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Scenario 2: Monthly installment

This scenario shows how monthly installments are billed and applied for a fully prepaid annual commitment with recurring, one-time, and usage charges.

Step 1

Create a subscription with a 1-year term and Order Date=2026-03-01, with one rate plan that has three charges:

  • Recurring charge: $100/month

  • One-time charge: $200

  • Usage charge: $1/unit

Create a commitment starting on 2026-03-01 with period=Year, amount=1200, prepayment Type=fully prepaid, and prepaid Frequency=Month.

Step 2

Generate a bill run with target date 2026-03-01. One invoice is generated with five invoice items and invoice date 2026-03-01.

Invoice Item

Charge Name

Service Start Date

Service End Date

Amount

II1

Annual Commitment - Prepaid Installment

2026-03-01

2027-03-31

100

II2

Recurring

2026-03-01

2026-03-31

100

II3

Annual Commitment - Credit Application

2026-03-01

2026-03-31

-100

II4

One Time

2026-03-01

2026-03-01

200

II5

Annual Commitment - Credit Application

2026-03-01

2026-03-01

-200

Step 3

Upload March usage of 800 and generate bills with target date 2026-04-01. A second invoice is generated for 2026-04-01.

Invoice Item

Charge Name

Service Start Date

Service End date

Amount

II6

Annual Commitment - Prepaid Installment

2026-04-01

2027-04-30

100

II7

Recurring

2026-04-01

2026-04-30

100

II8

Annual Commitment - Credit Application

2026-04-01

2026-04-30

-100

II9

Usage

2026-03-01

2026-03-31

800

II10

Annual Commitment - Credit Application

2026-03-01

2026-03-31

-800

Step 4

Generate all remaining prepayments and generate a bill for the next month at 2026-05-01, targeting 2027-01-01.

Invoice Item

Charge Name

Service Start Date

Service End date

Amount

II11

Annual Commitment - Prepaid Installment

2026-05-01

2026-05-31

100

II12

Annual Commitment - Prepaid Installment

2026-06-01

2026-06-30

100

II13

Annual Commitment - Prepaid Installment

2026-07-01

2026-07-31

100

II14

Annual Commitment - Prepaid Installment

2026-08-01

2026-08-31

100

II15

Annual Commitment - Prepaid Installment

2026-09-01

2026-09-30

100

II16

Annual Commitment - Prepaid Installment

2026-10-01

2026-10-31

100

II17

Annual Commitment - Prepaid Installment

2026-11-01

2026-11-30

100

II18

Annual Commitment- Prepaid Installment

2026-12-01

2026-12-31

100

II19

Annual Commitment - Prepaid Installment

2027-01-01

2026-01-31

100

II20

Recurring

2026-05-01

2026-05-30

100

II21

Usage

2026-04-01

2026-04-30

0