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. 

Use Case: 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. 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. 

UnitsAmount
750$75,000
700$70,000


The customer has opted for quarterly billing frequency.  Your customer has given you multiple prepayments.

WalletAmount
W1$100,000
W2$40,000
W3$15,000


Pre-requisite: 

  • 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

  1. Activate the order line item for Wallet.
  2. Invoice the Wallet. 
    On Wallet asset line item, the net price and available balance are as follows:

    WalletNet PriceAvailable Balance
    W1$100,000$100,000
    W2$40,000$40,000
    W3$15,000$15,000
    W4$8,000$8,000
  3. Activate the order for StarKit Product. 

  4. Billing schedules are created as under:

    Billing SchedulesFee
    BS1$0
    BS2$0
    BS3$0
    BS4$0
  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 $75,000.

BS1
WalletNet PriceAvailable Balance
W1$100,000$25,000
W2$40,000$40,000
W3$15,000$15,000
W4$8,000$8,000
Wallet Drawdown 1
WalletW1
Billing ScheduleBS1
Amount$75,000
Delta Amount$0

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 $70,000.


BS2
WalletNet PriceAvailable Balance
W1$100,000$0
W2$40,000$0
W3$15,000$10,000
W4$8,000$10,000
Wallet Drawdown 2
WalletW1
Billing ScheduleBS2
Amount$25,000
Delta Amount$45,000
Wallet Drawdown 3
WalletW2
Billing ScheduleBS2
Amount$40,000
Delta Amount$5,000
Wallet Drawdown 4
WalletW3
Billing ScheduleBS2
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.

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 negative rated amount.