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Excerpt
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Understand the usage of Buy in In Advance within CRM.COM

What does this section cover?

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What are Buy in
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Table of Contents

Table of Contents

What is Buy In Advance?

The Buy In Advance feature provides subscribers with the possibility to be billed for a period longer than that of their normally contracted billing frequency or prepaid/pre-rated period, in exchange for a discount.

Billing Frequency applies to Subscriptions with Normal Billing Term Schemes and Prepaid / Pre-rated period applies for Subscriptions with Prepaid Billing Term Schemes. 

Note

  Buy In Advance can be applied to a Prepaid/Pre-rate subscription from CRM.COM R9.0.0 and onwards

Buy In Advance Glossary

Normal billing is a are charged for those services
TermDescription
Buy In Advance RequestA request made from customers to be billed for a longer period than that in their contract.
Normal Billing - Post Bill

A billing mechanism

which is used in cases

where customers

start using

use the services

that were

they subscribed to or were delivered to them

,

and

by

are charged at the end of their billing frequency period.

Normal Billing - Pre-BillA billing mechanism where customers are billed in advance for the services they subscribed to.
Prepaid / Pre-rated Billing  A billing mechanism where customers pay in advance for the services they are subscribed to before starting to use them. The period for which they will be billed in advance is pre-configured in the system for each service individually.
Price PlanA set of price plan rates used to bill an account receivable Accounts Receivable based on the transactions that were performed on behalf of the account receivable ownerholder.
Auto-Applied DiscountsAuto apply discounts are A mechanism used to automatically provide discounts , on top of any addition to agreed price plan offers, based on conditions related associated with the customer’s account receivable, but also what the customer has ordered or subscribed toAccounts Receivable, their orders and Subscriptions.
Ad Hoc DiscountsAd hoc discounts are A mechanism used to provide discounts on an ad hoc basis, following some predefined business rules and restrictions.

 

Buy

in

In Advance Key Processes and

Concepts

Concepts 

 

Processes / ConceptDescription

EXAMPLE

Allocation Process & Allocation Principles

EXAMPLE

The allocation process is used to allocate credit transactions against debit transactions to settle them.
The allocation process is an automated process triggered every time a financial transaction becomes 'Posted'.
Within CRM.COM, you have the option to select between one of 2 main allocation process principles, that will be applied to all financial transactions within the system;

  • FIFO :Where a credit is allocated against the oldest available (non-allocated) debit automatically
  • FIFO & Against Item :Where a credit is allocated first against a designated debit and any remaining amount is allocated FIFO
  

Buy in Advance Network Characteristics

Billing Rating process if a Buy In Advance Request exists for a Normal Subscription

If a Buy In Advance Request exists for a Normal Billing term scheme Subscription, then the Normal Billing Run process will consider the duration specified on the request during the calculation of the period to be rated, instead of considering the billing frequency specified on the Subscription’s Billing Terms, unless the billing frequency period is greater than the duration specified on the Buy In Advance Request.

 

Billing Rating process if a Buy In Advance Request exists for a Prepaid Subscription

 

If a Buy In Advance Request exists for a Prepaid Billing term scheme Subscription, and there is at least one pre-rated service on this subscription, then the Prepaid Billing Run process will consider the duration specified on the request during the calculation of the period to be rated, instead of considering the pre-rated service period specified on the Subscription’s Billing Terms, unless the billing pre-rated period is greater than the duration specified of the Buy In Advance Request.

Note
  • The Wallet balance must be enough to pre-rate all of the pre-rated services according to the Buy In Advance request time
  • If the Wallet balance is not enough to cover ALL services, then the Buy In Advance Request is automatically cancelled, and the subscription is billed based on the pre-rated period defined on the billing term scheme
Note

Status
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titleAvailable from CRM.COM R12.0.0
Buy in Advance Requests can also be submitted on a Prepaid Subscription applied only on specific Pre-Rated Services instead on the whole Subscription.

Buy In Advance and Additive Discounts relation

Buy In Advance can be used along with promotional offers, to encourage customers to pay up front for a long period in exchange for a discount. In CRM.COM Additive Discounts can be combined with Buy In Advance, offering the customers either a discount on the total amount or free periods.

When the Billing Engine bills Buy In Advance Requests, it also checks for related Additive discounts. For example, if a 12 month Buy In Advance Request is submitted, which is eligible for three free months, then the subscription will be billed for 12 months, of which the first three months will be free and next nine will bill based on the agreed rate.

Placing Buy In Advance Requests in listsCustomers with Buy In Advance Requests can be added to lists (known as 'segments' in CRM.COM). These lists can be used throughout the software in batch processes as conditions, to perform additional functions.
For example, lists can be created for all customers with Buy In Advance Requests close to their expiration date, so that they can be notified and suggested a possible renew.
This can be effected by including the segment in a Notification Run, using a Communication Template

Buy In Advance Access & Viewing Controls

Business Network Characteristics define the level of access for each recordentry. i i.e. Whether whether it will be available for selection, for viewing or editing etc.editing 

Buy in

 

EXAMPLE

EntityNetwork Characteristics
Accounts Receivable Classifications 

 

Buy in Advance Related Modules

Interaction EntityHow      

 

Description
Buy In Advance DefinitionsGlobal Viewing EntitiesBuy In Advance Definitions have no access restrictions. They can be viewed and selected by all users.
Buy In Advance RequestsImplicit Viewing Access EntitiesBuy In Advance Requests can be accessed viewed and modified by users that belong to the Group defined at the Owned By Group of the related Subscription, or that belong to a group that collaborates with the specified group or by Super Users

 

Buy In Advance Related Modules

EntityInteraction of Buy In Advance with the Entity
Rated Billing ItemsBuy In Advance is included and rated by the Rated Billing Item
Additive DiscountsDefine the discounted price, via Additive Discounts, based on the Buy In Advance period
SubscriptionsRequest Buy In Advance for a Subscription
SegmentationSegments can be created based on Buy In Advance Requests

 

Buy In Advance - Business Examples

The following section provides business examples to help you understand of how the CRM.COM Buy in In Advance module is used.

Title of the Business example

Annual Buy In Advance Offer 

More Information on Specific modules can be found at:

Aluxsat Co. as part of its Winback strategy, offers three months free to customers willing to be billed for a whole year up front. The offer is only available to customers that have subscribed to Subscription Type: Gold

CRM.COM solution

  • Buy In Advance Definition Set up
    Configure the definition with the following settings:

    • Duration: From 12 months - To 12 months 

Panel
nameblue
titleProvide a title for the business example. (Keep simple and short)Buy in Advance Requests for Normal Subscriptions

Business RequirementCompany ZX .......

 

CRM.COM Solution

...........

  • Configuration
  • User Process

 

Note
Duration FromDuration ToUOTConditions
1212MONTHSSubscription Type: GOLD

 

 

  • Additive Discounts Definitions
    Configure an Auto Apply Definition with the following settings:

    TypeClassificationAmount /Free PeriodValidityDurationNumber of Applied DiscountsCriteria
      Free PeriodEffectiveExpirationEffective From Buy In Advance
    Auto ApplySubscription3 months01/01/201501/01/2020Agreement DateOnceFrom: 12 To: 12 UOT: Months
    • User Processes
    1. User should navigate to Subscriptions Data Entry page
    2. Action: SUBMIT Buy In Advance REQUEST

    3. Provide the following information:

      DurationUOTBilling Effective Date
      12monthsLast Rated Date of the subscription

    4. Submit the Request

    5. View the Request at View Subscription History page
    6. Use action: BILL SUBSCRIBER
      1. Bill from Last Rated Date
      2. Submit the action

    Result: The system will bill the Subscription for a year, offering the three first months for free.

     

     

    Application of Buy In Advance Requests During Billing

    Panel
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    titleApplication of Buy in Advance

    Find some examples below, of how the System will react to the Buy In Advance Request Start Date and the Subscriptions Billable Period Dates

    • Example 1
      • Subscription will be billed from 01/01/16 to 01/02/16
      • Buy In Advance Request exists from 01/02/16 to 01/04/16
        • Subscription will be billed starting from 01/01/16 up to 01/04/16
    • Example 2
      • Subscription will be billed from 01/01/16 to 01/02/16
      • Buy In Advance Request exists from 30/01/16 to 30/03/16
        • Subscription will be billed starting from 01/01/16 up to 30/03/16
    • Example 3
      • Subscription will be billed from 01/01/16 to 01/02/16
      • Buy In Advance Request exists from 02/02/16 to 02/04/16
        • Subscription will be billed starting from 01/01/16 up to 01/02/16
    • Example 3
      • Subscription will be billed from 01/01/16 to 01/04/16
      • Buy In Advance Request exists from 01/02/16 to 01/04/16
        • Subscription will be billed starting from 01/01/16 up to 01/04/16 
        • Buy In Advance Request will be ignored

     

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