The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A flat price range is defined for each volume slab as per the following:

  • 1 to 10 units = $120
  • 11 to 20 units = $150
  • 21 to 30 units= $275
  • 31+ units = $500

Steps:

PLI Configuration

  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.

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 Dimension1Value Type as Cumulative Range.
  3. Select Enable Usage Indexing.

  4. Go to Matrix Detail and list the entries as

    SequenceQuantityAdjustment AmountAdjustment Type
    110120Tier Price
    220150Tier Price
    330275Tier Price
    4999999500Tier Price

  5. 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. 

Process Usage Input

Go 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 5, you will see the Rated Amount as $ 120.

  • When creating another usage input with Quantity as 20, you will see the Rated Amount as $ 545 (120 + 150 + 275). 

    Note

    As Usage Indexing is enabled, the total quantity consumed thus far is 25, which falls under the third price tier. Since it is a cumulative range, the Rated Amount is the total amount of first, second, and third cumulative price tiers amount.

  • If you further create another usage input with Quantity as 10, you will see the Rated Amount as $ 775 (275 + 500). 

    Note

    As Usage Indexing is enabled, the total quantity consumed thus far is 35, which falls under the fourth price tier. Since it is a cumulative range, the Rated Amount is the total amount of third and fourth cumulative price tiers amount.