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Finance Application > Products and Pricing > Price Plans > Manage Price Plans |
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Rate Model | Application | Intended for Classifications | Calculation Logic | Example |
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Flat Rate | A single fixed price. | Expenses | Price = Base rate | A €20 setup fee |
Flat Rate, Quantity Based
| A single fixed price based on purchased quantity, starting from a base rate, and adjusted as the quantity increases according to preset tiers. The purchased quantity of termed services depends on the number of service distributors. I.e., if the same channel is available from two different boxes, the quantity of the services is two. | Termed services, physical goods |
| A channel is accessible through several TV decoders (in different rooms). If the price for accessing the channel is €10 from one TV decoder and €8 from two or more, then:
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Flat Rate, Duration Based | A single fixed price based on the duration of the service, starting from a base rate, and adjusted as the duration of the service provided increases, according to preset tiers. | One-time services |
| An installation service is billed €10 for the first hour and €8 for each consecutive hour.
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Tiered Rate, Quantity Based | A price starting from a base rate, which can be progressively adjusted as the quantity increases, according to preset tiers. Each tier defines a quantity range and the rate for the product within that range. | Termed services, physical goods
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| The price of an antenna is €10 for one and €8 for two or more.
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Tiered Rate, Duration Based | A price starting from a base rate, which can be progressively adjusted as the duration required to provide the service increases, according to preset tiers. Each tier defines a duration range and the rate for the product within that range. | One-time services |
| An installation service is billed €10 for the first hour and €8 for each consecutive hour.
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Tiered Rate, Maturity Based | A price starting from a base rate, which can be progressively adjusted as the subscription matures, according to preset tiers. Each tier defines a period and the rate for the product in that period. | Termed services |
| A channel is free for the first month, €10 for the second and third month, and €20 for each consecutive month until the binding end.
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Flat Rate, Maturity Based | A price which changes according to the rated period, using a price table made up of multiple flat rates. (I.e. Prepaid: pre-rate period, Normal - billable period)
| Termed services |
| A channel costs €10 when billed for 1 month, €50 when billed for 6 months and €90 when billed for a year.
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Flat Rate, Maturity & Quantity Based
| A combination of flat rate maturity and quantity. | Termed services |
| A channel is accessible through several TV decoders (in different rooms). If channel access is free for the first month, and '€10 a month for one TV decoder' or '€8 a month for two or more decoders' for the second month onward:
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Tiered Rate, Maturity & Quantity Based
| A combination of tiered rate maturity and quantity. | Termed services |
| A channel is accessible through several TV decoders (in different rooms). If channel access is free for the first month, and '€10 a month for one TV decoder' or '€8 a month for two or more decoders' for the second month onward:
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Main Information | ||||||||||
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Code & Name: Price plan identifiers that are used interchangeably in the system and remain constant across versions. Version: Reflect price changes in specific periods for the same price plan. Type: 'Base' or 'Conditional', selected by the system when creating the price plan. The value is 'Conditional' if a price plan is defined in the base price plan field. Effective Date: The day from which the rates can be used for billing. A new effective date is automatically set for each version. Expiration Date: The day from which the rates can no longer be used for billing.
Base Price Plan: Used when creating a new conditional plan. If the conditions specified in the new conditional plan are not met during billing, the rates from the base plan are applied on subscriptions.
Accounts Receivable: The corporate customer account for which the price plan is used according to the pricing agreement. | ||||||||||
Rates Including information on the type and classification of the rated product | ||||||||||
Rates are grouped by (and can be filtered on) product classification. Products are classified as:
Code: Used by the system to identify rates. It is automatically generated and can be edited. Applicable only if part of a Bundle: Makes it possible to define a lower rate for the for termed service components of flexible bundle products when offered in a bundle. Rate Model: Available rate models depend on the classification of the product, as described in the Rate Model Table. Base Amount: The rate that is applied in the absence of tiered rates. UOT: The unit of measurement of the period during which the base or tiered amounts are applied, for termed and one-time services. Although the system can convert a monthly rate into a daily one, it is recommended that businesses that bill on a daily basis select a daily UOT. This produces more precise results than subsequently converting a monthly rate into a daily one. Currency in which the price plan's base rate is specified for the plan and product (cannot be the same as the system currency defined in 'Global Settings').
Effective Starting From (applicable for tiered rates of termed services): the date on which the rating period is considered to start again. The options are:
Tax Model: Define whether the base and tiered rates of the specified price plan are tax inclusive. By default, the tax model of the price plan is that which is defined in Tax Definition.
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Tiered Rates | Used to define a rate other than the base, for a particular period or quantity, depending on the selected rate model. Refer to the Rate Model Table for information on the application of tiered rates. Level: A number that determines the order in which levels are considered. From and To are the inclusive integer values that determine the range of each tier level (expressed in the defined UOT) One of the following can be defined for the 'To' field value:
Amount: The rate applied to the tier level. | |||||||||
Selection Conditions (For conditional plans only) | ||||||||||
Conditions that are used to validate whether the price plan can be selected for a subscription or a job. | ||||||||||
Validity Conditions (For conditional plans only) | ||||||||||
Conditions that are used to determine if the price plan rates can be applied during billing. Billing will revert to the respective base price plan rates if any condition in the conditional price plan is breached. | ||||||||||
Additional Price Plan Rates (Base rates in currencies other than the system default) | ||||||||||
The rates of each price plan can be specified in as many currencies as necessary, but each additional rate can be specified only once per price plan and currency. Price Plan Rate for which additional rates in other currencies are specified.
Base Rate: the price of the product in the specified currency. Currency in which the price plan's base rate is specified for the plan and product (cannot be the same as the system currency defined in 'Global Settings'). | ||||||||||
Additional Price Plan Tiered Rates | ||||||||||
The rates of each price plan can be specified in as many currencies as necessary, but each additional rate can be specified only once per price plan and currency. Price Plan Rate: the tiered rate for which additional tiered rates in other currencies are specified.
Tiered Amount: the price of the product in the specified currency. Currency for which the tiered rate is specified. | ||||||||||
Allowed Organisational Units | ||||||||||
Organisational units that are authorized to select and assign the price plan on billing term schemes, subscriptions, and jobs. |
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Calculating the price of termed services for specific periods
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When a rate is provided for a termed service over a specific period (e.g., 2 weeks), the following steps are used to calculate the price:
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