Billing Models 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 setting, the customer is charged in one of the following ways:

Billing Model setting

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.

No resource overuse occurs on the first billing date. The billing order sum is null.

The customer overuses traffic for 20Gb during the second billing period:

  • Billing Order = 20*$0.1=$2.

No resource overuse occurs from the third billing period till the end of the subscription period. 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.

No resource overuse occurs during the subscription period. 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.

No resource overuse occurs during the subscription period. After each billing period the customer pays the subscription recurring fee (twelve times):

  • Billing Order =$5.

Example 2. The customer purchases the same service plan as in the 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 setting, the customer is charged in one of the following ways:

Billing Model setting

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.

No resource overuse occurs during the subscription period. 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.

The customer overuses traffic for 20Gb during the fourth billing period:

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

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

Charge After Billing Period

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

  • Sales Order =$10+$0=$10.

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

  • Billing Order =$5+$2=$7.

Example 3. The customer purchases the same service plan as in the 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 setting, the customer is charged in one of the following ways:

Billing Model setting

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.

No resource overuse occurs during the subscription period. The billing order sums are null.

The customer is invoiced the upgrade order sum before the third billing period ends:

  • 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.

No resource overuse occurs during the first two billing periods:

  • 1st, 2nd Billing Orders =$5.

The customer is invoiced for the upgrade order before the third billing period ends:

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

No resource overuse occurs from the third billing period to the end of the subscription period. 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.

No resource overuse occurs during the first billing period:

  • 1st Billing Order =$5.

The customer overuses the traffic for 20Gb during the second billing period:

  • 2nd Billing Order =$5+$20*0.1=$7.

The customer is invoiced for the upgrade order before the third billing period ends:

  • Change Order = $0*100 =$0.

No resource overuse occurs from the third billing period to the end of the subscription period. The customer pays the subscription fee and resource recurring fees for the period used (10 days from 30 days):

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