Discount charge models
Learn about Zuora's discount charge models for managing discounts and promotions, including fixed amount and percentage charge models.
Zuora's product catalog provides discount charge models to help you manage discounts and promotions. A typical scenario is your customer subscribes to your product for one year, and you give them one month for free. After the first month, the discount expires, and regular charges apply.
When you apply a discount charge model to your product rate plan charge, you create a discount charge. A discount charge behaves in the same way as a one-time charge or recurring charge. It can be set to be triggered on a specific date, such as the contract effective date or service activation date; It can be set to apply to one or more billing periods. You can create multiple discount charges in a single product rate plan.
There are two discount charge models that you can use to handle discounts and promotions and automatically control the duration of time the discount should be applied. They are Discount - Fixed Amount charge model and Discount - Percentage charge model.
Best Practices
The best practices to be followed are given below:
- One fixed-amount discount charge only applies to one regular charge instead of multiple regular charges.
- Discount charge and the applied-to regular charge have the same bill cycle day, and the bill cycle day never changes.
- The discount charge has the same activation or cancellation date as the applied-to regular charge.