Add Recurring Product Price

You can add multiple recurring prices to Subscription and Add-On products.

For users of Avalara Communications Tax processor, you cannot create a recurring price that has the same recurrence period, tax mode, and currency combination as an existing price.

Complete the following steps to add a recurring product price to a product:

Select Product Catalog from the Gotransverse application menu .
Click Products in the left pane.

Products Window

Click the icon in the left pane to hide it. Click the icon to open it.

You can manage which columns display in any table with a Configure or Columns button by clicking the button and selecting desired columns. In addition. If the table includes a Filter button, you can filter the table contents. If the table includes an Export button, you can export visible table contents (up to 50) to a CSV (comma-separated values) file. Refer to Data Tables for more information about using these features.
On the Products window, select the desired product to open the Product Details window.

Product Details Window
On the Product Details window, select the Recurring Prices detail tab.

Product Details Window - Recurring Prices Detail Tab

NOTE: If you use the Avalara Communications Tax processor, your Product Details window’s Recurring Prices detail tab includes a Tax Mode column.

Recurring Prices Detail Tab for Avalara Communications Tax Users
Click the Create button to open the Create Recurring Price window.
On the Create Recurring Price window, complete required and relevant fields. Fields that cannot be completed, such as Price Type, are grayed out.

Create Recurring Price Window
For users of Avalara Communications Tax, the Create Recurring Price window will also include a Tax Mode field.

Create Recurring Price Window for Avalara Communications Tax Users
For users of Avalara Communications Tax processor, you cannot create a recurring price that has the same recurrence period, tax mode, and currency combination as an existing price.
Required fields are marked with an asterisk.
- Price Type — Displays the price type. Not editable.
- Price Category* — Select a category for prices and revenues. Also known as a charge category, the price category is a primary driver of GL posting rules. These categories are created in the Setup application’s Charge Categories modules. Refer to Charge Categories Module for more information.
- Tax Mode — For users of either the Avalara Communications or Internal Tax (Tax Essentials) tax processor. Select an option from the Tax Mode drop-down field:
  - EXCLUSIVE: The price is the taxable amount, and taxes will be calculated and invoiced in addition to the charge price.
  - INCLUSIVE: A portion of the price is the taxable amount, which is calculated based on the tax jurisdiction of the address so that the price and the taxes equal the charge price.
  - NONE: The price is not taxable, and no taxes will be calculated.
- Recurrence Period — This field is only visible if the Allow different Pricing Period Billing system setting (Billing System Settings) is set to True (refer to System Settings for information on how to view or change system settings). The recurrence period specifies when the product is charged to the billing account, which determines the service period length once the product is ordered and may be different than the bill cycle, which defines the frequency of invoicing. For example, a bill cycle may be once per month, but you could set your product recurrence period to be charged semi-annually or annually. The recurrence period should be same time period or longer than the billing cycle. The default value is Month.
  Products can have multiple recurring prices. Each recurring price must have a different recurrence period. For example, you could sell a product at $10 per month or $28 per quarter.
  Select from the following recurrence period options:
  - Bill Cycle:The recurrence period matches the customer's bill cycle. For example, if the customer has a Monthly bill cycle, the product is charged once per month. If the customer has a Daily bill cycle, the product is charged once per day.
  - Day: Daily.
  - Week: Weekly on the same day of the week.
  - Two Weeks: Every two weeks on the same day of the week.
  - Twice a Month: Twice per month, which is different than every two weeks. For a 30-day month, the recurrence period would be 15 days instead of 14 days.
  - Month: Once per month.
  - Two Month: Once every two months.
  - Twelve Weeks: Once every 12 weeks.
  - Quarter: Once per quarter of the year, or once every three months, which is four times in a 12-month cycle.
  - Four Months: Once every four months.
  - Twice a Year: Once per half year, or once approximately every six months, which is two times in a 12-month cycle.
  - Year: Once in a 12-month cycle.
  - Two Years: Once in a 24-month cycle.
  - Three Years: Once in a 36-month cycle.
  - Four Years: Once in a 48-month cycle.
  - Five Years: Once in a 60-month cycle.
  The following examples show how bill cycles and service periods work together to achieve a product and billing model that meets your business needs:
  - In a B2C environment, you want to invoice your customers based on the signup date for the service. You use a Daily bill cycle and a recurrence period of Month, Quarter, and Year for three different price points and invoicing periods.
  - In a B2B contracts business, you want invoice your customers on the first day of the month to help their finance team align pricing. You use a Monthly bill cycle with a recurrence period of Month.
  - You want to invoice the customer annually for a monthly recurring product. You set their billing account to a Yearly bill cycle so they receive one invoice a year with a separate line for each month’s recurring price.
  The recurrence period is not available for one-time products or one-time prices. A child Add-On product inherits the service period from the parent subscription product if the child Add-On product matches the price’s recurrence.
  The recurrence period and currency combination must be unique. You can create multiple combinations per product.
- Currency — Select the currency to use for this price. These categories are created in the Setup application’s Charge Categories modules. Refer to Charge Categories Module for more information.
- Billing Type — Only for Recurring charges. Select a billing option for recurring prices:
  - Bill in Advance: Billing occurs at the beginning of the service period, before services are rendered. The customer will be invoiced for the service on their next bill cycle run. Also, complete the following fields:
    - Additional Bill in Advance Quantity: Enter a whole number value (1-999) for the number of periods to bill in advance.
    - Additional Bill in Advance Period*: Select a period of time to bill in advance. This becomes available after you enter the amount (number of periods) to bill in advance. When combined, the two options determine the length of time to bill in advance. Options are Bill Cycle, Day, Week, Month, or Year. For example, to bill for 3 months of service in advance, enter 2 for the amount and select Month for the period.
  - Bill in Arrears: Billing occurs at the end of the service period, after services are rendered.
- Valid From* — The date the price becomes valid and can be used for purchase. The Valid From date must be equal to or later than the Introduction Date for the product. For an Active product, Valid From cannot be earlier than the current date and time and can be equal to or later than the Product Introduction date.
- Price Group — Select a price group to assign this product to a group of products with related volume pricing for quantity or usage. Price groups allow you to implement a volume pricing strategy across multiple services, rather than having tiered or tapered pricing apply to only one service at a time.
  For example, you can use a price group to track usage volumes across periods within a calendar year, where multiple accounts and multiple services can contribute to the total usage consumed. This means that a parent holding company could have five child accounts that are invoiced individually, but the usage for each account is combined to determine which tier to use for rating of usage on each individual child account. Price Groups are created in the Products application’s Product Price Groups module (refer to Product Price Groups Module).
- Price Override checkbox — Select this checkbox to allow the price to be overridden at the time of order. If this is not selected, the price cannot be changed on the order. Refer to the Price Override knowledge base article for more information about overriding prices.
- Pay on Purchase checkbox — Select this checkbox to require payment at the time of purchase when this product is added to an order.
- Tapered Pricing — Select this checkbox to enable tapered pricing based on the quantity purchased within each price category. Once a customer fills up a tier at a particular price, they move to the next tier and are charged a different price.
  For example, if each tier defines a range of ten units of the product with a price difference of $2 per tier, and the customer purchases 28 units of the product, then the total is $506.60:
- Auto-Payment Required checkbox — For Recurring prices only. Select this checkbox to require that an automatic recurring payment method be set up for the customer when this product is added to an order.
- Price Proration — Only for Recurring prices. Select any of the following checkboxes to reduce the price charged for an initial or final service period when the service changes in mid-bill cycle.
  - On Order: If a customer takes delivery of the product during a current billing cycle, the prorated amount is the amount owed for the remainder of the current billing cycle. For example, if the customer starts monthly service on Jan 15th with a service period of Jan 15-Feb 14 and their monthly bill cycle invoices on the 1st of every month, they are billed for the active portion (Jan 15-Jan 31) of the first service period. If this option is not selected, the customer will be billed for the full month.
  - On Cancel: If the customer cancels the product or service before the end of the billing cycle, the customer pays only for the time that the product was used. If a customer ends monthly service on Aug 15th and their monthly bill cycle invoices on the 1st of every month, instead of being billed for the full month on the final invoice, they are billed for Aug 1-Aug 15. Select this option if you want to refund a partial amount to your customer when they cancel the service in the middle of a period. Many subscription providers do not provide refunds but rather let the customer use the service until the end of the current period and then cancel or deactivate the service.
  - On Order – No Charge: The product price is prorated on the order, but the customer is not charged the prorated amount. If a customer takes delivery of the product during a current billing cycle, the prorated amount is the amount owed for the remainder of the current billing cycle, but the customer is billed for the first month’s partial service period at $0. This option is rarely used.
- Price Tiers* — Tiered pricing uses a single price depending on the total quantity over the service period or at the time of order. The price is based on the rate assigned to the tier that usage falls into. For each tier, enter an ending quantity and price. Click Add Price Tier to add another tier.
  - Starting Qty (exclusive): Gotransverse automatically provides the starting quantity for each tier based on the previous tier's ending quantity, starting with zero. You cannot change this value.
  - Ending Qty (Inclusive): Enter the ending quantity for the tier. This must be greater than the starting quantity for the tier and left empty for the last tier. This automatically becomes the starting quantity for the next tier. You can include no more than 17 digits before the decimal point.
  - Price* : Enter the amount to charge for the product. The price is required if there is another tier after this one. Leave this empty for the last tier.
  NOTE: The following system settings apply to price tiers (refer to System Settings):
  - Maximum number of tiers allowed for tiered pricing. Controls the number of tiers that are available. For example, when this setting is set to 5, you can add up to five tiers. When this setting is set to 1, you cannot have any tiers and can only enter a price.
  - Show product price maximum fractional digits. When set to True, you can set up to five fractional digits in the price. When this setting is set to False, fractional digits are based on the currency, which is rounded to two decimal places. Exceptions to the two decimal rounding are Chile Peso, Iceland Krona, Japanese Yen, and South Korean Won.
Click Create.

Topic updated: 05/2024.