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Learn to work with Additive discounts |
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On this page
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Overview
Additive discounts provide price reductions on subscriptions (normal and prepaid) and jobs. The discounts are additional to the rates granted to customers through price plans and can be applied by agents or automatically.
Additive discount functionality
- Multiple discounts (expressed as amounts or percentages) can be applied simultaneously.
Auto apply discounts do not require an agent. They are applied during billing, subject to conditions.
Ad hoc discounts are selected by agents and are applied if conditions established in the additive discounts definition are met.
Ad hoc discounts carry less risk than auto apply discounts, as they can be set up to require approval by management personnel before billing.
Setting Up Additive Discounts
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Additive Discounts - The Basics
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Additive Discounts - The Advanced
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Additive Discounts - The Admin Stuff
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| Finance > Product & Pricing > Additive Discounts > Set Up Business Definitions |
Business definitions
Business definitions is used to create additive discounts applied to subscriptions and jobs. The discounts are either automatically applied during billing (auto apply) or selected and added by users (ad hoc).
The same discount definition configuration entity is used for subscriptions and jobs. Once the classification (subscription or job) is selected in the Data Entry page, the system displays the appropriate sections and fields. The manual describes each classification in a separate table.
The following diagram shows how each business need is mapped on an additive discount definition.
Anchor jobs jobs
Job discount definition fields
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The table describes the sections of the Additive Discount Definitions Data Entry page for jobs and explains how the fields in the page are used.
Mandatory Configurable
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Type: Available for selection by agents (Ad Hoc) or provided automatically during billing (Auto Apply). Classification: Select 'Jobs'. Life Cycle State: Only 'Effective' definitions can be selected and applied. | |
Discount Settings Determine the amounts, validity and products. | |
| Discount | Discount Amount Type: Select between 'Percentage' and 'Amount'. Range: For ad hoc discount, users can define an amount or percentage range. Discount/Percentage: Either the discount amount or the percentage value of the discount. Discount Level (1-3): Used where the discount is expressed as a percentage when more than one discount is applicable. The level determines the order in which each discount is applied:
Discounted Products: Select products or product types that can be offered with an additive discount. Products that are also offered as components of flexible bundles can be discounted when purchased as part of a specific bundle. One-time services, expenses and physical goods (traceable and non-traceable) can be added to the list. |
| Validity | Fixed effective and expiration dates during which additive discounts can be offered. |
| Approval Settings (for ad hoc) | A safeguard against the arbitrary discounting of subscriptions. |
Discount Criteria A list of criteria that should be met for a discount to be applied (for auto apply) or made available for selection (for ad-hoc). Criteria from multiple sections and tabs must all be met. If multiple criteria are defined (such as two account classifications) from a single tab then at least one must be met. | |
| Billing Term | Billing Term Schemes: For ad hoc discounts, only schemes with a 'Flexible Pricing' Discount Option can be specified. Concurrent Usage: Defines the required threshold value for a discount to be applicable to a job, using inclusive 'More than' and 'Less than' parameters. Concurrent Usage Rate Percentage: Defines the required percentage threshold for a discount to be applicable to a job, using inclusive 'More than' and 'Less than' parameters. Billing Term Effectiveness: Defines periods (before, after or between specified dates) that serve as criteria for the application of a discount. The available options can be combined and are the following:
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| Job | Job Type (list) Job Effectiveness: Defines periods (before, after or between specified dates) on which the job was initiated (Job Start Date) or expected to be completed (Job Expected Completion Date) that serve as criteria for the application of a discount. |
| Accounts Receivable | The accounts receivableClassifications, Payment Preferences, andPresentment Preferences that serve as criteria for the application of a discount. |
Segment (associated with accounts receivables and jobs) | Included Segment: A list which can be selected and used to filter the jobs that can get the discount. Excluded Segment: A list which can be selected and used to exclude jobs from getting the discount. |
| Price Plan | Plans to which the additive discount is applied. |
Product | Specific Products or Product Types that should be present on a job for the discount to be applicable. If more than one condition is specified, then all should be met. One-time services, expenses and physical goods (traceable and non-traceable) can be added to the list. |
Allowed Organisational Units (for ad hoc discounts only) | |
| The organisational units that the logged in user must belong to so that the discount can be added to a job. | |
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The table describes the sections of the Additive Discount Definitions Data Entry page for subscriptions and explains how the fields in the page are used.
Mandatory Configurable
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Type: Available for selection by agents (Ad Hoc) or provided automatically during billing (Auto Apply). Classification: Select 'Subscriptions'. Applied Service Type: Defines whether auto apply discounts will be applied on 'Usage', 'Non-Usage' or 'Any' service type, which determines which set of criteria must be specified. Life Cycle State: Only 'Effective' additive discount definitions can be applied. | ||||||
Discount Settings Determine the amounts, validity period, products and how many times the discount can be applied. | ||||||
| Discount | Discount Amount Type: Select between 'Amount', 'Percentage' and 'Free Period'. Range: For ad hoc, users can define an amount, percentage or period range. E.g., if a 2 to 6 month range is entered, then the agent can offer 2 to 6 months on the subscription for free. A range must be entered instead of a single value when the field is enabled. Discount: Expressed as an amount or percentage, depending on the Discount Amount Type. If set to 'Free Period', then a UOT is used to determine the period for which the subscription will not be charged. E.g., if the discount is '2' 'Months' and the customer is billed yearly, then the customer will be billed for 10 months. Discount Level (1-3): Used where the discount is expressed as a percentage when more than one discount is applicable. The level determines the order in which each discount is applied:
Number of applied discounts: Determines whether the discount can be offered to the subscription only once or a specific number of times or unlimited times. Optionally define the period in which the specific number of times can be applied.
(E.g., where period = '1 year' and the specific number of times = '2', the discount will be applied twice a year).
Discounted Products: Select products or product types that can be offered with an additive discount. Products that are also offered as components of flexible bundles can be discounted when purchased as part of a specific bundle. Termed, usage and expense services can be added to the list.
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| Validity | Fixed effective and expiration dates during which additive discounts can be offered. | |||||
| Duration | Determines how long the discount should be applied for, once it is added to a subscription. The following options are available:
If the 'Flexible Effective' or 'Flexible Expiration' date options are selected, the following restrictions can be defined:
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| Approval Settings (for ad hoc) | A safeguard against the arbitrary discounting of subscriptions. Enable Requires Approval and define the users or units authorized to approve discounts on jobs. | |||||
Non Usage Discount Criteria A list of criteria not related to usage services that should be met for a discount to be applied (for auto apply) or made available for selection (for ad-hoc). Criteria from multiple sections and tabs must all be met. If multiple criteria are defined (such as two account classifications) from a single tab then at least one must be met. | ||||||
| Billing Term | Billing Term Schemes: For ad hoc discounts, only schemes with a 'Flexible Pricing' Discount Option can be specified. Billing Frequencies Binding Periods Concurrent Usage: Defines the required threshold value for a discount to be applicable on a job, using inclusive 'More than' and 'Less than' parameters. Concurrent Usage Rate Percentage: Defines the required percentage threshold for a discount to be applicable on a job, using inclusive 'More than' and 'Less than' parameters. Billing Term Effectiveness: Defines periods (before, after or between specified dates) that serve as criteria for the application of a discount. The available options can be combined and are the following:
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| Subscription | Subscription Type (list) Subscription Maturity: The discount will be applied to subscriptions that were not interrupted (rested or deactivated) for a specific period, or were interrupted for a limited time defined by the Maximum Interruption Threshold. Subscription Effectiveness: Defines periods (before, after or between specified dates) on which the subscription and/or its services became effective, that serve as criteria for the application of a discount.
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| Accounts Receivable | The accounts receivable Classifications, Payment Preferences, andPresentment Preferences that serve as criteria for the application of a discount. | |||||
| Segment | Segments associated with accounts receivable and subscriptions are available. Included Segment: A list of segments that can be selected and used to filter the jobs that can get the discount. Excluded Segment: A list of segments that can be selected and used to exclude jobs from getting the discount. | |||||
| Price Plan | Plans to which the additive discount is available. | |||||
| Product | Specific Products or Product Types that should be present on a subscription for the discount to be applicable. If more than one condition is specified, then all should be met. Belongs in Bundle: Products that (in addiction to stand-alone) are also offered as components of flexible bundles can be used as conditions for discounts when purchased as part of a specific bundle. E.g., a discount will be applicable if the customers subscribes to Movies 1 (product) as part of the Gold package (flexible bundle). Termed, usage and expense services can be added to the list. | |||||
Buy in Advance Request | Defines a set of duration ranges that are eligible for the additive discount. For each range, provide a From and To duration and the UOT in which the duration is measured (days, weeks, months or years). | |||||
Usage Discount Criteria Criteria related to subscriptions with services billed based on their usage, such as PPV, VOD and games and are provided through Usage Service Catalogs. | ||||||
| Service | Defines a list of Usage Service Catalogs, Usage Service Types, andTermed Services that should be related to the rated usage services for the discount to be applicable. | |||||
| Usage | Defines a list of Usage Methods, Devices, Source Categories andDestination Categories available on the ordered rated usage services for the additive discount to be applicable. | |||||
| Quantitative | Date of Execution: Defines an inclusive range using 'From' and 'To' dates, during which rated services should be used to be eligible for the discount. The discount does not expire if nothing is defined in the 'To' field. Day of Execution: Defines days of the week and a time range for each day, during which rated services should be used to be eligible for the discount. Total Quantity (range per UOT): Defines the total quantity range for each Unit of Time (UOT). UOT values can be 'Days', 'Months', 'Years' or 'Unlimited' (not evaluated for a specific period). The total number of rated usage services that were applied within the specified UOT (starting from the date of billing) should fall within the specified range to be eligible for the discount. Total Usage (range per UOT): Defines the total usage range for each Unit of Time (UOT). UOT values can be 'Days', 'Months', 'Years' or 'Unlimited' (not evaluated for a specific period). The total number of rated usage services that were applied within the specified UOT (starting from the date of billing) should fall within the specified range to be eligible for the discount.
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Allowed Organisational Units (for ad hoc discounts only) | ||||||
| The organisational units that the logged in user must belong to so that the discount can be added to a subscription. | ||||||
Related configuration areas
Mandatory modules must be configured for the additive discounts module to work.
Optional modules may be configured for the additive discounts module to operate at its full capacity.
| Module Link | Area | Description | |
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| Billing Term Schemes | Billing Term Schemes must have the Discount Option field set to 'Flexible Pricing' in order for the discounts to be applied. | Mandatory | |
| Buy in Advance | Buy in Advance Definitions | Configure Buy in Advance definitions that will be used as criteria for setting up subscription discounts. | Optional |
Using Additive Discounts
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| Finance > Product & Pricing > Additive Discounts > Manage Ad Hoc Discounts |
Automatically applied discounts (Auto apply) are visible in the system once the billing run is completed and not through the Manage Ad Hoc Discounts page. Discounts selected by agents (Ad Hoc) can be viewed, edited, canceled and approved from a dedicated screen and viewed at the Subscriptions and Jobs Data Entry pages. Once an ad hoc or auto apply-discount is included in the billing run and applied to a job or a subscription, it is labeled as 'Applied' and becomes available from the Jobs, Subscriptions, and Rated Billing Items Summary and Data Entry pages.
The table displays the discounts available across the system.
| Discount Type | Ad Hoc Discounts (Requests created for discounts) | Applied Ad Hoc Discounts (Requested discounts applied) | Applied Auto Apply Discounts (Discounts automatically applied) |
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| Subscription Summary Page | Not available | Billing Information > Bill Items > Lines > Rated Billing Items > Applied Ad Hoc Discounts (View) | Billing Information > Bill Items > Lines > Rated Billing Items > Applied Auto Apply Discounts (View) |
| Subscription Data Entry Page | View Subscription History | View Subscription History | View Subscription History |
| Jobs Summary Page | Not available | Billing Information > Bill Items > Lines > Rated Billing Items > Applied Ad Hoc Discounts (View) | Billing Information > Bill Items > Lines > Rated Billing Items > Applied Auto Apply Discounts (View) |
| Jobs Data Entry Page | Not available | Not available | |
| Rated Billing Items Summary Page | Not available | Applied Ad Hoc Discounts (View) | Applied Auto Apply Discounts (View) |
| Rated Billing Items Data Entry Page | Not available | Applied Ad Hoc Discounts Tab | Applied Auto Apply Discounts Tab |
| Manage Ad Hoc Discounts | Not available | Not available |
Ad hoc discount fields
The table describes the sections of the Ad Hoc Discounts Data Entry page and explains how the fields in the page are used.
Creating and processing additive discounts
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Validations take place before an action is initiated (prerequisite) or after it is submitted (postcondition). |
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- Navigate to Subscriptions and go to the Data Entry page of the subscription you want to discount.
From the Action panel click on Subscription Related Actions > Provide Ad Hoc Discount to open the Ad Hoc Discount modal.
Discount Definition
From the drop-down list select a discount to apply.
Click on View Ad Hoc Discount Definitions to access the discount definition Data Entry Page and review discount details.If a range has been defined in the discount definition, then one of the following discounts must be defined:
(Minimum and Maximum Allowed values are provided by the Tool Tip).- Discount Amount to be applied
OR - Discount Percentage to be applied
OR - Free Period
- Discount Amount to be applied
Applicable Dates
Applicable From
- Applicable ToThe dates will be 'read-only' unless a 'Flexible Date' option has been defined.(If dates for the application of the discount must be selected, allowed dates will be made available in the tooltip).
Apply On
Select whether the discount should be applied to 'All Products' (as defined in the discounted products of the definition) or to 'Specific Products' to be selected by the agent.
Discounted Products (available only if the 'Specific Products' option is selected)
Select the products that should be discounted.
(The discount will only be applied to the products that are defined in the list of discounted products of the additive discount definition even if more are selected).
- Click on SUBMIT.
Prerequisites | The life cycle state of the subscription must not be 'Regretted or 'Cancelled'. The billing term scheme of the subscription must allow 'Flexible Pricing'. |
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- Navigate to Jobs and go to the Data Entry page of the job you want to discount.
From the Action panel click on Action > Prove Ad Hoc Discount to open the Ad Hoc Discount modal.
Discount DefinItion
From the drop-down list select a discount to apply.
Click on View Ad Hoc Discount Definitions to access the discount definition Data Entry Page and review discount details.If a range has been defined in the discount definition, then one of the following discounts must be defined:
(Minimum and Maximum Allowed values are provided by the Tool Tip).- Discount Amount to be applied
OR - Discount Percentage to be applied
- Discount Amount to be applied
Apply On
Select whether the discount should be applied to 'All Products' (as defined in the discounted products of the definition) or to 'Specific Products' to be selected by the agent.
Discounted Products (available only if the 'Specific Products' option is selected)
- Select the products that should be discounted.
(The discount will only be applied to the products that are defined in the list of discounted products of the additive discount definition even if more are selected).
- Select the products that should be discounted.
- Click on SUBMIT.
Prerequisites | The life cycle state of the job must be 'Draft', 'Pending' or 'In Progress'. The job type must be defined as billable. The job must not have been billed yet. The billing term scheme of the job must allow 'Flexible Pricing'. |
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Modifying an ad hoc discount
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Use EDIT from the Actions menu to update discounts that have not yet been approved. The fields that can be updated are the following:
- Provided By
- Provided On
- Discount Amount
- Discount Percentage
- Discount Free Period
Prerequisites | The life cycle state of the discount must be 'Pending Approval'. |
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Anchor approve approve
Approving an ad hoc discount
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Ad hoc discounts are approved automatically or require approval, depending on the configuration of the discount definition. Discounts are not processed by billing unless they are approved, protecting the company from the arbitrary use of discounts by agents.
Designated users or units are allowed to approve discounts.
The life cycle state of an ad hoc discount reflects whether an approval is required (Pending Approval). To approve an ad hoc discount:
- Navigate to the ad hoc discounts Data Entry page.
- Click on APPROVE from the Actions menu.
Prerequisites | Users or units designated in the approval settings of the discount definition can approve the discount. |
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Approved discounts can be canceled before billing.
To cancel an ad hoc discount click on CANCEL from the Actions menu.
Prerequisites | The life cycle state of the discount must be 'Pending Approval' or 'Approved'. |
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| Postconditions | The discount has not been processed by the billing engine. |
Applying multiple discounts
Multiple discounts can be applied to a job or subscription simultaneously. Subscriptions benefiting from a free period discount are not subject to other discounts.
Multiple discounts expressed as amounts are aggregated and deducted from the total billed amount.
Discounts expressed as percentages are applied in the order determined by user-defined levels, as the order affects the total discount amount.
Up to three discount levels (1-3) can be defined for ad hoc percentage discounts.
- The percentage of auto apply discounts of the same level is summed and the total is applied.
- Percentage discounts are applied in order of ascending level.
- For discounts of the same level, discounts are applied in series.
Additive Discounts Analytics
Reports
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Additive discounts information can be extracted in a structured format for analysis. The additive discounts on subscriptions and jobs included in the report are selected and grouped based on user-defined criteria. Users can select the fields displayed in the report.
Refer to Reports for information.
Applied additive discounts report
Additive Discount Business Examples
Subscription related ad hoc discount definition
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Scenario 1 Company ZX requires agents to have access to a selection of discounts to offer customers with serious complaints. Discounts should:
Solution
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Job-related ad hoc discount definition
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Scenario 2 Customers are charged a service fee on installations. Installations can take up to two working weeks but can sometimes take longer (i.e., the technicians are unable to perform them on time). Customers that call and make a formal complaint are eligible for a 50% discount on the installation service fee. The customer center supervisor should confirm such discount before they are applied on the bill. The discount should only be available until 31/12 as the business revises its business rules on a yearly basis. Agents should be able to add the discount on the job before billing it. Solution
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Job-related auto apply discount Definition
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Scenario 3 Customers are charged a service fee on installations. Installations can take up to two working weeks but can sometimes take longer (i.e., the technicians are unable to perform them on time). Customers that call and make a formal complaint are eligible for a €20 discount on the installation service fee. Provided that the conditions are met, the discount should be applied on the job automatically. Solution
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Glossary
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| Subscription | A selection of customer services billed on a recurring, usage or one-time basis. |
| Job | A small project initiated by the operator for customers, involving the delivery and billing of services, products and activities. Customer requests and orders, such as that for a new subscription, can be initiated and registered through a job. |
| Product Bundle | A combination of component products offered for sale as one product. Flexible product bundles have a variable selection of constituent products as components. Fixed product bundles have a fixed selection. |
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Related Links
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