Enable Usage Pricing Terms

We’ve enhanced usage rating to deliver more accurate, time-aware pricing out of the box.

• Apply Pricing Terms (markup/markdown), Date Effective Charge Adjustments, and Redwood-only Advanced Pricing Terms during quantity- and amount-based usage rating (Allowances, Estimates, Commitments, Volume, PayGo, Pre-rated).
• Respect effective dates and sequencing across adjustments; partial period changes automatically split bill lines, and summarised usage maps to the correct bill lines.
• Overage and net price calculations are more precise:
  • Overage: Apply the Pricing Term factor to bill line amounts.
  • Amount-based: Net Price = List Price – Charge Adjustments (including Pricing Term) – Allowance Amount.
• Price escalations can be fixed or formula-driven per charge and are applied via the “Generate and Apply Price Adjustments from Price Escalations” ESS job. Either a pricing term or price escalation can be active for a charge.
• Administration:
  • Pricing Terms and Price Escalations are set on draft subscription products; Pricing Terms can be updated on active subscriptions and take effect on subsequent ratings.
  • Adjustments carry forward through amendment, suspension/resumption, and renewal. No impact to invoicing or RMCS.
  • FOM supports pricing terms and basic charge adjustments; date-effective adjustments and price escalations are not supported in FOM.
  • Not supported: mass update and evergreen subscriptions.

More accurate bills aligned to contract terms and effectivity, reduced manual corrections, and greater pricing flexibility with minimal operational overhead.

Steps to enable and configure

You don't need to do anything to enable this feature.

Tips and considerations

For more information on Advanced Pricing Term refer to this page: https://docs.oracle.com/en/cloud/saas/readiness/sales/26b/ssma-26b/26B-subscription-wn-f43209.htm