Wallets for Usage Inputs

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. For more details, see Use Case 1.

When the setting Consume Wallet During Invoicing is set to True, the wallet balance is consumed only when the billing schedules of the wallet-linked usage product are invoiced. The Total Balance field of the wallet is updated based on the fee amount of the invoiced billing schedules of the wallet-linked usage product. There is no effect of usage inputs being rated or unrated, on the wallet balance, until the billing schedules of the wallet-linked usage product are invoiced. For more information see Use Case 2.

Use Case 1: Wallet consumption for usage-based products.

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. The customer has opted for quarterly billing frequency.

The 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. 

Your customer has given you multiple prepayments to purchase multiple wallets.

Prerequisites

• Create and accept the quote for creating assets.
• Link the wallet and the actual 'StarKit' at the 'Related Asset Line Item' of either of the asset records.

To consume the wallet for a software license payment

1. Activate the order line item for the wallet.
   

2. Invoice the Wallet. 
   On the wallet asset line item, the net price and available balance are as follows:

   Wallet	Net Price	Available Balance
   W1	USD 1,00,000.00	USD 1,00,000.00
   W2	USD 40,000.00	USD 40,000.00
   W3	USD 15,000.00	USD 15,000.00
   W4	USD 8,000.00	USD 8,000.00

3. Activate the order for StarKit Product. 

4. Billing schedules are created as under:

   Billing Schedules	Fee
   BS1	USD 0.00
   BS2	USD 0.00
   BS3	USD 0.00
   BS4	USD 0.00

5. 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 USD 75,000,00.

The wallet drawdown is reflected in the "Wallet Drawdown" related list of a wallet asset as shown below:

Here, the fee amount for the BS1 is paid entirely from the wallet W1.

• Consumption for Billing Schedule 2

After rating the second usage input with 700 units, the Fee Amount for Billing Schedule BS2 is updated to USD 70,000.00.

Here,  USD 25,000.00 is paid from W1, USD 40,000.00 is paid from W2, and USD 5,000.00 is paid from W3.

Result

• Wallet drawdowns are created.
• The billing schedule fee is deducted from the wallet balance.
  

Use Case 2: Wallet consumption when the setting Consume Wallet During Invoicing is set to True

Description: This use case describes the effect of the setting Consume Wallet During Invoicing for a usage-based product when it is set to True.

You have a wallet asset with a total balance and available balance of USD 1,00,000.00. You want to consume this wallet balance for a usage product with a yearly billing frequency. This product is billed according to the flat rate defined for each fixed quantity. The cost of each unit is USD 10.00. The recorded usage ratings are:

Prerequisites

• The quote is created and accepted for creating assets.
• The setting Consume Wallet During Invoicing is set to True
• The usage product is linked to a wallet having sufficient available balance.

To consume the wallet balance

1. Activate the order for usage product. 

2. Billing schedules and usage schedules are created with a fee amount of USD 0.00.

3. Rate the usage inputs. For details on processing the usage inputs, refer to Usage Inputs.
   Verify the total and available balances of the wallet. The wallet balance must not be consumed and no wallet drawdown is created at this stage due to the setting Consume Wallet During Invoicing is set to True. 
4. Invoice the billing schedule of the usage asset.
   
   

   You must use the invoicing features provided by Conga Billing or out-of-the-box APIs to invoice the billing schedules. This enables Conga Billing to understand the status change of a billing schedule and update the available and total balance amounts accordingly. If the invoicing is done manually or through any other automated interface, the billing schedule's status change is not communicated effectively to Conga Billing.

   Verify the total and available balances of the wallet.  Wallet drawdown is created and the wallet balance is reduced by an amount equal to the fee amount of the billing schedule. 

Result

• Wallet drawdowns are created only when the billing schedules of the usage product are invoiced. 
• The billing Schedule fee is deducted from the wallet balance.

Rating Usage Inputs with Negative Quantity

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 negatively 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 a balance of $5000. After you consume $1000, the available balance is $4000. If you set Validate Usage Reversal as true, you will not be able to rate a negative usage input worth more than $1000. 

Validate Usage Reversal system property is available only for wallets linked to a single asset.