Billing Cycle for Addons
The billing cycle of addons can be equal or lesser to the billing cycle of plan.
In other words, we can say that if a plan has a billing cycle of 6 months it can have an add-on with a billing cycle of 3 months associated to it. This means you can provide an add-on for a billing period unlike that of the plan, in this instance, for a lesser time.
This feature is useful if you need to break down a one-time charge, which will help the customer to pay in parts.
- The Billing cycle is applicable for recurring addons can only.
- To activate this feature, get in touch with firstname.lastname@example.org
Setup Addons with Billing Cycle
Get started with setting up an add-on.
Go to Product Catalog > Addons, you will be able to create a new recurring add-on with the charge or amend the current add-on.
After setting up an add-on, you have to connect it with a new subscription or the current subscription.
If you want to add the add-on to a new subscription, go to Subscriptions and click Create New Subscription. Fill in the details of an add-on to the subscription. Here you can select the add-on and add the billing cycle as well.
The add-on will be included in to the new subscription's invoice. As time passes and the generation of more invoices takes place, the billing cycle will be reduced to zero and the add-on will be terminated after.
Now, to include the charge to a current subscription, find the subscription and click Change Subscription.
Then edit the add-on to change the number of billing cycles.
Once an add-on is included to an existing subscription, the generation of a prorated invoice depends on the subscription term that takes place. As far as the add-on is concerned, the prorated period will be taken as one billing cycle.
In case you include a billing cycle to the current add-on connected to a subscription, then no charge will be raised. Though the billing period will be reduced and the add-on will be terminated once the billing cycle becomes zero.
- You can update/add the billing cycle for an addon only through UI.
- In case, the term for the subscription change from monthly to quarterly and the change takes place by API, make sure that the billing cycle of the add-on is updated too. If not, the add-on's billing cycle will be reset to ‘forever', which means, the customer has to pay for the add-on forever.
Once a subscription is terminated, the add-on connected to it will be disabled till reactivation. Then two scenarios should be considered as far as the subscription's reactivation is taken into account:
1. In-term Reactivation: In case the reactivation of subscription takes place before the subscription term is over, the add-on's billing cycles will be maintained.
2. Out-of-term Reactivation: In case the reactivation of subscription takes place after the subscription term is over, the add-on's billing cycle will be reset to ‘forever', which means, the customer have to pay for the add-on forever. With the help of the ‘Change Subscription' option, the billing cycle of the add-on can be updated after reactivation.
1. By which way can I collect a one-time charges/setup fee in parts?
With the help of add-on's billing cycle you can collect the setup fee in parts. Assume that, you are charging a setup fee of $2000 to your customers and you want to get the payment in 20 installments then the billing cycle should be set to 20. All you have to do is to configure an add-on with 'Unit Price' set as $200 and 'Billing Cycles' as 20.
Though, the setup fee formed as an add-on, will be considered as the MRR calculation(setup fee mentioned in the plan is not considered as the MRR).
2. Is it possible to raise an add-on's advance invoice that has a billing cycle?
Yes, it is possible to raise an advance invoice for collecting the payments for addons with the billing cycles.