interworks.cloud Platform employs a highly sophisticated billing engine in order to reflect a variety of billing scenarios for your customers. Billing settings can be configured on Account level and Product level, defining the charges on the invoices issued by the system for subscription-based products and services. The article below will explain the available billing options, and how they can be configured to support specific billing scenarios.
The 'Accounts' module carries the most basic billing settings. These settings govern the general billing behavior of the system with regards to the charges that will be calculated as a result of any action the Account is going to make. The available options for the Accounts can be found at the 'Enable Ordering' section and are the following:
Some basic billing settings for subscription-based products lay on the 'Products' module. Those can be found at the 'Pricing' section:
For all examples below we assume that the customer purchases the product Office 365 Business Premium that costs 10€ / seat/month |
The customer has a billing cycle day set to 1st of the month, it's billed only on the 1st of the month and he purchases a service that is billed at the end of each billing period.
Account Billing Settings | Product Pricing Settings |
---|---|
Enable Prorate Billing: Yes Billing Day: 1st of Month Partial Charges Invoicing: Billing Day | Usage Charge Rule: Charge for Partial Billing Period Exclude from pro-rata: No Upfront Billing: No |
The 1st purchase for 5 seats takes place within the billing period. The subscription life-cycle looks like this:
On the first billing day (1st May) the generated invoice will carry the charges for the 16 days that the service was used in April. The invoice of the 2nd billing day will carry the charges for May
Quantity | Billing Period | Unit Price | Total |
---|---|---|---|
1st May Invoice | |||
5 | 15/04/2016 - 30/04/2016 | 5.33€ | 26.67€ |
1st June Invoice | |||
5 | 01/05/2016 - 31/05/2016 | 10.00€ | 50.00€ |
The 1st purchase for 5 seats takes place on the 15th of April and there is a second purchase for 3 seats on the 25th of April.
On the first billing day (1st May) the generated invoice will carry the charges for the 1st purchase product quantity for the 16 days plus the extra quantity of the 2nd purchase for the 6 days until the end of April. The invoice of the 2nd billing day (1st June) will carry the charges for the total quantity of the subscription for May
Quantity | Billing Period | Unit Price | Total |
---|---|---|---|
1st May Invoice | |||
5 | 15/04/2016 - 30/04/2016 | 5.33€ | 26.67€ |
3 | 25/04/2016 - 30/04/2016 | 2.00€ | 10.00€ |
1st June Invoice | |||
8 | 01/05/2016 - 31/05/2016 | 10.00€ | 80.00€ |
The customer has a billing cycle day set to 15th of the month, it's billed only on the 15th of the month and he purchases a service that is billed at the end of each billing period.
Account Billing Settings | Product Pricing Settings |
---|---|
Enable Prorate Billing: Yes Billing Day: 15th of Month Partial Charges Invoicing: Billing Day | Usage Charge Rule: Charge for Partial Billing Period Exclude from pro-rata: No Upfront Billing: No |
The 1st purchase for 5 seats takes place on the 20th of April and there is a second purchase for 3 seats on the 5th of May.
On the first billing day (15th May) the generated invoice will carry the charges for the 1st purchase product quantity for the 26 days plus the extra quantity of the 2nd purchase for the 11 days until the end of billing period. The invoice of the 2nd billing day (15th June) will carry the charges for the total quantity of the subscription for the billing period (15th May - 14th June)
Quantity | Billing Period | Unit Price | Total |
---|---|---|---|
15th May Invoice | |||
5 | 20/04/2016 - 14/05/2016 | 8.67€ | 43.33€ |
3 | 05/05/2016 - 14/05/2016 | 3.54€ | 10.62€ |
15th June Invoice | |||
8 | 15/05/2016 - 14/06/2016 | 10.00€ | 80.00€ |
The customer has a billing cycle day set to 15th of the month, it's billed only on the 15th of the month and he purchases a service that is billed at the beginning of each billing period.
Account Billing Settings | Product Pricing Settings |
---|---|
Enable Prorate Billing: Yes Billing Day: 15th of Month Partial Charges Invoicing: Billing Day | Usage Charge Rule: Charge for Partial Billing Period Exclude from pro-rata: No Upfront Billing: Yes |
The 1st purchase for 5 seats takes place on the 20th of April and there is a second purchase for 3 seats on the 5th of May.
On the first billing day (15th May) the generated invoice will carry the charges for the 1st purchase product quantity for the 26 days (20th April - 15th May) plus the extra quantity of the 2nd purchase for the 11 days until the end of billing period (5th May - 15th May) plus the charges for the total quantity for the next billing period(15th May - 14th June)
Quantity | Billing Period | Unit Price | Total |
---|---|---|---|
15th May Invoice | |||
5 | 20/04/2016 - 14/05/2016 | 8.67€ | 43.33€ |
3 | 05/05/2016 - 14/05/2016 | 3.54€ | 10.62€ |
8 | 15/05/2016 - 14/06/2016 | 10.00€ | 80.00€ |
15th June Invoice | |||
8 | 15/06/2016 - 14/07/2016 | 10.00€ | 80.00€ |