Billing Model Calculations

Example 1. A customer purchases a service plan with the following parameters:

Service plan parameters Values

Setup Fee

$10

Subscription Fee

$5

Subscription Period

1 year

Billing period

1 month

Resource (traffic) Setup Fee

$0

Resource (traffic) Recurring Fee

$2

Resource (traffic) Overuse Fee

$0.1/Gb

Depending on the billing model (the Billing Model field in the Provider Control Panel), the customer is charged in one of the following ways:

Billing Model

Calculations

Charge Before Subscription Period

When the customer purchases a service plan, the customer is invoiced for the sales order:

  • Sales Order =$10+$5*12=$70.

On the first billing date, there is no resource overuse. The billing order sum is null.

During the second billing period, the customer overuses traffic by 20Gb:

  • Billing Order = 20*$0.1=$2.

From the beginning of the third billing period to the end of the subscription period, there is no resource overuse. Billing order sums are null.

Charge Before Billing Period

When the customer purchases a service plan, the customer is invoiced for the sales order:

  • Sales Order =$10+$5=$15.

During the subscription period, no resource overuse occurs. Before each billing period, the customer pays the subscription recurring fee (eleven times):

  • Billing Order =$5.

Charge After Billing Period

When the customer purchases a service plan, the customer is invoiced for the sales order:

  • Sales Order =$10.

During the subscription period, no resource overuse occurs. After each billing period, the customer pays the subscription recurring fee (twelve times):

  • Billing Order =$5.

Example 2. A customer purchases the same service plan as in example 1. Additionally, the customer purchases 100Gb of traffic. The resource setup fee and resource recurring fees are charged for the whole resource amount.

Depending on the Billing Model field, the customer is charged in one of the following ways:

Billing Model

Calculations

Charge Before Subscription Period

When the customer purchases a service plan, the customer is invoiced for the sales order:

  • Sales Order =$10+$5*12+$0+$2*12=$94.

During the subscription period, no resource overuse occurs. The billing order sum is null (twelve times).

Charge Before Billing Period

When the customer purchases a service plan, the customer is invoiced for the sales order:

  • Sales Order =$10+$5+$0+$2=$17.

1st, 2nd, 3rd Billing Orders =$5+$2=$7.

During the fourth billing period, the customer overuses traffic by 20Gb:

  • 4th Billing Order =$5+$2+20*$0.1=$9.

The remaining seven billing orders have the same total as the first three billing periods.

Charge After Billing Period

When the customer purchases a service plan, the customer is invoiced for the sales order:

  • Sales Order =$10+$0=$10.

During the subscription period, no resource overuse occurs. After each billing period, the customer pays the subscription and resource recurring fees (twelve times):

  • Billing Order =$5+$2=$7.

Example 3. A customer purchases the same service plan as in example 1. The customer additionally purchases 100Gb of traffic 10 days before the third billing date. The resource setup fee and resource recurring fees are charged per resource unit.

Depending on the Billing Model field, the customer is charged in one of the following ways:

Billing Model

Calculations

Charge Before Subscription Period

When the customer purchases a service plan, the customer is invoiced for the sales order:

  • Sales Order =$10+$5*12=$70.

During the subscription period, no resource overuse occurs. The billing order total is null.

Before the third billing period ends, the customer is invoiced the upgrade order total:

  • Change Order = $0*100+$2*100*9+$2*100*10/30=$1866.7.

Charge Before Billing Period

When the customer purchases a service plan, the customer is invoiced for the sales order:

  • Sales Order =$10+$5=$15.

During the first two billing periods, no resource overuse occurs:

  • 1st, 2nd Billing Orders =$5.

Before the third billing period ends, the customer is invoiced for the upgrade order:

  • Upgrade Order = $0*100+$2*100*10/30=$66.7.

From the the beginning of the third billing period to the end of the subscription period, no resource overuse occurs . The customer pays only the subscription and resource recurring fees (nine times):

  • Billing Order =$5+$2*100=$205.

Charge After Billing Period

When the customer purchases a service plan, the customer is invoiced for the sales order:

  • Sales Order =$10.

During the first billing period, no resource overuse occurs:

  • 1st Billing Order =$5.

During the second billing period, the customer overuses the traffic by 20Gb:

  • 2nd Billing Order =$5+$20*0.1=$7.

Before the third billing period ends, the customer is invoiced for the upgrade order:

  • Change Order = $0*100 =$0.

From the beginning of the third billing period to the end of the subscription period, no resource overuse occurs . The customer pays the subscription fee and resource recurring fees for the use period (10 days from 30 days):

  • 3rd Billing Order =$5+$0*100+$2*100*10/30=$71.7.
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