You can charge a minimum fee to your customers if no usage or insufficient usage is recorded in the contract term. If usage consumption is less than the minimum amount or no usage consumption is recorded, the customers are invoiced with the minimum fee charge.

 Prerequisites

  1. Create a custom field with Data Type as Currency on the  Asset Line Item.
  2. Enter the API name of the custom field in the Usage Minimum Field API Name setting in Billing Product Settings.

Appling Minimum Fee
For example, you are a finance user in the Billing department of an Internet Service Provider. The pricing matrix can be tiered as follows:

  • 1 GB to 999 GB: $10 per GB
  • 1000 GB to 1999 GB: $9 per GB
  • 2000 GB to 2999 GB: $8 per GB

You want to charge your customer a minimum fee of $5 if no usage consumption is recorded. To apply a minimum fee, select Always Apply Usage Minimum from Billing System Properties

To apply the minimum fee

  1. Add the usage product in your cart. 
  2. Accept the Quote and activate the order.
  3. Edit the Asset Line Item and capture the minimum fee in your custom field. 
  4. Rate the usage input. 

If Always Apply Usage Minimum is selected, a minimum fee of $5 is charged in the billing schedule after you activate your customer's order.

If you do not select Always Apply Usage Minimum,  the minimum fee is only charged after you rate your customer's usage input and the rated amount is less than the minimum fee amount.

Minimum Fee for Bundle Products 

For bundle products, you can set the minimum fee at the bundle level or set it at the individual option product level. 

Minimum Fee at Bundle Level

Consider the following bundle product configuration:

ProductCharge TypePer Unit PriceMonthly Minimum
Bundle B1Usage
$1,000
Option O1Usage$1
Option O2Usage$2

Here, the monthly minimum is set at the bundle level. 

The usage consumption for the option products is as follows: 

Asset Line ItemQuantityPer Unit PriceRated Amount
Option O1200$1$200
Option O2300$2$600

As the total rated amount, $800 is less than the monthly minimum charge of $1000, an invoice is generated for $1000 amount for the bundle product. 

Invoice
Invoice NumberDue Amount
INV-0001$1,000
Invoice Line ItemProductAmount
ILI-0001Bundle B1$1,000

Minimum Fee at Option Level

Consider the following bundle product configuration:

ProductCharge TypePer Unit PriceMonthly Minimum
Bundle B1Usage

Option O1Usage$1$300
Option O2Usage$2

Here, the monthly minimum is set at the option level. 

The usage consumption for the option products is as follows: 

Asset Line ItemQuantityPer Unit PriceRated Amount
Option O1200$1$200
Option O2300$2$600

As the rated amount for Option O1 is less than the monthly minimum charge of $300, an invoice is generated for $900 amount as follows:

Invoice
Invoice NumberDue Amount
INV-0001$9000
Invoice Line ItemProductAmount
ILI-0001Bundle B1$0
ILI-0002Option O1$300
ILI-0003Option O2$600