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Usage (Variable)

This Rate Type is used when the quantity and/or amount to charge may vary from one service period to the next. A series of records within ZAB are configured to connect variable data to a Customer’s specific Subscription Item. Additionally, a custom record may be created in NetSuite to house Usage data.

To calculate charges for Subscription Items utilizing variable data, ZAB kicks off a scripted process, referred to as Rating. Learn more about the Rating process under Usage.

The Usage (Variable) Rate Type is flexible in that it can capture the behavior of two different types of Usage (Consumption and Count). Because of this flexibility, this Rate Type can accommodate a number of Use Cases.

 

Common Scenarios include:

  • A data storage company charges customers based on the amount of data stored at a given time.
  • A medical supplies company rents hospital beds and only charges for the number of days that a bed was checked out.
  • A SaaS company charges a monthly fee for each license. Licenses can be added or removed throughout the life of the contract.
  • A company leases a gym for its employees and is charged a monthly membership due for each employee. Most charges are consistent until an employee leaves or a new employee is hired.

 

Characteristics:

  • Quantity and Rate are no longer mandatory fields because quantity will be different for each period. It is suggested to not populate these fields for Usage (Variable) Subscription Items.
  • The Usage (Variable) Rate Type can be used with either Count-Based Usage or Consumption-Based Usage.

 

Fields Required for Configuration

  • Customer
  • Item
  • Name
  • Start Date and End Date
  • Rate Type
  • Rate Plan
    • A Rate Plan is required because it will tell the Subscription Item what quantity and/or rate to charge.
  • Overage/Usage- this is the flat rate to charge per unit consumed
  • Proration Type
  • Charge Schedule
  • Bill in Arrears
    • Bill in Arrears will automatically be checked by default. Most often, customers will Bill in Arrears for usage-based Items in order to evaluate consumption used at the end of the Charge Period prior to billing.
  • Optional Fields
    • Included Units (if applicable)
    • Price Books (if applicable)
    • Charge Item Map subtab fields allows you to map Charges to different NetSuite Items
    • Contract Pricing
    • Create Charges for Included Units
    • Additional Discount Percentage: only applicable to Fixed Charges
    • Additional Discount Amount: only applicable to Fixed Charges
    • Minimum & Maximum Charges: only applicable to variable Charges
    • Bill In Arrears
    • Exclude Charges From Billing When
    • Billing Schedule
    • Initial Bill Date
    • Additional optional Subscription Item Settings here

 

Creating a Usage (Variable) Subscription Item

  1. Go to your Subscription
  2. Add a Subscription Item under Subscription Items > click New ZAB Subscription Item
  3. Add a Name for the Subscription Item, by default the Item name will populate
  4. Add an Item Description or leave the defaulted Item Description from the Item Record
  5. Add Start and End Dates, these can differ from the Subscription
  6. Under Rate Type, select Usage (Variable)
    • Here you’ll notice that the required fields on the Subscription Item change (see configuration below)
  7. Select a Rate Plan.
    • It’s important to note that your Rate Plan will vary depending on the Usage type selected.
  8. If there are Included Units as part of your Subscription Item, enter the number of units
    • If the Included Units should be billed under a different Charge Item, see the Charge Item Map guide
  9. If there is a fixed rate for the Usage, set it in the Overage/Usage Rate field.
    • This rate will be applied to your Usage. e.g. if Overage/Usage Rate is set to $10, each unit that makes up your quantity is rated at $10 (assuming pricing is not derived from another source, see the Pricing Options guide.)
  10. Select Proration Type (most applicable when the period starts or ends mid month)
  11. Select a Charge Schedule
  12. Save
  13. (Optional) Test and confirm your configuration
    • Add Usage Data Usage data should correlate with the Rate Plan selected, e.g. if the Rate Plan was configured for Count Based Usage, add ZAB Count Data
    • Once Usage has been added, click the Rate Now Button to generate charges

 

Example: Usage (Variable) Subscription Item (Consumption-Based Usage)

Usage (Variable) Subscription Item Configuration: Consumption-Based Usage
rate_types_usage_variable_subitem_configuration_consumption.png

 

Usage Detail
rate_types_usage_variable_subitem_configuration_consumption_usage_detail.png

 

Post-Rating
rate_types_usage_variable_subitem_configuration_consumption_post_rating.png

 

 

Example: Usage (Variable) Subscription Item (Count-Based Usage)

In this example, the Subscription Item is rating count data.

  • Rate Plan
    • The selected Rate Plan is Count-based, because the Usage records in the Search are ZAB Count records

Usage (Variable) Subscription Item Configuration: Count-Based Usage
rate_types_usage_variable_subitem_configuration_count.png

Usage Detail (Count Detail)
rate_types_usage_variable_subitem_configuration_count_usage_detail.png

 

Post-Rating
rate_types_usage_variable_subitem_configuration_count_post_rating.png

The Count Data indicates that there are 30 units added in June and another 50 in July. Since neither Count Data record has an End Date, we see a total of 80 in August.

  • Learn more about Count Based Usage here.

 

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