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In this page you can find an analysis of the Extra Charge as well as the means of imposing it to Subscriptions that are bought with the use of a Billing Frequency/Plan, in the platform. |
Billing Plans Extra Charge
By enabling the Billing Plans checkbox option, another relative informative field becomes available inside an account view page in BSS. This field, called Billing Plans Extra Charge, displayswhether there are applicable extra charges set from the distributor for offering Billing Plans to that BSS account.
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Billing Plans Extra Charge field This field displays the extra charge amount (whenever applicable) in percentage, and it is editable, meaning that the percentage number can be edited by clicking on it. |
More specifically, this field displays when a markup is set to the selling price of “subscriptions with installments” by a certain percentage. If a BSS account has a Billing Plan Extra Charge defined, then a subscription with a Billing Plan will have that Extra Charge applied to its unit price, and therefore it will be more expensive than a similar subscription without a Billing Plan because of the use of installments.
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Order Placement while Billing Plans Extra Charge is Configured If an Order is created with Extra Charge, then it’s locked and even if the account’s Billing Plans Extra Charge changes the Installments will be created with a marked up price. |
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Price Protection for Billing Plan Extra Charge The Billing Plan Extra Charge is saved in the subscription and follows the Price Protection rules, meaning that when a subscription is under price protection then the Extra Charge field does not change. |
Calculating Billing Plans Extra Charge
The way with which the calculation and billing implementation of a Billing Plan Extra Charge takes place is analyzed in the following example:
A Microsoft product has a sell base price of 10 € and a cost base price of 5 €. The BSS account has its Billing Plans enabled, and the Extra Charge configured to 50%. Now let’s assume that the BSS account has available three distinct pricelists.
Example Pricelist #1: Has a discount of -10% on the sell price.
Example Pricelist #2: Has a markup of +10% on the cost price.
Example Pricelist #3: Has a margin of +50% on the cost price.
Therefore, based on the previous information, during the ordering of the Microsoft product either from BSS or Storefront, we get the following calculation formulas based on the selected pricelist.
Calculation Examples based on Pricelists | Sell Price | Cost Price | Discount/Markup/Margin % | Extra Charge (Amount 50%) | Final Sell Price with Extra Charge |
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Resulting Formula based on Example Pricelist #1: | 10 € | 5 € | -10% Discount | 9€ x 50% = 4.5 € | Formula: 10(sell price) x 1.5(Extra Charge) x 0.9(Discount) = 13.5 € |
Resulting Formula based on Example Pricelist #2: | 10 € | 5 € | +10% Markup | 5.5 € x 50% = 2.75 € | Formula: 5(cost price) x 1.5(Extra Charge) x 1.1(Markup) = 8.25 € |
Resulting Formula based on Example Pricelist #3: | 10 € | 5 € | +50% Margin | 10 € x 50% = 5.0 € | Formula: 5(cost price) x 1.5(Extra Charge) x 2(Margin) = 15 € |
As a result of the above formulas, it is evident that the calculation and billing implementation of the Extra Charge amount is done on the Base Prices (be that sell or cost price). However, the result is the same even if you first calculate the discount, markups, or margins on either the sell or cost prices and then calculate the Extra Charge amount.
Please note that the Extra Charge amount is always calculated before any taxation is applied.
Managing Billing Plans Extra Charge on Multiple BSS Accounts
If you wish to manage the Billing Plans Extra Charge on multiple BSS accounts, you can find a new option called Manage Billing Plans Extra Charge, under the Actions button inside the List of Accounts in BSS. Essentially, this button enables BSS users to change the Billing Plans Extra Charge field of almost all accounts in bulk.
Depending on the BSS user's selection, this (Manage Billing Plans Extra Charge) action can change the percent value of the Billing Plans Extra Charge field on one or more accounts. Once the respective option is clicked, the following pop-up window appears, displaying the Billing Plans Extra Charge field in which the user can configure the extra charge percent number as well as three options in the form of buttons. These are the Update selected records, Update the whole list, and the Cancel.
Depending on the button, the following actions can take place:
Update selected records: The Extra Charge percentage number will take effect only on the accounts that were previously selected via their checkbox.
Update the whole list: The Extra Charge percentage number will take effect on all the accounts of the current view, meaning the whole list of accounts.
Cancel: The action gets canceled, and no changes occur on any BSS account in terms of the Extra Charge percentage number.
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The Manage Billing Plans Extra Charge action does not update:
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If the user has not selected an account and clicks the Update selected records button, then the following popup appears.
After a successful Billing Plans Extra Charge update, the following results message appears, displaying the results of the mass update in terms of the number of records (accounts) found and the number of records (accounts) that were changed.
👉 Click on Billing Frequency, to return to the main page of Billing Frequency.
👉 Click here, Billing Frequency in BSS, to continue to the BSS page of Billing Frequency.
👉 Click on Billing Frequency in Storefront, to continue to the Storefront page of Billing Frequency.
Table of Contents
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