Overview
When creating a plan with products, you can control the timing of when the charge will occur. In addition, you can control when charges occur when the product quantity is changed.
These timing settings can be configured when you add a product to a plan.
Inclusion section
Registration Visibility
The Registration Visibility section allows you to set if the products or line items can be removed from the plan. If it can be removed from the plan, you can set whether it is included by default. This can allow plans to be customized by the customer in the registration pages or the agent setting up the subscription for the customer.
- Optional - Not included by default: The item is not selected and must be selected to add.
- Optional - Included by default: The item is selected and must be de-selected to remove.
- Always include- The item is always included in the subscription, and there is no option to remove it.
Charge at
The Charge at setting determines when the product or item will be charged. When set to activation, the item will be set to be charged at the activation of the subscription.
Some subscriptions may be scheduled to start at a later date. If you set a provisioning charge, that item will be charged when the subscription is created/ provisioned.
- Activation: Charging will start when the subscription becomes active.
- Provisioning: If a subscription is scheduled, the items set to provisioning will charge once the subscription has been provisioned.
Pricing Advance Settings
In the Pricing section, under the Advanced Settings column, select Timing from the dropdown menu and click Go.
On the Advanced Price Setting window, you can set the timing behaviour of the pricing:
When a product is purchased/renewed
When a service or product is added or renewed, this setting determines when the charge will be charged. In addition, you can set a proration to charge for only the time activated.
For example, if you have a billing period from the 1st to the last of the month, and you add an item on the 15th and set the charge at the end of the period and prorate, then the customer will pay roughly 50% of the cost of the item. Note: If the charge at the start of the period is set, then no charge will occur, and it will be charged for the beginning of the 1st.
When quantity is changed
When a service or product's quantity changes, you can choose when to charge. You can charge immediately for the quantity increase, do not charge or charge at the end of the period. Note that the do not charge option will charge at the set renewal period setting.
Rollup charges
The rollup charges setting allows you to set all quantity changes throughout the charge cycle to be set to one line item on the invoice. This is particularly useful for items with multiple quantity changes throughout the cycle or usage-based quantity changes.
To set this option, you must set your timing first and click Apply on the Advanced Timing page. Then click Save on the Edit Product page. On the Catalog page, click the product and reopen the Timing page to adjust the rollup option.
Track Peak Quantity
When a subscription product changes quantities multiple times during a billing period, the track peak quantity records the current high value and charges for changes that exceed the high level of the billing period. If a billing period starts at a quantity of 5, then the high peak mark is set to 5. Then during the billing period, a customer can increase and decrease the quantity. If they add 15, then the new peak mark would be 20.
Note: Track Peak Quantity is only available for end of period charges.
Track Peak Quantity Example
The following example invoice shows with prorated on and one charge with peak quantity off and one charge with it on. Throughout the month, the customer added and removed quantities numerous times.
- April 1: Initial 10 items
- April 3: Add 15 items
- April 5: Remove 5 items
- April 7: Add 20 items
- April 9: Remove 10 items
- April 11: Add 5 items
- April 15: Add 100 items
- April 29: Remove 125 items
The Peak quantity would reset to 10 in this case for the next billing cycle.
Example Setting Behaviours
One-time charges or physical goods are charged at the start of the period, and any change to the quantity of the physical good or one-time charge can be charged immediately or at the end of the period.
Reoccurring charges provide additional flexibility to create unique behaviours. The following are some typical examples and scenarios with reoccurring items.
The Customer billing cycle is from the first of the month to the last day of the month. A customer has a subscription for 30$ a month, recurring. On the 23rd, the customer increases the quantity to 2.
Scenario 1:
Renewing or adding a new product: Charge at start of period
When quantity is changed: Do not charge
This setting allows you to charge before the period, essential prepay for the coming month. Any additional quantities added will not be charged during the month but will be precharged for the upcoming month.
This setting can be used when a customer is allowed to change quantities during a billing period and you will not charge for the change. The charge will be added to the next billing period start.
If the customer adds a quantity on the 23rd, they will not be charged for the item for that month. The first of the month bill will have a charge for 2 items going forward.
Proration will have no effect on the charges.
Scenario 2:
Renewing or adding a new product: Charge at start of period
When quantity is changed: Charge immediately
The customer, as above, will prepay for the month or year and any changes will generate an additional invoice with the new charge added.
So if the item is added on the 23rd, they will be charged the full month of the item if proration is off or they will be partially charged if proration is on.
With Proration on:
Scenario 3:
Renewing or adding a new product: Charge at start of period
When quantity is changed: Charge at end of period
In this scenario, the customer prepays for the month but will receive an additional invoice at the end of the month for the new quantity charge. The charge will be the full amount if proration is off or a partial charge if proration is on. At the start of the billing period, they will receive an invoice including the quantity change charge.
With Proration on:
Scenario 4:
Renewing or adding a new product: Charge at end of period
When quantity is changed: Charge immediately
A customer will be charged at the end of the month but if a quantity is changed they will be invoiced immediately with the additional charge. If proration is on, they will be charged the partial amount based on the month remaining. However, they will also be prorated charge again at the end of the period. As such, we do not encourage this setting. Charging at the beginning of the period and charging immediately for changes is the preferred best practice.
Figure: Charge at end of the period and any quantity change is charged immediately.
With proration on:
Scenario 5:
Renewing or adding a new product: Charge at end of period
When quantity is changed: Charge at end of period
Charging at the end of the period, sometimes referred to as charging in arrears, is when a customer pays after the service is provided. In this setting, the customer is invoice after receiving the service. The invoice charges will be charged in full at the end of the period if proration is off for any quantity changes or additional services or if proration is on they will be partially charged based on the timing of the change.
Figure: Charge at end of period and any quantity change is charged at the end of the period.
With proration on:
Quantity Reset
Quantity reset allows you to reset quantities at the end or the beginning of a period. This feature allows you to set usage-based products to be billed for and then reset for the next billing period automatically.
To access the quantity reset, click the Show Advanced Settings at the bottom of the Edit Plan Product.
Note: Stax Bill recommends Quantity Reset be set to End of Period for most situations. For further information about other settings like resetting at the start of the period, contact Stax Bill Support.