home

Zuora Billing

Zuora BillingZuora PaymentsZuora PlatformZuora CPQZephrZuora RevenueAccounts ReceivableRelease NotesBasicsEntitlementsSupport and policies
Zuora BillingZuora PaymentsZuora PlatformZuora CPQZephrZuora RevenueAccounts ReceivableRelease NotesBasicsEntitlementsSupport and policies

Welcome to Zuora Product Documentation

Explore our rich library of product information

Show Contents

thumbnailZuora Billing

Prepayment subscription

Create a prepayment subscription - Zuora UI

Create a prepayment subscription in Zuora to manage API usage with a monthly plan, including prepayment and drawdown charges.

You can create a prepayment subscription using the Zuora user interface. The procedure described in this section makes use of an example:

Suppose you run a software company and have configured the following prepayment charge and drawdown charge in your product catalog:

  • Product: API Calls Prepayment Service

  • Product rate plan: API Calls Monthly Prepayment Plan

Prepayment chargeDrawdown charge

  • Charge name: Monthly Plan

  • Charge type: Recurring

  • Charge model: Flat Fee

  • List price: $20/Billing period

  • Billing period: Month

  • Prepaid UOM: Million calls

  • Prepaid units: 10

  • Validity period: Month

  • Charge name: Drawdown

  • Charge type: Usage

  • Charge model: Per unit

  • List price: $5

  • UOM: Million calls

Your customer is interested in subscribing to your monthly plan for 12 months. You can create this 12-month subscription for the customer. Suppose you want to offer your customers discounts, you can apply percentage discounts to the prepayment charge, drawdown charge, or both in the subscription.

  1. Follow the steps as described in Create a subscription.
  2. Select the desired product for this order.
    Create prepayment subscription
  3. Update the charges for this product if needed.

    • For prepayment charge, you can update Price , Prepaid Quantity and Validity Period.

    • For drawdown charge, you can update Price and Drawdown Rate.

  4. If you want to apply a 20% discount to the prepayment charge, you can create a percentage discount charge in the same rate plan, and apply this discount to the subscription.
  5. In the Charge Amount section, specify the following fields:

    • Charge Model: Discount-Percentage

    • Discount Percentage: 20%

    • Apply Discount To : All charges in the rate plan

    • Allow apply to billing period partially : You must not select this checkbox.

    • Reflect Discount in Apply To Charge Net Amount : Select this checkbox.

    • Recurring : Select this checkbox.

    • Include the following product charges : You must specifically select the charges to which you want to apply the discount; otherwise, it will not take effect.

  6. In the Finance section, specify the following fields:

    • Use discount specific accounting codes, rule and segment to manage revenue : You must not select this checkbox.

    • In the Finance > Revenue Accounting section, select both the Exclude Item Booking from Revenue and Exclude Item Billing from Revenue checkboxes.

Last updated: October 10, 2025