Plan Charge Types allow flexibility in Ordway to bill a Customer based on specific use cases and scenarios. Plans can include multiple charges; each one with a different charge type as needed. Plan

Charge Types are determined when creating a Plan. Read more about creating a Plan in Ordway.  Ordway offers three charge types which are selected at the Charge level: 

• One-Time
• Recurring
• Usage Based

One-Time

Generally used for a one time or non-repeating fee such as initial setup, cancellation, or termination fee.

Examples: A connection fee paid at the beginning of a contract, setup fee, or delivery charge. 

Recurring 

These charges are most commonly used in Subscription Contracts to reflect charges billed on a periodic basis. Billing frequency can be established in multiples of days, weeks, months, financial periods, or years.

In addition, each charge can be customized with separate billing period boundaries and billing date allowing you to specify the billing period by calendar month with a partial period proration or it can be configured it to start the day the customer signs up. 

Example: A Monthly service contract. 

Usage Based

These charges are used to track metered variable usage when charging for a product based on the number of units consumed. Usage based charges are due at the end of the billing time frame and the Customer pays only for what is used. 

Example: A cell phone plan that charges customers based on the number of gigabytes consumed during a period. 

Recognize on invoicing is not recommended as a Revenue Recognition Rule for usage based charges because revenue is typically recognized in the financial period of the usage record date and invoiced in arrears.

Using Plan Charge Types

Plan Charge Types are determined when creating a Plan. Read more about creating a Plan in Ordway.