Wallets can be used for making prepayments for usage-based products. For usage-based products, invoicing is done at the end of the contract period. However, usage rating occurs on a recurring basis. Real-time wallet updates reflect the change in the available balance as soon as the usage is rated or unrated.
Description: This use case describes how multiple wallets are consumed for a usage-based product.
Suppose you are a billing administrator for a company selling software licenses. Your customer is billed according to the flat rate defined for each fix quantity for a product 'StarKit'.The cost of each unit is $100. Your customer has recorded two usage ratings.
| Units | Amount |
|---|
| 750 | $75,000 |
| 700 | $70,000 |
The customer has opted for quarterly billing frequency. Your customer has given you multiple prepayments.
| Wallet | Amount |
|---|
| W1 | $100,000 |
| W2 | $40,000 |
| W3 | $15,000 |
Prerequisites:
- Set up the PLI for Wallets and StarKit Product.
- Create and accept the quote for creating assets.
- Link the Wallet assets and the product.
To consume the wallet for software license payment
- Activate the order line item for Wallet.
Invoice the Wallet.
On Wallet asset line item, the net price and available balance are as follows:
| Wallet | Net Price | Available Balance |
|---|
| W1 | $100,000 | $100,000 |
| W2 | $40,000 | $40,000 |
| W3 | $15,000 | $15,000 |
| W4 | $8,000 | $8,000 |
Activate the order for StarKit Product.
Billing schedules are created as under:
| Billing Schedules | Fee |
|---|
| BS1 | $0 |
| BS2 | $0 |
| BS3 | $0 |
| BS4 | $0 |
Rate the usage inputs. For details on processing the usage inputs, refer to Usage Inputs.
- Consumption for Billing Schedule 1
After rating the first usage input with 750 units, the Fee Amount for Billing Schedule BS1 is updated to $75,000.
| BS1 |
|---|
| Wallet | Net Price | Available Balance |
|---|
| W1 | $100,000 | $25,000 |
| W2 | $40,000 | $40,000 |
| W3 | $15,000 | $15,000 |
| W4 | $8,000 | $8,000 |
| Wallet Drawdown 1 |
|---|
| Wallet | W1 |
| Billing Schedule | BS1 |
| Amount | $75,000 |
| Delta Amount | $0 |
Here, the fee amount for the BS1 is paid entirely from the wallet W1.
After rating the second usage input with 700 units, the Fee Amount for Billing Schedule BS2 is updated to $70,000.
| BS2 |
|---|
| Wallet | Net Price | Available Balance |
|---|
| W1 | $100,000 | $0 |
| W2 | $40,000 | $0 |
| W3 | $15,000 | $10,000 |
| W4 | $8,000 | $10,000 |
| Wallet Drawdown 2 |
|---|
| Wallet | W1 |
| Billing Schedule | BS2 |
| Amount | $25,000 |
| Delta Amount | $45,000 |
| Wallet Drawdown 3 |
|---|
| Wallet | W2 |
| Billing Schedule | BS2 |
| Amount | $40,000 |
| Delta Amount | $5,000 |
| Wallet Drawdown 4 |
|---|
| Wallet | W3 |
| Billing Schedule | BS2 |
| Amount | $5,000 |
| Delta Amount | $0 |
Here, $25,000 is paid from W1, $40,000 is paid from W2 and $5,000 is paid from W3.
Result:
- Wallet drawdowns are created.
- Billing Schedule fee is deducted from the wallet balance.
If you rate a usage input with a negative quantity, the rated amount is added back to your wallet amount. The wallet drawdown is also updated to reflect the negative rated amount. You can also enable validation to ensure that the negative rated amount does not exceed the actually consumed amount. To enable this validation, set Validate Usage Reversal as true in Billing System Properties. For example, consider a wallet with balance as $5000. After you consume $1000, the avaialble balance is $4000. If you set Validtae Usage Reversal as true, you will not be able to rate a negative usaga input worth more than $1000.
Validate Usage Reversal system property is available only for wallets linked to a single asset.
