Navigation:  Settings > Billing > Charges and Discounts


Overview

Use custom charges and discounts to set up pre-defined fee structures to add or discount a customer's monthly bill. You typically create unique charges with the cloud vendor, but it is not required.


Once created, you select a charge type from the Custom Charges and Discount table and apply as follows:

  • As a default support charge to the customer (tenant),
  • A charge to a single account or group of accounts


In the above context, account also means subscription (Microsoft, Google, IBM Cloud) or project (GCP).


When an option is assigned, the fee or credit is automatically added as a line item(s) in the cloud vendor customer billing reports and on the platform-generated invoices. 


Charges

Set Custom charges to be calculated based on your cost or customer price.


Create configured fees using the following single or combination of calculation options:

  • Fixed percent: a percentage calculated using total sum times the entered percentage.
  • Fixed amount: A flat fee for the entered amount
  • Tiered charges: (also referred to as volume pricing) A fee structure strategy that involves lowering the price per unit as the quantity increases.

Example of tiered charges

This example shows how you might create a custom service fee for support plans based on spending thresholds.


Monthly charge

% of monthly billing

$100 minimum

-

$0 - $10K

10%

$10K - $80K

7%

$80K - $250K

5%

>$250K

3%


The following screen is an example of a tiered pricing structure.  The highlighted sections illustrate the settings that drive the pricing logic.



Plan Type Options:  Fixed amount, Fixed percent, Tiered

Apply Rate to options:  Customer Cost or Seller Cost

Currency options: Available options are displayed in drop-down list

Type options: Fixed or Percent


Discounts

Here are the ways you can apply adjustable discounts:

  • Fixed percent discount: Offer a discount as a fixed percentage. For example, a 10% discount.
  • Fixed amount discount: Offer a discount as a fixed amount. For example, a $100 discount.
  • Tiered discount: Offer a discount for X amount of spend within each tier. The discount increases for larger amounts of spend.

Example of tiered discounts

This example shows how you might set up tiered discounts.


Reseller discount

% of spend

$1K - $2K

5%

2K - $5K

10%

$5K - $10K

15%

>$10K

20%


Minimums and maximums

You apply a minimum and a maximum charge and a minimum and maximum discount.  After the charge or discount is calculated, it is capped within the minimum and maximum settings.


In other words, if the calculated charge is less than the minimum, the charge is set to the minimum. If the calculated charge is greater than maximum, the charge is set to the maximum.


Discount minimums and maximums work the same way. If the calculated discount is less than the minimum configured discount, the discount is set to the minimum. If the calculated discount is greater than maximum, it is set to the maximum.


Example minimum charge

A minimum charge of $100 means that the support plan charges at least $100, regardless of usage amount. In the charges example, if the customer or partner has usage of less than $1000, the support charge would be $100, because 10% of <$1000 would be <$100.


Define a charge or discount as a fixed amount

GO TO CHARGES AND DISCOUNTS

  1. Enter a descriptive name for the charge or discount.

For example, Business Support. This name is displayed in billing reports and invoices.

  1. Select the plan type: Fixed Amount
  2. Enter an amount
  3. Click Save

Define a charge or discount as a fixed percent

GO TO CHARGES AND DISCOUNTS

  1. Enter a descriptive name for the charge or discount.

For example, Business Support. This name is displayed in billing reports and invoices.

  1. Select a plan type: Fixed percent
  2. Apply the rate: Customer cost or Seller cost
  3. Enter the percentage
  4. Click Save

Define tiered charges or discounts

GO TO CHARGES AND DISCOUNTS

  1. Enter a descriptive name for the tiered charges or discounts.

For example, Tiered Support. This name is displayed in billing reports and invoices.

  1. Select a plan type: Tiered 
  2. Apply the rate: Customer cost or Seller cost
  3. (Optional) Configure a minimum or maximum amount of spend

The platform starts calculating the charge after the minimum amount is reached and stops calculating charges after the maximum amount is reached.

  1. Configure the pricing tiers.
  2. Click Save.

Apply a default charge or discount to a customer

GO TO CUSTOMERS

  1. Select a customer and click Edit
  2. Go to Charges and Discounts.
  3. Under Support Plans, click Add
  4. Select the cloud provider and the cloud accounts.
  5. To make this charge or discount stackable with other charges and discounts, click the checkbox under Stack.


Note: Any modifications to pricebooks, custom charges, and global discounts/uplifts or support plans, made during or after the billing reconciliation has concluded, will be reflected in the billing report for the following month.