Creating Price Plans
Every item in a subscription plan needs a price plan. You also must create price plans for every pricing interval in a price book.
When creating a subscription using the standard form, a subscription plan and price book aren't needed. Creating a subscription with only add-on items simplifies creating a subscription. To learn how to create a subscription without a subscription plan or price book, see Optional Subscription Plan and Price Book.
When creating a price plan, the quantity for each item must be more than zero (0). When modifying the price plan, you can't set the quantity to zero (0) or a negative number.
Volume pricing charges all units at the same rate based on the quantity.
For high-level overview diagrams of the workflows that include this procedure, see Subscription Plan Creation, New Stand-Alone Subscription Creation, and Subscription Creation from a Sales Order.
To create a price plan:
-
From the Price Books subtab of the subscription plan record, select an existing price book.
If you haven't already created a price book, follow the instructions in Creating Price Books.
-
Set up the price plan:
-
Click an item's edit icon to open the price plan window.
Note:You can also click an existing price plan's edit icon to edit it.
-
From the Type list, choose a type:
-
Tiered – Typically used for recurring items. Tiered pricing charges a set rate for all items in a tier (for example, the first 10 items). If the quantity sold exceeds the tier upper limit, the extra items are charged the next tier's price.
Example:
Consider a beverage subscription with these tiered pricing levels:
Tier 1: 0–10 items, $5.00
Tier 2: 11–20 items, $4.95
Tier 3: 21+items, $4.90
For a 22-item order, the charge would be (10 x $5.00) +(10 x $4.95) +(2 x $4.90) =$109.30.
-
Volume – Typically used for usage pricing. With volume pricing, the total quantity determines the charge rate for all items in the order.
Example:
Consider a beverage subscription with these volume pricing levels:
Tier 1: For 0-10 items, $5.00
Tier 2: For 11-20 items, $4.95
For an 8-item order, the per-item charge is $5.00. The total charge would be (8 x $5.00) =$40. For a 22-item order, the per-item charge drops to $4.95. The total charge would be (22 x $4.95) =$108.90.
When creating a price plan, you can set minimum and maximum limits for pricing tiers. See Price Plan Minimum and Maximum Amounts.
-
-
From the Pricing Option list, choose an option:
-
Rate – Calculates the item amount as (quantity x rate).
-
Fixed Amount – The item’s charge amount doesn't change with quantity.
-
-
In the Value field, enter the item's charge amount.
-
To set pricing for more quantities, click Add.
-
-
Repeat step 2 for each remaining item in the price book. Each item in a subscription plan needs a price plan.
-
Click Save to submit the price plan. NetSuite returns to the Price Book page and shows the new price plan.
-
From the Charge Frequency list, choose Weekly, Monthly, or Annually.
-
For non-one-time items, from the Repeat Every list, set how often to charge. For example, to charge monthly, select Monthly from the Charge Frequency list and enter 1 in the Repeat Every field.
-
Click Save to save the price book.
Related Topics
Price Plan Minimum and Maximum Amounts
Use the Minimum Amount and Maximum Amount fields on the Price Plan record to set overall minimum and maximum charges per period. If the tier setup calculates a value below the minimum or above the maximum, the the Minimum Amount and Maximum Amount fields override it. This feature lets you set overall minimum and maximum charges while still calculating tier structures separately.
Only when Advanced Subscription is enabled, the following optional new fields are added to the Price Plan record:
-
Minimum Amount
-
Maximum Amount
Tier-Level Minimum and Maximum
You can set minimum and maximum limits for pricing tiers. Consider the following pricing tier examples. Prices and discounts are tiered based on the quantity purchased:
-
0–100 recurring licenses, $3.00
-
101–200 recurring licenses, $2.00
-
201+recurring licenses, $1.00
If you enter a minimum amount of $150, that would force customers to buy at least 50 licenses, even if they only need 1.
You can also set a discount that caps the cost at a certain price. If you set a maximum charge of $500.00, customers don't pay extra for licenses after spending that amount.
Volume tiers can have a maximum price. Usually, you only need a maximum price for the top tier.
If a change order updates the price plan mid-period, the minimum and maximum amounts are prorated.
Example: Consider a customer who subscribes to your news website that has a minimum charge of $10. You submit a change order April 13. The minimum prorated charge for April 1-12 is calculated as:
(days used ÷total days in the month) x minimum charge
4 =(12 ÷30) x 10
The minimum prorated charge for April 13-30 (18 days), is calculated as:
(days remaining ÷total days in the month) x the minimum charge
6 =(18 ÷30) x 10
To learn SuiteBilling change order fundamentals, see SuiteBilling Change Orders.