Charge Basics

Charges determine how Products are billed to a customer. Charges created in Ordway are always connected to a Product within a Plan. Multiple Charges can be added to a Plan. Charges are bundled in a Plan for simplicity.

Charge Configuration

Billing Information

A variety of settings are available to customize the Product pricing. The available settings described below can be configured for a wide range of billing and accounting behaviors. 

• Charge Type - Read more about Charge Timing.
  • One time - Pay this Charge only once.
  • Recurring - Pay this Charge at a set price more than once.
  • Usage Based - Only pay this Charge based on what is consumed. 

• Pricing Model - Read more about Ordway's Pricing Models.
  • • Per Unit - Pay a set price per item regardless of the total quantity.
    • Volume - Pricing is determined by the total number of items purchased.
    • Tiered - Specify pricing tiers for a set amount of units similar to Volume Pricing. However, with tiered pricing, the cost per unit or flat fee are included from each tier until the total number of units has been met. 
• Charge Timing 
  • Initial - Fees that occur at the start of a contract such as setup or initiation fees.
  • Termination - Cancellation charges when cancelled prior to the end of the term. 
• List Price - Although the Product already has as associated List Price, Charges added to a Plan require a List Price.  The price can be adjusted based on customer negotiated terms. 
• Charge Billing Date - There are three options for when the Customer will begin accruing charges. These dates are essential to the billing structure as each Charge can have its own separate billing date.
  • • Contract Effective Date - Date the Contract is signed and activated.
    • Service Start Date - Date customer starts using the services. 
    • Billing Start Date - Billing effective date; as a customer can be granted a period of service without being billed such as a free trial.

Revenue Information

Charges can be included in Revenue Allocation. Read more about Fair Market Value.