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Prepaid Subscription (Amount)

This Rate Type is used when there is an Amount (Currency) that the Customer has committed to and the Amount is consumed by different kinds of Usage/Activity.

For example if we have Usage for one type of activity (classes taken) and another type of activity (downloads) and the configured Prepaid Amount is meant to cover both types of activity, this is the Rate Type to use. Both kinds of activities are tracked on separate Subscription Items and Usage Records, which are then used to draw down on the upfront paid Amount configured on the Prepaid Subscription Item.

 

rate_types_prepaid_subscription_subitem.png

 

The above snapshot highlights the relationship between the Amount and Included Units. In many cases these values will match. The assumption is that the customer has paid $40,000 upfront and the Included Units is where they will consume the 40,000 over time.

With this Rate Type Included Units are treated as an amount (Currency) so that other usage-based Subscription Items can draw down on the Prepaid Amount. This will reflect as a Unit Adjustment on the Charge Table. Moving forward the Unit Adjustments are created by the Replenishment Interval.

 

Characteristics

  • The Prepaid Amount will be offset by Variable Rating supplied by multiple linked Subscription Items
  • Unlike Prepaid Item Quantity, the customer prepays for a specific dollar amount, not a set number of Units. This allows multiple rates, units, and pricing types to be leveraged against the Prepaid Amount
  • Included Units for this Rate Type are treated as an Amount (Currency), unlike Prepaid Item Quantity where the Included Units are treated as a set Quantity
  • The Prepaid Subscription (Amount) Rate Type is only compatible with usage-based Subscription Items
    • Note: the Fixed (Recurring) & Usage (Variable) Rate Type is not applicable due to the Fixed component
  • You can still leverage other functions of the Usage (Variable) Subscription Items, such as the Charge Item Map to determine how Usage should be evaluated once the Prepaid Amount is depleted
  • This Rate Type does not have a ‘Rate Now’ button (like other usage based Subscription Items).
    • This must be rated at the Subscription level because Usage from multiple Subscription Items are drawing down against the prepaid amount

 

 

Prepaid Subscription (Amount): Fields Required for Configuration

  • Customer
  • Item
  • Name
  • Start Date and End Date
  • Rate Type
  • Quantity
  • Rate
  • Term
  • Included Units
  • Proration Type
  • Charge Schedule
  • Prepaid Subtab
    • Define which Subscription Items can draw down on the Prepaid Amount. If this is not set, no Subscription Items will consume the amount set on the Prepaid Subscription (Amount). See example to learn more
      • Apply Prepaid To All Subscription Items
        • All Usage (Variable) Subscription Items tied to this Subscription will draw down against the Prepaid Amount
      • Apply Prepaid to Subscription Items by Search
        • Create a Saved Search (based on the ZAB Subscription Item Record), to determine which Subscription Items on this Subscription can draw down against the Prepaid Amount. This allows you to create custom filters on the Search (i.e. only Subscription Items with a certain Item, etc.)
      • Prepaid Eligible Subscription Items
        • Select from a list which Subscription Items on the Subscription can draw down against the Prepaid Amount. This allows you to exclude certain usage-based Subscription Items from the Prepaid Amount

Optional Fields

  • Replenishment Frequency and Interval- applicable if the Subscription renews annually. If not set, the next charge will not include Included Units
  • Prepaid Subtab Burst fields, located under the Prepaid Subtab, are configured directly on the Usage-Based Subscription Items that are tied to the Prepaid Subscription Item (Amount). See example to learn more
    • Burst Fields: Used on the other (variable) Subscription Items, this controls how that activity will behave once the Amount has been reached.
    • Prepaid Burst Item: If left blank, the system will continue to base the Rate on the set pricing on that usage-based Subscription Item. This field is only used when there’s a need to change the item once the prepaid threshold has been crossed.
    • Prepaid Burst Description: This text will be used as the Description on individual Prepaid Burst Item Charges. This field supports Handlebars if you want to dynamically add text about the specific transaction.
      NOTE: The default value comes from the Item record for this Subscription Item -- not the Prepaid Burst Item record set on this tab.
    • Prepaid Burst Rate: The amount you want to charge per unit for any Prepaid Burst activity - which is defined as usage that exceeds the remaining Prepaid balance
  • Preferences subtab > Rating Priority - used on the other (variable) Subscription Items
  • Additional Discount Percentage
  • Additional Discount Amount
  • Minimum Charge

 

Creating a Prepaid Subscription (Amount)

The Prepaid Subscription Item (Amount) pulls Usage information from select Usage-based Subscription Items to draw down on the upfront amount configured on the Prepaid Subscription Item. Because there are multiple Subscription Items managed in this scenario, these steps require that you create Usage-based Subscription Items in addition to the Prepaid (Amount) Subscription Item (and it’s recommended you create them first).

  1. Create a Usage (Variable) Subscription Item under the Subscription where your Prepaid Subscription will ultimately live.
  2. Go to the Subscription linked to your newly added Usage (Variable) Subscription Item
  3. Add a new Subscription Item under Subscription Items tab > click New ZAB Subscription Item
  4. Add a Name to the Subscription Item, by default the Item name will populate.
  5. Add an Item Description or leave the defaulted Item Description from the Item Record.
  6. Add Start and End Dates (these can differ from the Subscription)
  7. Under Rate Type, select Prepaid Subscription
  8. Add a Quantity and Rate (this will represent the upfront Amount for your Prepaid Subscription)
  9. Set the Term
    • The Per Term is typically set to Years because the assumption is that the Amount is replenished annually. If the Per Term was set to monthly, the term multiplier could change depending on the Charge Schedule used. Learn more here
  10. Under Included Units, add the number of Units Included with the Prepaid Subscription Item.
    • In almost all Prepaid scenarios, the value entered here will mirror the Rate.
    • For example, if the Rate is $40,000, the Included Units would be 40,000. Learn more about this behavior here.
  11. Add a Replenishment Frequency and Value (this allows you to replenish Included Units throughout the life of the Subscription Item)
  12. Add a Unit Expiration Frequency and Interval (this allows you to set an expiration date for Include Units)
  13. Select the Proration Type
  14. Select a Charge Schedule for the Fixed (Prepaid Amount) component of the Subscription Item for Prepaid Subscriptions, the upfront charge is typically on a yearly cadence
  15. Click on the Prepaid Subtab > select one of the following Prepaid options to determine which Subscription Items are eligible to deplete from the Prepaid Amount
  16. Save
  17. Return to the usage-based Subscription Item(s) selected to deplete against the Prepaid Amount
    • If applicable, click on the Prepaid Subtab, and define the Prepaid Burst Item, Description and Rate
  18. After all Usage-based Subscription Items have been added and defined on the Prepaid Subscription (Amount) Subscription Item, the rating process can be kicked off and tested to confirm the configuration
    • On the parent Subscription level > click the ‘Rate Now’ button

 

Example: Creating a Prepaid Subscription (Amount)

In this example, we will start by reviewing a snapshot of the overall Subscription, then drill down into the details of each Subscription Item.

  1. Subscription Configuration snapshot overview
    rate_types_prepaid_subscription_subitem_create.png
    Note that the Subscription is on an Annual Charge Schedule. The Prepaid Subscription Item has inherited the Charge Schedule from the Subscription. There is a Usage-based Subscription Item added to this Subscription as well. Once fully configured, the Usage portion of this Subscription will feed into the Prepaid Subscription (Amount) where the upfront $40,000 is housed.
     
  2. Prepaid Subscription (Amount) Subscription Item Configuration
    rate_types_prepaid_subscription_subitem_configuration.png
    The Included Units (40,000) reflects the Amount listed under Rate ($40,000), the upfront Amount Charged. The Term is set to Years because the Amount is for a one-year service period. As a reminder, if a different Term is selected, the term multiplier may change, learn more here.
     
  3. Prepaid subtab under the Prepaid (Amount) Subscription Item
    rate_types_prepaid_subscription_subitem_configuration_prepaid_subtab.png
    This is an essential step. Under the Prepaid subtab, select which Usage-based Subscription Items will deplete the upfront Amount.
      In this example, the Apply Prepaid to All Subscription Items is checked, meaning ALL Usage-based Subscription Items on the same Subscription will apply to the prepaid balance. This is further reflected in the table highlighted in green.
     
  4. Usage-based Subscription Item connected to the same Subscription
    rate_types_prepaid_subscription_subitem_configuration_usabe_subitem.png
    In this example, we’ve configured a separate count-based Subscription Item under the same Subscription as the Prepaid Subscription Item. Because the field Apply Prepaid to All Subscription Items has been checked on the Prepaid Subscription Item, the Usage charges generated on this Subscription Item (Classes-Prepaid Example) will apply to the prepaid balance ($40,000).
     
  5. Prepaid subtab under the Usage-based Subscription Item (Classes Prepaid Example)
    rate_types_prepaid_subscription_subitem_configuration_usabe_subitem_prepaid_subtab.png
    On the Subscription Item (Classes Prepaid Example), the Prepaid Burst - Item, Description, and Rate are set so that when the Prepaid Amount is depleted, all overage switches to the Item, Description, and Rate set here.
    In this example, that means additional Usage will use the $400 Usage Rate once the $40,000 is consumed.
     
  6. Rating occurs on the Subscription, not the Subscription Item.
    rate_types_prepaid_subscription_subitem_rating.png
     
  7. Post-Rating: Usage-Based Subscription Item
    rate_types_prepaid_subscription_subitem_post_rating.png
    In this example, the overage Charges (above the Prepaid Amount) using the Burst Rate are outlined in green.
     
  8. Post-Rating: Parent Subscription > Charges, Minimums Tab
    rate_types_prepaid_subscription_subitem_post_rating_parent_sub.png
    Under the Charges, Minimums Tabs, all usage and Unit Adjustments are available for review, including the burst rate once the prepaid Amount is depleted.
     

Important to note- the Prepaid Subscription (Amount) Subscription Item will not display the overage amount from other Subscription Items. On the Prepaid Subscription (Amount) Subscription Item, you’ll only get visibility into Usage that draws down on the upfront amount; offsets are not displayed here. Overage is only exposed on the associated Subscription Items and under the Subscription > Charges, Minimums Subtab.

 

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