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What is NetSuite SuiteBilling?
Where the legacy NetSuite pricing model covers the basics of attaching a base price and subsequent quantity and online pricing to items –it lacks in handling huge volumes of billing and subscription processes with a unique start and end date for customers.
And that brings us to the Add-On Module of SuiteBilling which concentrates not only on different pricing but gives more insight into flexible billing schedules and automated invoicing providing real-time visibility into billing and financial activity.
Thus, SuiteBilling is a core billing functionality model for subscription-based businesses where pricing and billing go hand in hand based on actual consumption made by the customer in a metered manner!
SuiteBilling Pricing Models
SuiteBilling comes with a pre-defined set of Pricing Models supported by this system as follows:
Flat Model
Charge customers the same value in each billing cycle.
Example: Month on month rental charges for using an editing software irrespective of any other parameters attached to it.
Volume Model
Based on consumption and quantity involved in the transaction. This can also be called as quantity-based pricing. This is frequently used to increase sales for a period.
Example: Spotify charging $99 for a month however charging $799 for the entire year making the customer to evidently choose 12 months subscription over a monthly 1 month assuring the sales figure to boom every month.
Tiered Model
Where rate of each unit of consumption or entitlement tier id applied to a given range. The total end rate value is comprised of varying per unit rates to achieve the final amount to change.
Example: Electricity consumption based on units where the price per unit is governed by boundaries. Internet Data Packs giving access to Data based on the scales of unit’s usage.
Apart from the pricing varieties available for a customer to choose SuiteBilling homes these set of added advantages giving it an edge;
SuiteBilling Rating Models
SuiteBilling not only has pricing models, but also gives us an option to use the Rating Model. Whether we want billing subscriptions to be one-time charges, recurring fees or in-advance or in-arrears. This combination of easy subscription setup and maintenance along with flexible rating models significantly increases the billing process efficiency.
Billing Accounts
SuiteBilling allows multiple billing accounts for a single customer and sub-customer.
For example, a customer having franchises needs the license fee charged to the parent company and the service fees need to be billed to sub customers.
Change Orders
SuiteBilling allows you to schedule and automate changes to subscriptions meaning you don’t need to manually monitor and track customer subscription changes. Any alterations to prices and/or quantities can be made immediately or scheduled for a later time using a change order.
Revenue Recognition
SuiteBilling has the NetSuite’s Advanced Revenue Management linked within thus, there’s no requirement for additional software to accomplish this tricky area of accounting as it is compliant with revenue recognition rules.
Thus, SuiteBilling is a unique subscription billing tool which exclusively concentrates on customer billing and invoicing guarantying customer specific pricing and discounting leading to real time financial reporting of billing and financial data.
