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Adding extra users to annual plan

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Question:

How is the customer charged when we add an extra user to their annual plan in the middle of their current term.

Platform:

  • Unleashed on Browser
  • Zuora

Answer: 

First things first, the finance team has recommended that if we were to add extra users to a client's annual plan, its best to do it via the Unleashed billing page by logging as the customer. He says it helps take care of some billing date issues that may arise if we manually add the extra users within Zuora.

Also, when we add an extra user to an annual account, we align the extra user billing with the base plan's bill cycle IF and ONLY IF, there is an existing extra user already added to that subscription.
i.e we are only adding another user to the current "extra user" product.

If the client is on an annual plan with no extra users and we add an extra user in the middle of the term, the system charge them on a pro-rata basis from the date they purchase until the "Bill Cycle Day" and then a whole year's invoice upon their next "Bill Cycle Day" renewal.

This "Bill Cycle Day" is not the current annual bill renewal date. Rather it's just the day of the month their bill cycle belongs.

Screen_Shot_2020-03-04_at_3.00.21_PM.png

Hence, if we add 2 extra users to an account on 18th Feb while their base plan (which had no existing extra users) is due to be renewed on 26th March 2020:

> The system will charge them a pro-rata invoice for the period 18/02/2020 to 25/02/2020.

Screen_Shot_2020-03-04_at_2.54.21_PM.png

> Then, on their "Bill Cycle Day" renewal, we charge them for the 2 users for the whole year for the period 26/02/2020 to 25/02/2021

Screen_Shot_2020-03-04_at_3.00.42_PM.png

 

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