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 Finance Application > Products and Pricing > Price Plans > Manage Price Plans

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Price plan rate models

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Rate Model

Application

Intended for Classifications

Calculation LogicExample
Flat RateA 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

  • Not cumulative
  • Price is that of the highest tier
  • If the quantity does not fall in a tier, the price is equal to the base rate.

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:

  • Access from one decoder is billed €10 (1*10)
  • Access from two decoders is billed €16 (2*8)
  • Access from three TV decoders is billed  €24 (3*8).
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

  • Not cumulative
  • Price is flat rate price of last/highest level tier
  • If the duration does not fall in a tier, the price is equal to the base rate.

An installation service is billed €10 for the first hour and €8 for each consecutive hour.

  • An installation that takes one hour is billed €10
  • An installation that takes two hours is billed €16 (2*8)
  • An installation that takes three hours is billed €24 (3*8).

 

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

 

  • Cumulative
  • Price is the sum of tiered rates, according to the purchased quantity
  • If the quantity does not fall in a tier, the price is equal to the base rate.

The price of an antenna is €10 for one and €8 for two or more.

  • One antenna is billed €10
  • Two antennas are billed €18 (10+8)
  • Three antennas are billed €26 (10+(8*2)).
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

  • Cumulative
  • Price is the sum of tiered rates, according to the duration of the service.
  • If the duration does not fall in a tier, the price is equal to the base rate.

An installation service is billed €10 for the first hour and €8 for each consecutive hour.

  • An installation that takes one hour is billed €10
  • An installation that takes two hours is billed €18 (10+8)
  • An installation that takes three hours is billed €26 (10+(2*8)).

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

  • Cumulative
  • Price is the sum of tiered rates, according to the duration of the subscription.
  • If the maturity does not fall in a tier, the price is equal to the base rate.

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.

  • A subscriber with an annual binding period will be billed €80 ((0*1)+(2*10)+ (3*20)) for the first six months and €120 (6*20) for the next six months.
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

  • Not cumulative
  • Price is that of the highest tier
  • The maturity is evaluated against the period for which the service will be rated.

A channel costs €10 when billed for 1 month, €50 when billed for 6 months and €90 when billed for a year.

 

Flat Rate, Maturity & Quantity Based

 

A combination of flat rate maturity and quantity.

Termed services

  • Not cumulative
  • Price is that of the highest tier
  • If the maturity or quantity does not fall in a tier, the price is equal to the base rate.

 

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:

  • Access from any number of decoders for the first month is free
  • Access from one decoder for the second month is billed €10
  • Access from two decoders for the second month is billed €16 (2*8)

Tiered Rate, Maturity & Quantity Based

 

A combination of tiered rate maturity and quantity.

Termed services

  • Cumulative
  • Price is the sum of tiered rates, according to the duration of the subscription.
  • If the maturity or quantity does not fall in a tier, the price is equal to the base rate.

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:

  • Access from any number of decoders for the first month is free
  • Access from one decoder for the second month is billed €10
  • Access from two decoders for the second month is billed €18 ((1*10)+(1*8))

 

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Main Information

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. 

  • Based on the agreement between the customer and company, the system can be configured to keep the rates from an expired price plan version effective (even if the price is adjusted to reflect a change in VAT).
  • Whenever a new price plan version is created, the expiration date of the current version is set equal to the effective date of the new version.

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.
When a base price plan is selected, 'Selection Conditions' and 'Validity Condition'
sections become available.

Note

Conditional price plans consist of a different set of rates (usually discounted) for the same products defined in a base price plan. These conditional rates are used for billing (instead of the base rates) provided the conditions defined in the plan are met. For example, customers are billed the conditional discounted rate, as long as their account receivable satisfies the defined requirement of VIP classification.

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:

  • Expenses
  • Termed services
  • One-time services
  • Physical goods.

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').

Note

If multi-country network is enabled in 'General Settings', then additional rates in other currencies can be specified. Same product can be defined multiple times as long as it is in a different currency.

Note

A UOT must also be defined for termed services. A fixed rate can be defined to apply for a specific period, e.g., 30 days, 3 weeks, 2 months, 1 year. The following values can be set depending on the selected UOT:

  • From 1 to 6 days,
  • From 1 to 4 weeks,
  • From 1 to 11 months
  • From 1 to 3 years

 

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:

  • Binding Start Date: On the date that the binding period begins (as specified in the Billing Terms).
  • Service Effective Date: On the date that the service will become effective.
  • Agreement Date: On the date that the customer accepted the Billing Terms.
Note
titleEffective Starting From Example

If 'Binding Start Date' is selected and you have a maturity model with 2 tiers, with tier 1 starting from the 1st month, then when the binding of a subscription is renewed, the rating will consider that the service is back to the 1st tier, even if it was activated 1 year ago.

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.

 

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:
  • A specific number which is valid up to a specific UOT
  • 'Unlimited', i.e., until the end of the customer's subscription
  • Binding period end, i.e., valid until the binding end date of the subscription (this option is only available in the tiered pricing of maturity based models).

Note

The unit for the From and To values may differ, subject to the selected rate model and UOT.

    • For tiered services whose base rate is defined in UOT, the fields refer to the defined UOT; e.g., the number of days or months.
    • For duration based one-time services defined as a UOT, the fields refer to the defined UOT; e.g., the number of days or months.
    • For quantity based physical goods, the fields refer to the number of items.

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.

Note

The price plan rate includes the price plan and product information. So for each rate, multiple additional rates can be specified as long as they are in a different currency.

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.

Note

The price plan rate includes the price plan and product information. So for each rate, multiple additional rates can be specified as long as they are in a different currency.

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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