Conga Product Documentation

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Scenario 10: Usage Calculation Using Multi-Dimensional Price Matrix

In the previous scenarios, we have considered only one dimension that is quantity. However, it is possible to configure the PLI to have multiple dimensions.

Consider a case where you need to bill your customer based on the volume of the quantity consumed. The price for each volume tier varies as per the customer rating. In such a scenario, you need two dimensions, quantity and customer rating.

For example, the customer is billed at a flat rate based on the volume consumed for a product 'StarKit'. As per the customer rating, different flat rates are defined for each volume slab as per the following:

Units

Customer Rating

Gold

Silver

1 - 10

100

120

11 - 20

180

200

21 - 30

255

275

31 +

480

500

Ensure that following prerequisites are satisfied:

  1. A field named Customer Rating on the Account object.
  2. New price dimension called Customer Rating created on the basis of the above field.
  3. A field named Customer Rating on the Usage Input object.

Configuring PLI

Do the following steps to configure PLI:

  1. The first step is to configure the PLI for the Starkit. Set following values for the given fields.

    Price Type= Usage

    Frequency= Monthly

    Price Method= Flat Price

    Price UOM= Each

  2. To enable a user to modify the usage tier, select Is Usage Tier Modifiable.

Applying Price Matrix

Do the following steps to apply price matrix:

  1. From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
  2. Select Matrix Type as Dimension.

    On the Detail page, Dimension1 as Quantity and Dimension1 Value Type as Range. Dimension2 as Customer Rating, and Dimension2Value Type as Discrete.

  3. Go to Matrix Detail and list the entries as

    Sequence

    Quantity

    Customer Rating

    Adjustment Amount

    Adjustment Type

    1

    10

    Gold

    100

    Tier Price

    2

    10

    Silver

    120

    Tier Price

    3

    20

    Gold

    180

    Tier Price

    4

    20

    Silver

    200

    Tier Price

    5

    30

    Gold

    255

    Tier Price

    6

    30

    Silver

    275

    Tier Price

    7

    999999

    Gold

    480

    Tier Price

    8

    999999

    Silver

    500

    Tier Price

  4. The tiered pricing for this product is inherited from the Price Matrix. After defining the tiered rates, click Save. The PLI configuration for a Usage product is complete.
    Note:

    A usage product is always billed in Arrears. It is recommended that you set the Billing Rule to Bill In Arrears.

    Create an order with this usage-based product. The product which is now an activated asset will have a Usage and a Billing Schedule generated automatically. Next, you should provide a Usage Input to record the usage quantity consumed within a specific duration.

Processing the Usage Inputs

To process the usage inputs, navigate to Usage Inputs object.
  1. Enter the Asset Number. This asset number must match with the corresponding asset number that you have specified in the Asset Line Item Detail page.
  2. Enter a Usage Date that corresponds with the Billing Schedule.
  3. Enter the Product UOM. This value should match the value provided on the Product PLI.
  4. Ensure that Status is Loaded.
  5. Enter the Quantity and click Save.

After saving the input, click Process Usage Input to process the amount against the entered quantity.

When the usage is processed successfully, the Status will change to Rated and you will see the amount under Rated Amount.

  • For example, if you specify Quantity as 15 and Customer Rating as Gold, you will see the Rated Amount as $ 180.


  • And if you specify Quantity as 15 and Customer Rating as Silver, you will see the Rated Amount as $ 200.