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Fixed (Recurring) and Usage (Variable)

This is a hybrid Rate Type that addresses situations wherein a single product or service may be priced with both recurring and variable components.

Common Scenarios that use this Rate Type include cloud services that charge a fixed hosting fee and a variable rate for spinning up instances (servers), car rental companies that charge a flat daily rate as well as rate per mile driven, and SaaS companies that charge a fixed license fee along with ongoing billable hours.

 

rate_types_fixed_and_usage_subitem.png

 

This Rate Type ultimately eliminates the need to create two separate Subscription Items. Some notable characteristics:

  • Requires two Charge Schedules - the Charge Schedule applies to the Fixed (Recurring) portion of the Subscription Item, while the additional charge schedule, the Rating Charge Schedule, controls when and how to charge for variable usage
  • Uses a combination of fields used for Fixed (Recurring) and Usages (Variable)
  • The Charge Type is noted on the Charge Table - Usage and Fixed
  • The Charge Item Map can be leveraged to associate different Items for the fixed and variable Charges

 

Fields Required for Configuration

  • Customer
  • Item
  • Name
  • Start Date and End Date
  • Rate Type
  • Rate Plan
  • Quantity
  • Rate
  • Proration Type
  • Charge Schedule
  • Rating Charge Schedule (does not have to be the same Charge Schedule used for the fixed portion)
  • Overage/Usage Rate (applies a rate to the usage portion of your Subscription)
  • Optional Fields
    • Included Units (if applicable)
    • Price Books (if applicable)
    • Charge Item Map subtab fields allows you to map Charges to different NetSuite Items
    • 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
    • Rating Bill In Arrears
    • Exclude Charges From Billing When
    • Billing Schedule
    • Initial Bill Date
    • Additional optional Subscription Item Settings here

 

Creating a Fixed (Recurring) & Usage (Variable) Subscription Item

  1. Go to your Subscription
  2. Add a new 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 Fixed (Recurring) & 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. Learn more under the Usage Guide.
  8. Add a Quantity and Rate for the Fixed Rate portion of your Subscription
  9. If there are Included Units as part of your Subscription, enter the number of Units.
    • Included Units will only apply to the usage portion of your Subscription Item. If the Included Units should be billed under a different Charge Item, see the Charge Item Map guide
  10. Add a rate to the Overage/Usage Rate field for the variable portion of your Subscription if the rate will not be set from other means (such as the Rate Plan Search Map).
    1. This rate will be applied to your usage, e.g. if Overage/Usage Rate is set to $10, each unit that makes up your variable quantity is rated at $10. (assuming pricing is not derived from another source, see the Pricing Options guide.)
  11. Select Proration Type. Note this is most applicable when the period starts or ends mid month.
  12. Select a Charge Schedule for the Fixed portion of your Subscription
    1. See the Charge Schedule guide to learn more
  13. Under Rating Charge Schedule, select a Charge Schedule for the Variable (Usage) portion of your Subscription Item
  14. Save
  15. (Optional) Test and confirm your configuration
    • Add Usage Data
    • Once Usage has been added, click the Rate Now Button to generate charges

 

Example: Fixed (Recurring) & Variable (Usage) configuration

Fixed (Recurring) & Usage (Variable) Configuration
rate_types_fixed_and_usage_subitem_configuration.png

Consumption-based Usage Detail
rate_types_fixed_and_usage_subitem_configuration_consumption.png

Post-Rating
rate_types_fixed_and_usage_subitem_consumption_post_rating.png

Note: When creating the Subscription Item, Fixed Charges and Usage Charges (displayed as 0) are generated before Rating. After being Rated, Usage Charges are updated and new ones are created if there’s multiple usage in the period.

 

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