The Recurring Rate component creates in the decision tree a main branch that is charged on a periodic basis. This component is characterized by: The Recurring Rate component creates in the decision tree a main branch that is charged on a periodic basis. This component is characterized by:
An activation rule expressed by a:
Frequency (day, week, month, year)
Starting date and hour
Payment rules expressed by a:
Charging mode at the beginning of the period (prepaid periods)
Prorated payment based on the start and end dates of the subscription
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Important: When you insert a Recurring Rate in the decision tree of a dependent charge (*), you cannot set up and use the prorata parameters of the Advanced tab. Calculations made on a prorata basis are not allowed in a dependent charge; therefore, if your master charges make calculations on a prorata basis, SAP SE recommends that you use the property base amount in the related dependent charges to make calculations triggered by the master charges. For example, if a refund is made on a prorata basis in a master charge, use the property base amount in the related dependent charges to make calculations relative to the master charge. |
The rules are the following:
A price plan can contain several recurring rates.
When you insert a Recurring Rate in a price plan, some properties (*) are available in the Recurring Rate branch.
If you insert a Recurring Rate in a dependent charge (**), the related master charge always triggers the dependent charge.
(*) These properties are the following:
Charge Effective Date: Subscription date to an offer or Start date of the provider contract item
Recurring Event Date: Date on which the Recurring Rate is activated
Prorata Computation: This string property takes one of the two values "prorated" or "not prorated" depending on the result of the prorated calculation. You can test this property to check if a transaction has been prorated or not.
Refund Computation: This string property takes one of the two values "refunded" or "not refunded" depending on changes made to the Expiration Date or Cancellation Date in subscriptions. You can test this property to check if a transaction has been refunded or not. In a subscription, if you change the Expiration Date or the Cancellation Date to an earlier date, a refund is automatically generated depending on the periodic basis set up to trigger the recurring rate. For example, a subscription relates to an offer including a recurring rate that triggers a subscription fee of $5 the 1st of every month. In the subscription, the Expiration Date is the 5th of July. You decide to change the Expiration Date to the 5th of April. Thus, the total refund for May, June and July will be an amount of $15. A refund is not possible for the components usage rate and one-shot rate.
(**) A dependent charge is synchronized with or triggered by another charge. For example, a dependent charge is triggered when an offer is subscribed or a provider contract is activated. A dependent charge can be a commission, a sponsorship, or a discount. Contrary to the dependent charge, the master charge is not triggered by another charge.
You use the Recurring Rate component:
To trigger and calculate a charge that is based on a time period such as monthly subscriptions or equipment rental costs that are billed on an annual basis
To calculate a commission, a sponsorship, or a discount through a dependent charge which is triggered by a master charge
To describe specific recurring actions such as resetting a counter to zero
You may use a Recurring Rate component in a master charge to define recurring charges for a monthly telephone service subscription. If a commission, which is also generated on a monthly basis, is paid to a third party, you need to use a Recurring Rate component in the dependent charge that includes this commission.
Name: Type the name of the component (mandatory). Choose an appropriate name because it is reused as the label of pricing transactions.
Description: Allows you to type the description of the component (optional).
This tab defines the frequency and the starting date for triggering the Recurring Rate.
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Important: Once you have set up a recurring rate, SAP SE recommends not to change the frequency or the starting date. A change can cause serious errors, especially in subscriptions which are closely linked to the periodicity of recurring rates. |
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Notes:
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Reference Date: Provides the list of dates for triggering the recurring rate component. Select a date that you can combine with the parameters chosen in the This recurring rate is triggered area to trigger the Recurring Rate component.
This recurring rate is triggered: Provides the list of frequencies (Every, Every other, Every 3nd, and other items) associated with the following list: day, week, month, year. For example, you can trigger the recurring rate Every 3nd month on Tuesday. The different options to select the starting date are the following:
The same day as the reference date: If you click this option, the Recurring Rate is triggered depending on the date selected in the Reference Date list. See the note below (*).
The same day as the reference date or first day of next month: If you click this option, the Recurring Rate is triggered depending on the date selected in the Reference Date list or the first day of the month following that of the selected date in the Reference Date list. See the note below (*).
the: If you have selected the frequency Every (3rd, 4th, and so on) month or year, this option triggers the Recurring Rate depending on the day of the month that you select. This option is combined with the list of numbers (from 1 to 31), the list of items such as Last, First, Second, Third and Fourth and the list of weekdays and months. Examples: the Recurring Rate is triggered Every 5th month The 11 of the month; the Recurring Rate is triggered Every year The Second Sunday of January.
on: If you have selected the frequency Every (3rd, 4th, and so on) week or year, this option triggers the Recurring Rate depending on the day of the week or the month that you select. Examples: the Recurring Rate is triggered Every 4th week on Wednesday; the Recurring Rate is triggered Every year on the 1st of January.
at: Allows you to select the starting hour if you have selected any of the previous options. This option includes hours and minutes combined with AM (ante meridiem) or PM (post meridiem). For example: the Recurring Rate is triggered Every day at 07:25 PM. You can select the same time as the reference date that is the date selected in the Reference Date list.
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(*) Notes: About The same day as the reference date and The same day as the reference date or first day of next month options.
If you select both of the Every month and The same day as the reference date options, the recurring rate will be triggered every month on the Reference Date; however, if you select the 31st of the month as the Reference Date, the recurring rate will be triggered the 31st of every odd month but the 30th of every even month (or the 28th of February, for example, if February has 28 days).
If you select both of the Every month and The same day as the reference date or first day of next month options, the recurring rate will be triggered every month on the Reference Date or the first day of the next month depending on how many days the month has. For example, if you select the 31st of the month as the Reference Date, the recurring rate will be triggered the 31st of every odd month but the 1st of the month following every even month; however, as February can have 28 or 29 days, the recurring rate will always be triggered the 1st of March if the Reference Date is the 31st of the month. The table below shows you the dates on which the recurring rate will be triggered if you select the 31st of March as the Reference Date:
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This tab defines the charging mode and the parameter settings of the prorated calculation.
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Note: In a dependent charge, you cannot set up these parameters. |
Charged at the beginning of the period: Click to start the charge at the beginning of the period. You must specify the number of the prepaid periods.
Prepaid Period Number: The value of 0 means that one period will be prepaid; the value of 1 means that two periods will be prepaid; the value of 2 means that three periods will be prepaid, and so on. Default option: 0.
Proportional during the period: Click to prorate the calculation of the recurring charge according to the subscription date and the cancellation date of the subscription or the start date and the end date of the provider contract item. You must specify the calculation parameters in Prorata Parameters:
Rounding step: Adjust the step rule for rounding the duration. Example: If the rounding step value is 5 seconds and the rounding mode is To the next greater value, a duration of 47 seconds is rounded to 50 seconds. In this example, therefore, the rounding step consists of 5-second intervals. The time unit of the rounding step is expressed in second, minute, day, or year. Default option: seconds.
Rounding mode: Select one of the rounding mode of the calculation result: To the next greater value, To the previous value or To the nearest value. Default option: To the nearest value.
Use typical period of: If selected, this option allows you to turn a variable period into a constant period. Once you have selected the Use typical period of option, you can either select the value of a property or select Numerical Value, and then type a number. For example, to turn each month into a constant period of 30 days, click Use typical period of, select Numerical Value in the list, and then type 30. If you clear Use typical period of, the reference period is 28 days in February, 31 days in January, and so on.