Recurring pricing

Recurring pricing refers to the standard pricing model in which a customer is billed periodically, for the ongoing usage of a product. The most common use case for a recurring pricing type is a subscription fee. The Solvimon platform has two pricing method types for products with recurring charge types, they are described below.

Flat fee

The most commonly used pricing type is a flat fee, where a fixed amount is invoiced per billing period. When choosing the flat pricing type for product items with the recurring charge-type

Non-billed

Another option in to actually set a product item to non-billed. It means you can exclude a certain product item from being charged in a certain plan without having to create a new product that does not include the product item you do not want to price. Selecting this pricing type means the product item will not be priced and does not show up on the invoice.

Non-billed pricing items are also not shown on a pricing plan version overview - but you can toggle the visibility of these pricings in the version menu.

Proration of amounts

In case a customer starts their subscription later than the 1st of the month (in case of monthly billing) or later in the year (in case of yearly billing), and the subscription is set to CALENDAR billing - the amount on the invoice will be prorated. The invoice is prorated based on the number of days that are in the billing period versus the total number of days of that billing period.

Proration also occurs when a pricing item is configured for a different billing period than the subscription billing period. For instance, if a recurring pricing item that is set to $150 per month is configured in a Subscription that has a billing period set to once every 3 months, the amount charged on the invoice of that customer will be 3 x $150 = $450.

It also works the other way around: pricing items with a billing period set to 1 year, will be prorated on a monthly invoice based on days. A charge of $500 per year will be charged on an invoice with a subscription billing period of 'every 2 weeks' as $500* 14 / 365 = $19.18