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Prepayment subscription

A prepayment subscription allows customers to pay upfront for a set period of service or a bundle of products, with options for discounts and flexible subscription terms.

A prepayment subscription is a type of subscription model where the customer pays upfront for a set period of service or a bundle of products. You can create a prepayment subscription using the Zuora Ui or through an API.

Notes and limitations

  • The evergreen term type is supported. To enable the support of evergreen subscriptions in the Prepaid with Drawdown feature, submit a request at Zuora Global Support.

  • The subscription term should be one or multiple times of the validity period. See Create subscription with partial period for an exception.

  • When the validity period of the prepayment charge is Subscription Term , the subscription term type cannot be Day or Week.

  • When both the validity period and billing period of the prepayment charge are set as Subscription Term and the list price base is a month-based value (not a week-based value), you must ensure the subscription term is one or multiple times the list price base.

  • If the Contract Effective Date and the Term Start Date are different, the difference must be one or multiple times of the validity period.

  • Discount limitation: when you apply percentage discounts to a prepayment subscription, keep the following things in mind:

    • Do not select the Allow apply to billing period partially option.

    • Do not select the Tax Inclusive mode.