Extension of subscription lines in usage billing

Usage-based billing uses fields in the subscription lines in subscription billing, so this article only describes the differences. To learn more about subscription lines and how to set them up, go to Subscription lines in subscription billing.

Subscription package line templates

Using subscription package line templates is optional. To learn more about the additional fields for usage-based billing, go to Subscription packages.

Subscription packages

You can use both subscription package line templates and subscription package lines to create the default settings required to process usage data.

Subscription lines with Usage Based Billing toggle activated are generally billed based on usage. This is done in the form of usage data that you import and process. Therefore, the Usage Based Billing field in the subscription line determines a subscription line to be of such a kind. The Usage Based Pricing field is only relevant on the sales side, and is decisive for billing. On the purchasing side, the purchase prices from the usage data are used for vendor or supplier contract invoices.

  • The Usage Based Pricing field defines how prices are determined. The following options are available:
    • If Usage Based Billing is set, but the Usage Based Pricing field is blank, no pricing is determined for the usage data.
    • Usage Quantity is used when the customer is charged for the actual used quantity. This can be per billing period, for example, licenses (software), consumption minutes (car sharing), or the number of transactions. The sales price (per unit) is determined on the basis of the related item, depending on the quantity.
    • For Fixed Quantity, the original quantity remains fixed when you import the usage data. The customer is always charged for the quantity entered in the subscription. Quantities aren't adjusted based on the usage data. This pricing serves the flat-rate billing of subscription lines, which, however, only takes place if usage data is available.
    • The Unit Cost Surcharge option also disregards the imported consumption quantity. However, the customer is charged for the unit cost plus the specified surcharge. This option is usually used for consumption-based or volume-based billing. In this case, all unit costs for the subscription are added up and the surcharge is calculated on the total.
  • If you select the Unit Cost Surcharge option in the Usage Based Pricing field, the percentage value for the surcharge shows in Pricing Unit Cost Surcharge % field. For all other options, you can't edit this field.

Overview of usage-based billing
Usage-based billing customers and subscriptions

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