Examples of Prepaid and Drawdown Configuration
To facilitate your understanding of how to set up the prepayment and drawdown charges for different use cases, the examples of the Prepaid Drawdown configurations are provided.
Example 1: One-time Prepayment Charge and Recurring Drawdown Charge
Company Z offers a service with a recurring charge of $100/month and will allow customers to apply a prepayment of $600 to their account with a negative prepaid balance.
1. Navigate to , and then select the desired product.
2. Click Add rate plan to create a new rate plan.
3. Enter the Name, Effective Start Date, and Effective End Date of the rate plan.
4. Add a new one-time charge to the product rate plan.
5. Complete the charge configuration using the following values:
| Section | Field | Value |
|---|---|---|
| Name | Charge Name | Prepayment |
| PPDD Type | Prepayment | |
| PPDD Balance Location | Account | |
| PPDD Ignore Negative Invoice Items | No | |
| Charge Amount | Charge Model | Flat Fee Pricing |
| List Price | 600.00 | |
| Extension | Extension Link | Prepaid Drawdown |
|
Timing and Frequency of Charge |
Trigger Condition |
Select a trigger condition that aligns with your business requirements. |
|
Revenue Recognition Rule |
Select a rule that aligns with your accounting requirements. | |
|
Finance |
Revenue Recognition Rule |
Select a rule that aligns with your accounting requirements. |
|
Revenue Recognized |
Select the accounting code for the recognized revenue based on your accounting requirements. |
1. For the same product, add or edit a recurring charge of the product rate plan.
2. Complete the charge configuration.
| Section | Field | Value |
|---|---|---|
| Name | PPDD Reason Code | Drawdown |
| PPDD Allow Negative Prepaid Balance | Yes | |
| PPDD Ignore Discounts For Balance Calculations | No | |
| PPDD Use Prepayment on Discounts | Yes | |
| PPDD Use Prepayment on Taxes | Yes | |
| PPDD Balance Location | Account | |
| PPDD Type | Drawdown | |
| PPDD Ignore Negative Invoice Items | No | |
| Extension | Extension Link | Prepaid Drawdown |
Example 2: Recurring Semi-Annual Prepayment Charge and Recurring Semi-Annual Drawdown Charge
Company Z offers a service with a recurring charge of $600 semi-annually and will allow customers to apply a prepayment of $600 semi-annually to their account with a negative prepaid balance.
1. Navigate to , and then select the desired product.
2. Click Add rate plan to create a new rate plan.
3. Enter the Name, Effective Start Date, and Effective End Date of the rate plan.
4. Add a new recurring charge to the created product rate plan.
5. Complete the charge configuration using the following values:
| Section | Field | Value |
|---|---|---|
| Name | Charge Name | Prepayment |
| PPDD Type | Prepayment | |
| PPDD Balance Location | Account | |
| Charge Amount | Charge Model | Flat Fee Pricing |
| List Price | 600.00 | |
| Extension | Link with | Prepaid Drawdown |
|
Timing and Frequency of Charge |
Trigger Condition |
Select a trigger condition that aligns with your business requirements. |
|
Billing Period |
Semi-annual | |
Billing Timing | In Advance | |
Billing Day | Select a billing day based on your business requirements. | |
Billing Period Alignment | Default to "Align to Charge" | |
|
Finance |
Revenue Recognition Rule |
Recognize Upon Invoicin |
|
Revenue Recognized |
Select the accounting code for the recognized revenue based on your accounting requirements. |
1. For the same product, add or edit a recurring charge of the product rate plan.
2. Complete the charge configuration.
| Section | Field | Value |
|---|---|---|
| Name | PPDD Reason Code | Drawdown |
| PPDD Allow Negative Prepaid Balance | Yes | |
| PPDD Ignore Discounts For Balance Calculations | No | |
| PPDD Use Prepayment on Discounts | Yes | |
| PPDD Use Prepayment on Taxes | Yes | |
| PPDD Balance Location | Select either Account or Subscription based on your business requirements | |
| PPDD Type | Drawdown | |
| Extension | Link with | Prepaid Drawdown |