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Zuora Billing

Zuora BillingZuora PaymentsZuora PlatformZuora CPQZephrZuora RevenueAccounts ReceivableZuora AIRelease NotesBasicsEntitlementsSupport and policies
Zuora BillingZuora PaymentsZuora PlatformZuora CPQZephrZuora RevenueAccounts ReceivableZuora AIRelease NotesBasicsEntitlementsSupport and policies

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Annual list price use cases

Create Orders containing charges with Annual Pricing and Leading Partial Periods

Learn how Annual List Price behaves when a semi-annual charge has a leading partial first billing period, causing invoice items to be rounded independently and potentially differ by $0.01 from the prorated segment amount.

With Annual List Price, you can create orders that contain charges with annual pricing where the first billed service period is a leading partial period. In this scenario, the annual list price rounding distribution does not apply across the charge segment that contains the leading partial period. Instead, each billing period amount is calculated and rounded independently. As a result, the sum of the invoice item amounts in that segment can differ by $0.01 from the segment-level prorated amount.

In this use case, one subscription is created with one recurring flat fee charge and three ramp intervals:

  • The charge uses an annual list price.

  • The listPriceBase value is Per_Year.

  • The billing period is semi-annual.

  • The first ramp interval starts on 05/31/2025, which does not align with the semi-annual billing period boundary.

  • The later ramp intervals start on billing period boundaries and therefore use the standard annual list price rounding distribution.

The following table lists the ramp intervals in the order:

Ramp intervalCharge start dateCharge end dateAnnual list priceBilling periodExpected billing behavior
A05/31/202507/31/2026$4,646.19Semi-annualLeading partial first billing period, billed amounts are rounded independently
B08/01/202607/31/2027$9,932.17Semi-annualFull aligned billing periods, billed amounts reconcile to the annual price
C08/01/202707/31/2028$11,719.15Semi-annualFull aligned billing periods, billed amounts reconcile to the annual price

To create such an order, perform the following steps:

  1. Enable the Annual List Price settings.
  2. Create a recurring product rate plan charge with the Flat Fee Pricing charge model.
  3. Set the annual price by using listPriceBase=Per_Year.
  4. Set the billing period to Semi_Annual.
  5. Create and activate an order that contains one subscription with the three ramp intervals shown in the preceding table.
  6. Preview the generated invoices.

    After the order is activated, the first ramp interval produces a leading partial billing period followed by two full semi-annual billing periods. The following table lists the invoice item amounts for the first ramp interval:

    Invoice itemService start dateService end dateAmountTotal amount
    Invoice Item 105/31/202507/31/2025$786.85$5,433.05
    Invoice Item 208/01/202501/31/2026$2,323.10
    Invoice Item 302/01/202607/31/2026$2,323.10

    The segment-level prorated amount for the first ramp interval is calculated as follows:

    (4,646.19 ÷ 12) × (14 + 1/31) = 5,433.044758252, which rounds to $5,433.04.

    However, because the first ramp interval begins with a leading partial billing period, the cumulative rounding distribution used for aligned full billing periods is not applied. Each billing period amount is calculated and rounded independently:

    • 05/31/2025–07/31/2025 = $786.85

    • 08/01/2025–01/31/2026 = $2,323.10

    • 02/01/2026–07/31/2026 = $2,323.10

    • Total = $5,433.05

    The visible total is therefore $0.01 higher than the prorated segment-level amount. This behavior is expected.

    For the later ramp intervals, the charge start date aligns with the semi-annual billing period boundary. In these intervals, the annual list price rounding distribution applies, so the total billed amount across invoices reconciles to the annual price exactly.

    The following table lists the billed amounts for the later ramp intervals:

    Ramp intervalAnnual list priceInvoice item amountsTotal billed amount
    B$9,932.17$4,966.09 + $4,966.08$9,932.17
    C$11,719.15$5,859.58 + $5,859.57$11,719.15

    In summary, when a charge with Annual List Price has a leading partial first billing period, invoice items in that segment are rounded independently. Because the standard rounding distribution is not applied across that segment, a $0.01 variance can occur between the sum of the invoice item amounts and the segment-level prorated amount.

Last updated: June 29, 2026