This section describes how a customer is charged for a purchased subscription and additional resources. Depending on a service plan's billing conditions, a customer is charged for the whole subscription period at once or partially. If a customer upgrades a subscription (purchases additional resources) in the middle of a billing period, the customer is charged a resource setup fee and resource recurring fee for the remaining part of the subscription period. When resource overuse occurs, the customer pays extra. Please see the following examples.
Note: The examples below are for measurable resources. Billing models for non-measurable resources are similar. However, the overuse component is removed from formulas because non-measurable resources cannot be overused.
Billing Models. Example 1. Additional conditions: No additional resource amount is purchased.
| When customer is billed | Calculations |
|---|---|
|
Before Subscription Period |
When a customer purchases a service plan, the customer pays the subscription setup fee and the subscription fee for the full subscription period. SO=SetupFee+SubsFee*NumBP, where
During the subscription period, Billing checks the customer's subscription for resource overuse per billing period. If resource overuse occurs, the customer is charged additional payment. BO per each BP= 0 or Overuse, where
|
|
Before Billing Period |
When a customer purchases a service plan, the customer pays the subscription setup fee and the subscription fee for the first billing period. SO=SetupFee+SubsFee. Before each billing period, the customer is charged the subscription fee for the billing period and for resource overuse for the previous period. BO per each BP =SubsFee+Overuse. |
|
After Billing Period |
When the customer purchases a service plan, they pay the subscription setup fee. SO=SetupFee. After each billing period, the customer is charged the subscription fee for the period and for any resource overuse. BO per each BP =SubsFee+Overuse. |
Billing Models. Example 2. Additional conditions:
- An additional amount of a resource is purchased.
- Resource Setup Fee and Resource Recurring Fee are charged for the whole amount of the additional resource.
| When customer is billed | Calculations |
|---|---|
|
Before Subscription Period |
When a customer purchases a service plan, the customer pays the subscription setup fee, resource setup fees, subscription recurring fees, and resource recurring fees in full for the whole subscription period. SO=SetupFee+SubsFee*NumBP+ResSetupFee+ResRecFee*NumBP, where
During the subscription period, Billing checks the customer's subscription for resource overuse per billing period. If resource overuse occurs, the customer is charged additional payment. BO per each BP=0 or Overuse |
|
Before Billing Period |
When a customer purchases a service plan, the customer pays the subscription setup fee and resource setup fees as well as the subscription and resource recurring fees for the first billing period in full. SO=SetupFee+SubsFee+ResSetupFee+ResRecFee. Before each billing period, the customer is charged the subscription and resource recurring fees for the period as well as for resource overuse for the previous period. BO per each BP =SubFee+ResRecFee+Overuse. |
|
After Billing Period |
When a customer purchases a service plan, the customer pays the subscription and resource setup fees. SO=SetupFee+ResSetupFee. After each billing period, the customer is charged the subscription and resource recurring fees as well as for resource overuse. BO per each BP =SubsFee+ResRecFee+Overuse. |
Billing Models. Example 3. Additional conditions:
- Additional units of a resource are purchased.
- Resource Setup Fee and Resource Recurring Fees are charged per unit of the additional resource.
| When customer is billed | Calculations |
|---|---|
|
Before Subscription Period |
When a customer purchases a service plan, the customer pays the subscription setup fee, resource setup fees, subscription recurring fees, and resource recurring fees in full for the whole subscription period. SO=SetupFee+SubsFee*NumBP+ResSetupFee*Units+ResRecFee*NumBP*Units, where
During the subscription period, Billing checks the customer's subscription for resource overuse per billing period. If resource overuse occurs, the customer is charged additional payment. BO per each BP =0 or Overuse |
|
Before Billing Period |
When a customer purchases a service plan, the customer pays the subscription setup fee and resource setup fees in full, as well as the subscription and resource recurring fees for the first billing period. SO=SetupFee+SubsFee+ResSetupFee*Units+ResRecFee*Units. Before each billing period, the customer is charged the subscription and resource recurring fees as well as for resource overuse. BO per each BP =SubFee+ResRecFee*Units+Overuse. |
|
After Billing Period |
When a customer purchases a service plan, the customer pays the subscription and resource setup fees. SO=SetupFee+ResSetupFee*Units. After each billing period, the customer is charged the subscription and resource recurring fees as well as for resource overuse. BO per each BP =SubsFee+ResRecFee*Units+Overuse. |
Related Topics