For companies that offer subscription-based services, NetSuite offers a billing framework to support it. NetSuite SuiteBilling not only handles subscription pricing models but also can support usage-based consumption and other transactions in a consolidated billing engine framework. This lets companies easily create and manage subscriptions, fully integrated with Advanced Revenue Management.
Billing in itself has become a strategic differentiator. For a lot of businesses, pricing has shifted from outright ownership to fixed-term subscriptions or a hybrid of the two. The easiest example is cloud-based software, which can be billed on a flat-fee or usage basis. But this model has also become part of other industries, including telecom. How companies bill their customers, whether they’re consumer or business customers, needs to be transparent to show them the value being delivered.
However, subscription billing isn’t always a straightforward monthly charge. For companies that offer subscription services, they need to charge for one-time fees like setup fees or installation fees, as well as make sure recurring fees are charged for each billing cycle throughout the term of the agreement. For companies that bill by usage, this adds a step of complexity that requires them to pull in usage data. They need to set up fees based on consumption, which can vary from month to month. They might even need to add overage fees as specified in their customer contracts. NetSuite SuiteBilling can support all these functions.
Companies often use various pricing models for their subscription services. In addition to flat fees, NetSuite SuiteBilling also supports volume-based pricing, where the applicable highest volume rate is applied to the transactions. For example, a company might charge a premium if a customer exceeds a certain amount for usage. It also supports tier-based billing, where each unit is priced per entitlement tier within the given range.
To further streamline billing operations, NetSuite SuiteBilling can support customer-specific pricing. Companies can leverage generic templates for subscriptions and pricing, or can modify the templates for specific customer contractual terms, such as a lower negotiated rate.
Additionally, NetSuite SuiteBilling also lets companies track change orders. These change orders can go into effect immediately or can be scheduled in the future for things like pricing changes, quantity changes, or terminations. For example, a customer might decide to increase their order to take advantage of a lower pricing tier, starting at the beginning of their next billing cycle. This can be scheduled so that the customer is billed automatically.
Finally, NetSuite SuiteBilling supports various billing cycle and custom billing schedules. In addition to on-time, in arrears, and in advance billing, companies can set up accounts to bill on the first or last day of the month, or set a customer-specific billing date.
All of these features in NetSuite SuiteBilling make it much easier for companies to create sustainable subscription-based pricing and, at the same time, provide pricing transparency to their customers. Being able to customize rates or other aspects of billing for specific contracts offers flexibility to meet the needs of different customers and bill on contract terms that are favorable to everyone involved.
For more information on how MorganFranklin can help you implement and manage NetSuite SuiteBilling, visit our NetSuite Page.