Create Recurring Charge Price

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 charge price to a product:

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

Product Catalog Products Section

Click the icon in the left pane to hide it. Click the icon to open it.
In the Products section, click the name of the product to edit to open the Product Details window.

Product Details Window
In the Standard Prices section, click the Action button and select Create Recurring Charge Price to create a price for items with recurring charges (for example, a service plan).

Normally, either a one-time charge price or a recurring charge price would be used, but both can be used at the same time on the same Subscription product as needed.

NOTE: If you use the Avalara Communications Tax processor, your Standard Prices section includes a Tax Mode column.

Standard Prices Section for Avalara Communications Tax Users
On the Manage Recurring Charge Price window, enter the required and relevant information:

Managing Recurring Price Window

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 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.
- From Date* — The date the product starts and can be purchased.
- Tax Mode — For users of either the Avalara Communications or Internal Tax (Tax Essentials) tax processor. Select an option from the 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.
- Tax Mode — For users of either the Avalara Communications or Internal Tax (Tax Essentials) tax processor. Select an option from the 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.
- 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.
- Prorated on Order checkbox — Only for Recurring. If selected, the service period start day of month will align with the bill cycle run start day of month and a charge will be added to the invoice for the prorated period from the order item approval date to the first service period end date. If the service has usage rule(s) with an allowance, the allowance amount will be prorated for the first service period.
- Prorated on Order - No Charge checkbox — Select to prorate the charge price of the product when the first service period starts midway through the account's bill cycle but the account will not be charged for the prorated amount. The prorated amount is the amount owed for the remainder of the bill cycle.
- Prorated on Cancel checkbox — Only for Recurring. If selected, the amount charged for the service period including the deactivation date will be reduced by the prorated amount from the day following the deactivation date to the end of the service period. If the service has usage rule(s) with an allowance, the allowance amount will be prorated for the final service period.
- 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:
- 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.
- 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.
- Pay on Purchase checkbox — Select this checkbox to require payment at the time of purchase when this product is added to an order.
- 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.
- Product Price Group — Select the price group that you want to associate with the charge price. Refer to Product Price Groups Module for more information about these groups.
- Tier 1 — Tiered pricing defines a price per unit within a range. Use this line to specify prices for the product. Each service price range is one tier in price.
  
  For example:
  - Buy 1-3 of the item and the price for each is $99.99.
  - Buy 4-7 of the item and the price for each is $79.99.
  - Buy 8-20 of the item and the price for each is $49.99.
  - Buy 20 of the item and the price for each is $16.99.
  Enter the quantity and price.
  - Starting Qty: Enter the starting quantity for the range. For example, if the range is 4-7 for $79.99 each, then the Starting Qty is "4".
  - Ending Qty: Enter the ending quantity for the range. For example, if the range is 4-7 for $79.99 each, then the Ending Qty is "7".
  - Price: This number is required if there is another price range and tier after this one. If this is the last price range and tier, then an entry is not required. Enter the price of the range, if needed, in this box in the format: nn.nn (numeric for dollars and cents).
When you have entered all required information, click Finish to save the price and close the window. The pricing information is shown in the Standard Prices section.

Topic updated: 05/2024.