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Download page Scenario 8: Per Unit with Cumulative Range When Enable Usage Indexing is Selected.
Scenario 8: Per Unit with Cumulative Range When Enable Usage Indexing is Selected
The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A price range is defined for each volume slab as per the following:
- 1 to 10 units = 5%
- 11 to 20 units = 10%
- 21 to 30 units= 15%
- 31+ units = 20%
Steps:
PLI Configuration
- The first step is to configure the PLI for the Starkit. Set following values for the given fields.
List Price=100
Price Type= Usage
Selling Frequency and Billing Frequency = Yearly
Price Method= Per Unit
Price UOM= Each - To enable a user to modify the usage tier, select Is Usage Tier Modifiable.
Apply Price Matrix
- From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
- Select Matrix Type as Dimension.
On the Detail page, Dimension1 as Quantity and Dimension1Value Type as Cumulative Range. - Select Enable Usage Indexing.
Go to Matrix Detail and list the entries as
Sequence Quantity Adjustment Amount Adjustment Type Final Amount 1 10 5 % Markup 105 2 20 10 % Markup 110 3 30 15 % Markup 115 4 999999 20 % Markup 120 
Note
When you specify the Adjustment Type as % Markup, Billing increases the List Price by the percentage of the Adjustment Amount in the price matrix.
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.
- 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.
- Enter a Usage Date that corresponds with the Billing Schedule.
- Enter the Product UOM. This value should match the value provided on the Product PLI.
- Ensure that Status is Loaded.
- 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:
| Usage Input | Quantity | Usage Date | Rated Amount ($) | Selling Frequency | Billing Frequency | Description |
|---|---|---|---|---|---|---|
| 1 | 5 | 02/01/2021 | 525 | SF1 | BF1 | In this usage input, the quantity consumed is 5, which falls under the first price tier. The rated amount is: 525=(5*105) |
| 2 | 20 | 06/25/2021 | 2200 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 25 (5+20), which falls under the first, second, and third price tiers. Because it is a cumulative range, the rated amount is the total of the first, second, and third price tiers' amount: 2200=((5*105)+(10*110)+(5*115)) |
| 3 | 15 | 12/19/2021 | 1775 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 40 (5+20+15), which falls under the third and fourth price tiers. Because it is a cumulative range, the rated amount is the total of the third and fourth price tiers' amount: 1775=((5*115)+(10*120)) |
In this example, Enable Usage Indexing is True, Dimension1Value Type as Cumulative Range, and Selling Frequency and Billing Frequency = Yearly.
- Because the Billing Frequency = Yearly, the billing schedule fee amount is $ 4500 (525+2200+1775).
The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A price range is defined for each volume slab as per the following:
- 1 to 10 units = $10
- 11 to 20 units = $20
- 21 to 30 units= $30
- 31+ units = $40
Steps:
PLI Configuration
- The first step is to configure the PLI for the Starkit. Set following values for the given fields.
List Price=100
Price Type= Usage
Selling Frequency and Billing Frequency = Yearly
Price Method= Per Unit
Price UOM= Each - To enable a user to modify the usage tier, select Is Usage Tier Modifiable.
Apply Price Matrix
- From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
- Select Matrix Type as Dimension.
On the Detail page, Dimension1 as Quantity and Dimension1Value Type as Cumulative Range. - Select Enable Usage Indexing.
Go to Matrix Detail and list the entries as
Sequence Quantity Adjustment Amount Adjustment Type Final Amount 1 10 10 Markup Amount 110 2 20 20 Markup Amount 120 3 30 30 Markup Amount 130 4 999999 40 Markup Amount 140
Note
When you specify the Adjustment Type as Markup Amount, Billing increases the List Price by the Adjustment Amount in the price matrix.
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.
- 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.
- Enter a Usage Date that corresponds with the Billing Schedule.
- Enter the Product UOM. This value should match the value provided on the Product PLI.
- Ensure that Status is Loaded.
- 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:
| Usage Input | Quantity | Usage Date | Rated Amount ($) | Selling Frequency | Billing Frequency | Description |
|---|---|---|---|---|---|---|
| 1 | 5 | 02/01/2021 | 550 | SF1 | BF1 | In this usage input, the quantity consumed is 5, which falls under the first price tier. The rated amount is: 550=(5*110) |
| 2 | 20 | 06/25/2021 | 2400 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 25 (5+20), which falls under the first, second, and third price tiers. Because it is a cumulative range, the rated amount is the total of the first, second, and third price tiers' amount: 2400=((5*110)+(10*120)+(5*130)) |
| 3 | 15 | 12/19/2021 | 2050 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 40 (5+20+15), which falls under the third and fourth price tiers. Because it is a cumulative range, the rated amount is the total of the third and fourth price tiers' amount: 2050=((5*130)+(10*140)) |
In this example, Enable Usage Indexing is True, Dimension1Value Type as Cumulative Range, and Selling Frequency and Billing Frequency = Yearly.
- Because the Billing Frequency = Yearly, the billing schedule fee amount is $ 5000 (550+2400+2050).
The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A price range is defined for each volume slab as per the following:
- 1 to 10 units = 5%
- 11 to 20 units = 10%
- 21 to 30 units= 15%
- 31+ units = 20%
Steps:
PLI Configuration
- The first step is to configure the PLI for the Starkit. Set following values for the given fields.
List Price=100
Price Type= Usage
Selling Frequency and Billing Frequency = Yearly
Price Method= Per Unit
Price UOM= Each - To enable a user to modify the usage tier, select Is Usage Tier Modifiable.
Apply Price Matrix
- From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
- Select Matrix Type as Dimension.
On the Detail page, Dimension1 as Quantity and Dimension1Value Type as Cumulative Range. - Select Enable Usage Indexing.
Go to Matrix Detail and list the entries as
Sequence Quantity Adjustment Amount Adjustment Type Final Amount 1 10 5 % Discount 95 2 20 10 % Discount 90 3 30 15 % Discount 85 4 999999 20 % Discount 80
Note
When you specify the Adjustment Type as % Discount, Billing decreases the List Price by the percentage of the Adjustment Amount in the price matrix.
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.
- 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.
- Enter a Usage Date that corresponds with the Billing Schedule.
- Enter the Product UOM. This value should match the value provided on the Product PLI.
- Ensure that Status is Loaded.
- 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:
| Usage Input | Quantity | Usage Date | Rated Amount ($) | Selling Frequency | Billing Frequency | Description |
|---|---|---|---|---|---|---|
| 1 | 5 | 02/01/2021 | 475 | SF1 | BF1 | In this usage input, the quantity consumed is 5, which falls under the first price tier. The rated amount is: 475=(5*95) |
| 2 | 20 | 06/25/2021 | 1800 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 25 (5+20), which falls under the first, second, and third price tiers. Because it is a cumulative range, the rated amount is the total of the first, second, and third price tiers' amount: 1800=((5*95)+(10*90)+(5*85)) |
| 3 | 15 | 12/19/2021 | 1225 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 40 (5+20+15), which falls under the third and fourth price tiers. Because it is a cumulative range, the rated amount is the total of the third and fourth price tiers' amount: 1225=((5*85)+(10*80)) |
In this example, Enable Usage Indexing is True, Dimension1Value Type as Cumulative Range, and Selling Frequency and Billing Frequency = Yearly.
- Because the Billing Frequency = Yearly, the billing schedule fee amount is $ 3500 (475+1800+1225).
The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A price range is defined for each volume slab as per the following:
- 1 to 10 units = $10
- 11 to 20 units = $20
- 21 to 30 units= $30
- 31+ units = $40
Steps:
PLI Configuration
- The first step is to configure the PLI for the Starkit. Set following values for the given fields.
List Price=100
Price Type= Usage
Selling Frequency and Billing Frequency = Yearly
Price Method= Per Unit
Price UOM= Each - To enable a user to modify the usage tier, select Is Usage Tier Modifiable.
Apply Price Matrix
- From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
- Select Matrix Type as Dimension.
On the Detail page, Dimension1 as Quantity and Dimension1Value Type as Cumulative Range. - Select Enable Usage Indexing.
Go to Matrix Detail and list the entries as
Sequence Quantity Adjustment Amount Adjustment Type Final Amount 1 10 10 Discount Amount 90 2 20 20 Discount Amount 80 3 30 30 Discount Amount 70 4 999999 40 Discount Amount 60
Note
When you specify the Adjustment Type as Discount Amount, Billing decreases the List Price by the Adjustment Amount in the price matrix.
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.
- 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.
- Enter a Usage Date that corresponds with the Billing Schedule.
- Enter the Product UOM. This value should match the value provided on the Product PLI.
- Ensure that Status is Loaded.
- 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:
| Usage Input | Quantity | Usage Date | Rated Amount ($) | Selling Frequency | Billing Frequency | Description |
|---|---|---|---|---|---|---|
| 1 | 5 | 02/01/2021 | 450 | SF1 | BF1 | In this usage input, the quantity consumed is 5, which falls under the first price tier. The rated amount is: 450=(5*90) |
| 2 | 20 | 06/25/2021 | 1600 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 25 (5+20), which falls under the first, second, and third price tiers. Because it is a cumulative range, the rated amount is the total of the first, second, and third price tiers' amount: 1600=((5*90)+(10*80)+(5*70)) |
| 3 | 15 | 12/19/2021 | 950 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 40 (5+20+15), which falls under the third and fourth price tiers. Because it is a cumulative range, the rated amount is the total of the third and fourth price tiers' amount: 950=((5*70)+(10*60)) |
In this example, Enable Usage Indexing is True, Dimension1Value Type as Cumulative Range, and Selling Frequency and Billing Frequency = Yearly.
- Because the Billing Frequency = Yearly, the billing schedule fee amount is $ 3000 (450+1600+950).
The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A 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
- The first step is to configure the PLI for the Starkit. Set following values for the given fields.
List Price= $100
Price Type= Usage
Selling Frequency and Billing Frequency = Yearly
Price Method= Per Unit
Price UOM= Each - To enable a user to modify the usage tier, select Is Usage Tier Modifiable.
Apply Price Matrix
- From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
- Select Matrix Type as Dimension.
On the Detail page, Dimension1 as Quantity and Dimension1Value Type as Cumulative Range. - Select Enable Usage Indexing.
Go to Matrix Detail and list the entries as
Sequence Quantity Adjustment Amount Adjustment Type Final Amount 1 10 120 List Price Override 120 2 20 150 List Price Override 150 3 30 275 List Price Override 275 4 999999 500 List Price Override 500
Note
When you specify the Adjustment Type as List Price Override, Billing overrides the List Price with the Adjustment Amount in the price matrix because Billing does not take List Price into consideration.
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.
- 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.
- Enter a Usage Date that corresponds with the Billing Schedule.
- Enter the Product UOM. This value should match the value provided on the Product PLI.
- Ensure that Status is Loaded.
- 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:
| Usage Input | Quantity | Usage Date | Rated Amount ($) | Selling Frequency | Billing Frequency | Description |
|---|---|---|---|---|---|---|
| 1 | 5 | 02/01/2021 | 600 | SF1 | BF1 | In this usage input, the quantity consumed is 5, which falls under the first price tier. The rated amount is: 600=(5*120) |
| 2 | 20 | 06/25/2021 | 3475 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 25 (5+20), which falls under the first, second, and third price tiers. Because it is a cumulative range, the rated amount is the total of the first, second, and third price tiers' amount: 3475=((5*120)+(10*150)+(5*275)) |
| 3 | 15 | 12/19/2021 | 6375 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 40 (5+20+15), which falls under the third and fourth price tiers. Because it is a cumulative range, the rated amount is the total of the third and fourth price tiers' amount: 6375=((5*275)+(10*500)) |
In this example, Enable Usage Indexing is True, Dimension1Value Type as Cumulative Range, and Selling Frequency and Billing Frequency = Yearly.
- Because the Billing Frequency = Yearly, the billing schedule fee amount is $ 10450 (600+3475+6375).
The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A 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
- The first step is to configure the PLI for the Starkit. Set following values for the given fields.
List Price=100
Price Type= Usage
Selling Frequency and Billing Frequency = Yearly
Price Method= Per Unit
Price UOM= Each - To enable a user to modify the usage tier, select Is Usage Tier Modifiable.
Apply Price Matrix
- From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
- Select Matrix Type as Dimension.
On the Detail page, Dimension1 as Quantity and Dimension1Value Type as Cumulative Range. - Select Enable Usage Indexing.
Go to Matrix Detail and list the entries as
Sequence Quantity Adjustment Amount Adjustment Type 1 10 120 Tier Price 2 20 150 Tier Price 3 30 275 Tier Price 4 999999 500 Tier Price
Note
When you specify the Adjustment Type as Tier Price, Billing considers the Adjustment Amount in the price matrix as the flat price.
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.
- 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.
- Enter a Usage Date that corresponds with the Billing Schedule.
- Enter the Product UOM. This value should match the value provided on the Product PLI.
- Ensure that Status is Loaded.
- 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:
| Usage Input | Quantity | Usage Date | Rated Amount ($) | Selling Frequency | Billing Frequency | Description |
|---|---|---|---|---|---|---|
| 1 | 5 | 02/01/2021 | 120 | SF1 | BF1 | In this usage input, the quantity consumed is 5, which falls under the first price tier. The rated amount is: 120 |
| 2 | 20 | 06/25/2021 | 425 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 25 (5+20), which falls under the first, second, and third price tiers. Because it is a cumulative range, the rated amount is the total of the first, second, and third price tiers' amount: 425=(0+150+275) |
| 3 | 15 | 12/19/2021 | 500 | SF1 | BF1 | In this usage input, the total quantity consumed thus far is 40 (5+20+15), which falls under the third and fourth price tiers. Because it is a cumulative range, the rated amount is the total of the third and fourth price tiers' amount: 500=(0+500) |
In this example, Enable Usage Indexing is True, Dimension1Value Type as Cumulative Range, and Selling Frequency and Billing Frequency = Yearly.
- Because the Billing Frequency = Yearly, the billing schedule fee amount is $ 1045 (120+425+500).
The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A 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
- The first step is to configure the PLI for the Starkit. Set following values for the given fields.
List Price=100
Price Type= Usage
Selling Frequency and Billing Frequency = Yearly
Price Method= Per Unit
Price UOM= Each - To enable a user to modify the usage tier, select Is Usage Tier Modifiable.
Apply Price Matrix
- From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
- Select Matrix Type as Dimension.
On the Detail page, Dimension1 as Quantity and Dimension1Value Type as Cumulative Range. - Select Enable Usage Indexing.
Go to Matrix Detail and list the entries as
Sequence Quantity Adjustment Amount Adjustment Type 1 10 120 Price Factor 2 20 150 Price Factor 3 30 275 Price Factor 4 999999 500 Price Factor
Note
When you specify the Adjustment Type as Price Factor, Billing multiplies the List Price with Quantity and does not consider Adjustment Amount in the price matrix.
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.
- 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.
- Enter a Usage Date that corresponds with the Billing Schedule.
- Enter the Product UOM. This value should match the value provided on the Product PLI.
- Ensure that Status is Loaded.
- 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:
| Usage Input | Quantity | Usage Date | Rated Amount ($) | Selling Frequency | Billing Frequency | Description |
|---|---|---|---|---|---|---|
| 1 | 5 | 02/01/2021 | 500 | SF1 | BF1 | In this usage input, the quantity consumed is 5. Price tier in the price matrix does not play a role here. Billing performs a flat calculation by multiplying the List Price with Quantity. 500=(5*100) |
| 2 | 20 | 06/25/2021 | 2000 | SF1 | BF1 | In this usage input, the quantity consumed is 20. Though Usage Indexing is enabled, price tier in the price matrix does not play a role here. Billing performs a flat calculation by multiplying the List Price with Quantity. 2000=(20*100) |
| 3 | 15 | 12/19/2021 | 1500 | SF1 | BF1 | In this usage input, the quantity consumed is 15. Though Usage Indexing is enabled, price tier in the price matrix does not play a role here. Billing performs a flat calculation by multiplying the List Price with Quantity. 1500=(15*100) |
In this example, Enable Usage Indexing is True, Dimension1Value Type as Cumulative Range, and Selling Frequency and Billing Frequency = Yearly.
- Because the Billing Frequency = Yearly, the billing schedule fee amount is $ 4000 (500+2000+1500).
The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A price range is defined for each volume slab as per the following:
- 1 to 10 units = 10%
- 11 to 20 units = 20%
- 21 to 30 units = 30%
- 31to 40 units = 40%
- 41+ units = 50%
Steps:
PLI Configuration
- The first step is to configure the PLI for the Starkit. Set following values for the given fields.
List Price=100
Price Type= Usage
Selling Frequency = Half Yearly and Billing Frequency = Quarterly
Price Method= Per Unit
Price UOM= Each - To enable a user to modify the usage tier, select Is Usage Tier Modifiable.
Apply Price Matrix
- From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
- Select Matrix Type as Dimension.
On the Detail page, Dimension1 as Quantity and Dimension1Value Type as Cumulative Range. - Select Enable Usage Indexing.
Go to Matrix Detail and list the entries as
Sequence Quantity Adjustment Amount Adjustment Type Final Amount 1 10 10 % Markup 110 2 20 20 % Markup 120 3 30 30 % Markup 130 4 40 40 % Markup 140 5 999999 50 % Markup 150
Note
When you specify the Adjustment Type as % Discount, Billing decreases the List Price by the percentage of the Adjustment Amount in the price matrix.
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.
- 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.
- Enter a Usage Date that corresponds with the Billing Schedule.
- Enter the Product UOM. This value should match the value provided on the Product PLI.
- Ensure that Status is Loaded.
- 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.
In this example:
- Enable Usage Indexing is True, Dimension1Value Type as Cumulative Range, Selling Frequency = Half Yearly, and Billing Frequency = Quarterly.
- Selling Frequency 1 (SF1) is from 01/01/2021 to 06/30/2021.
- Selling Frequency 2 (SF2) is from 07/01/2021 to 12/31/2021.
- Billing Day of the Month in Billing Preference is set to 1st of the Month.
- Billing Frequency 1 (BF1) is from 01/01/2021 to 03/31/2021.
- Billing Frequency 2 (BF2) is from 04/01/2021 to 06/30/2021.
- Billing Frequency 3 (BF3) is from 07/01/2021 to 09/30/2021.
- Billing Frequency 4 (BF4) is from 10/01/2021 to 12/31/2021.
- Usage inputs honour the selling frequency periods, that is, the rated amount calculation happens based on the selling frequency.
- Cumulation of rated amount happens for common billing frequency periods, that is, if two usage inputs fall under the same billing frequency, their rated amounts will be cumulated into one billing schedule fee amount.
| Usage Input | Quantity | Usage Date | Rated Amount ($) | Selling Frequency | Billing Frequency | Description |
|---|---|---|---|---|---|---|
| 1 | 37 | 02/01/2021 | 4580 | SF1 | BF1 | This usage input is part of SF1 and the quantity consumed is 37, which falls under four price tiers. Because it is a cumulative range, the rated amount is the total of first, second, third, and fourth cumulative price tiers' amount. 4580=((10*110)+(10*120)+(10*130)+(7*140)) |
| 2 | 2 | 08/31/2021 | 220 | SF2 | BF3 | This usage input is part of SF2 and the quantity consumed is 2, which falls under the first price tier. Because it is a cumulative range, the rated amount is: 220=(2*110) |
| 3 | 15 | 05/02/2021 | 2220 | SF1 | BF2 | This usage input is part of SF1 and the total quantity consumed thus far is 52(37+15), which falls under the fourth and fifth price tiers. Because it is a cumulative range, the rated amount is the total of fourth and fifth cumulative price tiers' amount. 2220=((3*140)+(12*150)) |
| 4 | 28 | 03/30/2021 | 4200 | SF1 | BF1 | This usage input is part of SF1 and the total quantity consumed thus far is 80(37+15+28), which falls under the fifth price tier. Because it is a cumulative range, the rated amount is the total of fifth price tier's amount. 4200=(28*150)
Because the Billing Frequency = Quarterly, the billing schedule fee amount for BF1 is the total amount of Usage Input 1 and Usage Input 4. 4580+4200=8780 |
| 5 | 4 | 11/01/2021 | 440 | SF2 | BF4 | This usage input is part of SF2 and the total quantity consumed thus far is 6 (2+4), which falls under the first price tier. Because it is a cumulative range, the rated amount is. 440=(4*110) |
| 6 | 9 | 07/30/2021 | 1040 | SF2 | BF3 | This usage input is part of SF2 and the total quantity consumed thus far is 15 (2+4+9), which falls under the first and second price tiers. Because it is a cumulative range, the rated amount is the total of first and second cumulative price tiers' amount. 1040=((4*110)+(5*120))
Because the Billing Frequency = Quarterly, the billing schedule fee amount for BF3 is the total amount of Usage Input 2 and Usage Input 6. 220+1040=1260 |
In case, Billing Day of the Month in Billing Preference is set to 15th day of the month, the selling frequency period calculation honours the Billing Day of the Month. In that case, the billing frequency distribution will be different.
The customer is billed cumulatively based on the volume consumed for a product 'StarKit'. A price range is defined for each volume slab as per the following:
- 1 to 10 units = 10%
- 11 to 20 units = 20%
- 21 to 30 units = 30%
- 31to 40 units = 40%
- 41+ units = 50%
Steps:
PLI Configuration
- The first step is to configure the PLI for the Starkit. Set following values for the given fields.
List Price=100
Price Type= Usage
Selling Frequency = Half Yearly and Billing Frequency = Yearly
Price Method= Per Unit
Price UOM= Each - To enable a user to modify the usage tier, select Is Usage Tier Modifiable.
Apply Price Matrix
- From the Price List Item tabs, open the Matrices tab and click New to add a new Price Matrix.
- Select Matrix Type as Dimension.
On the Detail page, Dimension1 as Quantity and Dimension1Value Type as Cumulative Range. - Select Enable Usage Indexing.
Go to Matrix Detail and list the entries as
Sequence Quantity Adjustment Amount Adjustment Type Final Amount 1 10 10 % Discount 90 2 20 20 % Discount 80 3 30 30 % Discount 70 4 40 40 % Discount 60 5 999999 50 % Discount 50
Note
When you specify the Adjustment Type as % Discount, Billing decreases the List Price by the percentage of the Adjustment Amount in the price matrix.
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.
- 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.
- Enter a Usage Date that corresponds with the Billing Schedule.
- Enter the Product UOM. This value should match the value provided on the Product PLI.
- Ensure that Status is Loaded.
- 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.
In this example:
- Enable Usage Indexing is True, Dimension1Value Type as Cumulative Range, Selling Frequency = Half Yearly, and Billing Frequency = Yearly.
- Selling Frequency 1 (SF1) is from 01/01/2021 to 06/30/2021.
- Selling Frequency 2 (SF2) is from 07/01/2021 to 12/31/2021.
- Billing Day of the Month in Billing Preference is set to 1st of the Month.
- Usage inputs honour the selling frequency periods, that is, the rated amount calculation happens based on the selling frequency.
| Usage Input | Quantity | Usage Date | Rated Amount ($) | Selling Frequency | Billing Frequency | Description |
|---|---|---|---|---|---|---|
| 1 | 7 | 02/01/2021 | 630 | SF1 | BF1 | This usage input is part of SF1. The quantity consumed is 5, which falls under the first price tier. The rated amount is: 630=(7*90) |
| 2 | 2 | 01/01/2021 | 180 | SF1 | BF1 | This usage input is part of SF1. The total quantity consumed thus far is 9(7+2), which falls under the first price tier. Because it is a cumulative range, the rated amount is: 180=(2*90) |
| 3 | 15 | 03/02/2021 | 1170 | SF1 | BF1 | This usage input is part of SF1. The total quantity consumed thus far is 24(7+2+15), which falls under the first, second, and third price tiers. Because it is a cumulative range, the rated amount is the total of first, second, and third cumulative price tiers' amount. 1170=((1*90)+(10*80)+(4*70)) |
| 4 | 28 | 12/31/2021 | 2260 | SF2 | BF1 | This usage input is part of SF2. The quantity consumed thus far is 28, which falls under three price tiers. Because it is a cumulative range, the rated amount is the total of first, second, and third cumulative price tiers' amount. 2260=((10*90)+(10*80)+(8*70)) |
| 5 | 4 | 07/01/2021 | 260 | SF2 | BF1 | This usage input is part of SF2. The total quantity consumed thus far is 32(28+4), which falls under the third and fourth price tiers. Because it is a cumulative range, the rated amount is the total of third and fourth cumulative price tiers' amount. 260=((2*70)+(2*60)) |
| 6 | 9 | 06/30/2021 | 600 | SF1 | BF1 | This usage input is part of SF1. The total quantity consumed thus far is 33(7+2+15+9), which falls under the third, and fourth price tiers. Because it is a cumulative range, the rated amount is the total of third and fourth cumulative price tiers' amount. 600=((6*70)+(3*60)) |
- Because the Billing Frequency = Yearly, the billing schedule fee amount is $ 5100 (630+180+1170+2260+260+600).
- In case, Billing Day of the Month in Billing Preference is set to 15th day of the month, the selling frequency period calculation honours the Billing Day of the Month. In that case, the billing frequency distribution will be different.