Overview

Price plans are the set of rates at which a company offers goods and services.  The plans are used by the billing engine to charge customer accounts receivables for purchases. 

Every billable product that is added to a subscription, job or activity must belong to at least one price plan, with the exception of usage services whose rates are defined in Usage Service Catalogs. 

Price plans functionality 

• Suitable for promotions and discounting; Price plans can be subject to conditions that result in special rates (such as discounts for employees).
• Ideal for making price reductions; rates that are lower than the base rate can be defined for a specific period or purchase quantity.
• Simplify overall price adjustments when tax rates change.
  
  

Setting Up Price Plans

Price plan rate models

The classification of each product determines the rate models available when adding a product to a plan.  Billing handles each model differently.

 Products are classified as:

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

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Price plan fields

The table describes the sections of the Price Plans Data Entry page and explains how the fields in the page are used.

 Mandatory   Configurable

Related configuration areas

Mandatory modules must be configured for the Price Plan module to work. 

Optional modules may be configured for the module to operate at its full capacity.

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Using Price Plans

Several 'Effective' price plans can be present in the system. A price plan is selected when a subscription or job is created, reflecting the customer's terms of agreement. 

Conditional price plans, if available, can be selected by users subject to 'Selection Conditions'. Whether the selected plan is used during billing depends on the price plan's 'Validity Conditions'.

Selecting and creating a price plan

Specify the criteria that match the price plan you are interested in or use NEW from the Actions menu to create a new plan.  Provide the information defined as mandatory in the price plan fields table and SAVE the plan.

Editing a price plan

Use EDIT from the Actions menu to edit price plans that have been created but not yet added to a subscription or job. You can add, remove or edit product rates and information already defined in a plan. Use the respective actions to add new product rates or amend price plans that are already in use by subscriptions or jobs.

Amending existing price plan rates

As a general rule, price plans that are already in use cannot be modified, as the company and customer agreed the plan rates when the subscription or job was created. 

In exceptional cases it is possible to amend a plan, for example, to reflect a change in VAT or in rates across all contracts. When a price plan is updated, a new version of the plan is created including the previously defined products and rates.

Customers with updated price plans will be billed using the new rates (by default).  

1. Find the price plan to amend and from its Data Entry page, click Replace in the Actions menu to open the Replace Price Plan modal.
   1. Define the New Price Plan's Effective Date.
   2. Input the percentage by which all price plan rates should be adjusted under Adjust Rates by '%', or leave field empty for individual updates.
      Use a positive or negative number to increase and decrease rates, respectively.
2. Click on SAVE to close the modal.
3. Once a new price plan version is created including the products and rates from the previous plan, click on edit and update price plan rates. 

Calculating and applying discount to rates

As long as a price plan is not already in use, it is possible to provide a discount on defined base and tiered rates.  When adding new or editing existing product rates, use Calculate Amount to enter a discount, expressed as an amount or percentage.  The discounted price is calculated and set automatically.

1. While on EDIT mode and select the product rate to update.
2. Click on CALCULATE, on the base or tiered rate.
3. In the Calculate Amount modal:
   
   1. Provide a number in the 'Initial Amount' text box (this can be the same or different than the base/tiered amount).
   2. Select between amount and percentage and provide a number in the text box below.
   3. Click anywhere outside the text box and check the calculated rate.
   4. Click on SAVE to apply the change.
      • The system will set the amount that has been calculated, regardless if the 'initial amount' provided was different to the base or tiered amount.

Adding a new product rate to existing price plans

Use the Add New Product action to define rates for new products in existing price plans.

1. Select the plan to which the new product should be added.
2. In the Data Entry page, click Add New Product from the Actions menu.
3. Use Quick Search or click on the magnifying glass to search for the product.
4. In the modal, enter the information that is necessary to create the product (refer to the price plan fields table).

Creating a conditional price plan

Conditional price plans can be used for billing jobs or subscriptions, subject to two types of conditions, defined in the price plan:

• Selection Conditions must be met to make the price plan available.
• Validity Conditions must be met in order to use the rates for billing. 
  Selection conditions can change from the time a price plan is set until it is billed. It is recommended to have the same conditions defined for selection and validity.
  If validity conditions are not met during billing, then the system will use rates from the base price plan that was used when creating the conditional price plan.

Specify the criteria that match the price plan you are interested in or use NEW from the Actions menu to create a new plan. Provide the mandatory information in the price plan fields table before you SAVE the plan.

1. Click on NEW from the Actions menu to create a new plan.

1. Provide the mandatory information in the price plan fields table (like in base price plans).  

   Important: Select a Base Price Plan for the system to use in case the selected conditional price plan conditions are not met during billing.

2. Rates: Available rates from the selected base price plan are displayed. Change the rates individually or use the Replace Price Plan action to change all the rates simultaneously by a specific percentage value.

3. SELECTION & VALIDITY CONDITIONS (The process for adding selection or validity conditions is identical) 

   Follow the steps below:

1. Under 'Evaluation Settings' select:

   1. General: whether 'Criteria in all condition groups should be met' or 'Criteria in at least one condition group' should be met

   2. Condition Group Specific: whether 'Criteria in all condition rows should be met' or 'Criteria in at least one condition row' should be met.

2. Once Evaluation Settings are in place, click on each of the condition groups in the list to start defining group row conditions.

1. Click to ADD a new row, or ADD FROM TEMPLATE (a saved row that was used previously with preset values, such as for type and operator) to select an existing condition group row.  

2. Type: Select from the drop-down list.
3. Operator: Select whether the defined values should be 'Equal' or 'Not Equal'.
   1. Value: ADD VALUES from the modal for each selected condition group row.
      1. Specify whether all values, or at least one, defined in the modal should be met.
         

      2. Value 1 - Value 20: Use Quick Search or click on the magnifying glass for a search modal to select the values to be used as conditions.

4. Save as Template: Save the values for each condition group as a template, so that it can be used again with condition groups of the same type.
   
   1. Click on SAVE AS TEMPLATE and provide a name and description.
   2. Once all the condition group rows are complete, repeat the process for a new condition group.
5. Select the Allowed Organisational Units which are authorised to select and assign the Price Plan.
   

6. SAVE the Price Plan.

Selection and Validity Conditions

Each condition group type selected in the condition group has different available values:

Type	Evaluated against	Only available for 'Selection conditions'
Subscription Type	Subscription type of the subscription being billed.
Billable Entity Maturity	Maturity of the billable entity; whether it is a new or existing subscription or job.
Billable Entities Existing Products	Physical goods or services added to the subscription or job.
Billable Entities Products To Be Added	Products that will be added to the subscription or job.
Billable Entities Existing Price Plans	The price plan already used by the subscription or job (Applicable only when the billing term scheme is modified using the 'Amend Billing Terms' action through jobs or subscriptions).
Billable Entities Owner Groups	Group that owns the subscription or job.
Accounts Receivable Classifications	Classification of the account owner of the subscription or job.
Accounts Receivable Credit Ratings	Credit rating of the account owner of the subscription or job.
Accounts Receivable Payment Preference	Payment preference of the account owner of the subscription or job.
Billing Term Scheme	Billing term scheme of the subscription or job.
Billing Terms Binding State	Binding state of the subscription; i.e., whether the subscription is in or out of binding.
Billing Terms Binding Period	Binding period of the subscription; e.g., for one or two years.
Billing Terms Billing Frequency	Billing frequency of the subscription; e.g., monthly or annual.
Segmentation	Accounts receivable that belong to a selected segment.

Defining product bundle pricing

A product bundle is a combination of component products offered for sale as one product, such as a single package including multiple channels.  Fixed Bundle Products have a fixed selection of constituent products as components.  Flexible Bundle Products are available for termed services and have a variable selection of constituent products as components.  The price of a fixed bundle product is set as that of a regular product.

Flexible bundle products allow the user to define prices at:

• Bundle level; i.e., one price for all included products.
• Product level, and differentiate when a product is sold as a stand-alone or part of a bundle.
• Both bundle and product levels.

To add a rate at bundle product level:

1. Add the product to the price plan.
2. Provide the information required in the 'Rates' section.
3. Leave 'Applicable Only If Part of Bundle' empty. 

To add a rate for a product when provided through a bundle:

1. Add the product to the price plan.
2. Provide the information required in the 'Rates' section.
3. Under 'Applicable Only If Part of Bundle' select the bundle that the product is part of.

To add a rate for a product that is sold as a standalone product and as part of a bundle:

1. Add the product to the price plan.
2. Provide the information required in the 'Rates' section.
3. Leave 'Applicable Only If Part of Bundle' empty
4. Add the product to the price plan again.
5. Provide the information required in the 'Rates' section.
6. Under 'Applicable Only If Part of Bundle' select the bundle that the product is part of.

 
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Applying business flows on price plans

Bulk adjustment of rates based on tax changes

Price plan adjustment run definitions enable the user to set up rules so as to reflect changes in VAT or other taxes across all affected price plans.

1. Create the definition.
2. Set the scheduling setting.
3. SUBMIT the definition.

Once the run is completed, new rates for affected products will be calculated and a new version of each affected price plan will be created.

Do not use adjustment runs if price plan rates are not tax inclusive.

Refer to Tax Definition for more information.

Price plan adjustment run definition fields

The table describes the sections of the Perform Price Plan Adjustment Runs Data Entry page and explains how the fields in the page are used.

 Mandatory   Configurable

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