides the first Charge’s Bill Date or all projected Bill Dates up until the Initial Bill Date. The Service Periods remain unchanged. 

Delay Charge Creation checkbox

Located under the Charges subtab, this checkbox delays the creation of Charges upon initial Subscription Item creation.

This is typically enabled when a high volume of Subscription Items are created via API, CSV, or data migration and there’s a need for Charges to be delayed for data to process efficiently.

Delayed Charges will generate the next time the Subscription Item is edited or when an Automation to 'Generate Delayed Charges' is executed.

By default, this option will be unchecked (i.e. set to False), but may be checked (i.e. set to True) during initial Subscription Item creation through the UI, an API request, a CSV upload or scripted record creation. This option cannot be retroactively applied to Subscription Items that have already generated Charges as the checkbox will no longer be available.

Ignore Rating for Closed Periods