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Administrator Guide
Last Updated: 2024-09-20
Create and Edit Usage Billing Rates

Create and Edit Usage Billing Rates

Create or edit a customer contract with a usage-based contract line. See Create Customer Contracts.
Create a usage billing rate to define the billing rate for usage-based transactions.
When you:
  • Create a usage billing rate, Workday populates the effective date with the customer contract effective date.
  • Edit a usage billing rate and change the effective date, Workday saves a snapshot of the usage billing rate. You can view saved usage billing rate snapshots on the
    History
     tab of the
    Edit Usage Billing Rate
     task.
  • Edit a usage billing rate and keep the same effective date as an existing snapshot, Workday updates that existing snapshot.
  • Recalculate usage-based transactions, Workday uses the transaction date to determine which effective dated usage billing rate snapshot to use for the calculation.
  • Edit a usage billing rate, Workday updates all usage-based billable transactions on or after the effective date, that haven't been invoiced yet, for all usage-based customer contract lines that use that usage billing rate.
  1. Access the
    Create Usage Billing Rate
     task.
    You can access the Create Usage Billing Rate task from the
    Usage Billing Rate
     prompt on usage-based customer contract lines.
  2. As you complete the header information, consider:
    Option Description
    Effective Date
    Specify the effective date for the usage billing rate. The effective date enables you to price usage-based transactions based on that date, and report on usage billing rates based on that date. When you add an effective date on a usage billing rate and configure usage billing rate pricing tiers, Workday uses the reset frequency and effective date to reset the pricing on the usage billing rate.
    Pricing
    • Tiered
      : Prices are assigned per unit based on quantity ranges.
    • Volume
      : A single price is assigned for all units based on total purchase quantity.
    See Concept: Usage-Based Contract Pricing for examples and more information.
    Reset By
    Resetting restarts the pricing at the lowest quantity level.
    • Period
      : Pricing resets at the frequency and date you select; for example, on the first day of each month. Workday uses the reset frequency and effective date to reset the pricing on the usage billing rate.
    • Transaction
      : Each transaction is evaluated separately.
    See Concept: Usage-Based Contract Pricing for examples and more information.
    Minimum Count and Minimum Amount
    You can enter a minimum count or minimum amount to specify a number of units that are to be deducted from the calculated amount to bill before invoicing.
    • Minimum Count
      : The number of units to be deducted.
    • Minimum Amount
      : An amount converted into a number of units to be deducted.
    Minimum Commitment
    To specify a minimum amount to be billed per period, select a
    Recurring - Fixed Term
     contract line that defines the amount.
  3. Define your pricing tiers.
    Select
    Max Tier
     to define a tier as the uppermost quantity tier.
  4. (Optional) After creating a usage billing rate and submitting the contract, if you want to edit the usage billing rate, select
    Usage Billing Rate
     >
    Edit
     from the related actions menu of the usage billing rate on the usage-based contract line.
    Keep the
    Edit As Of
     date the same as an existing usage billing rate snapshot if you want to update that snapshot, or change to a different date if you want to create another snapshot. You can view the usage billing rate snapshots on the
    History
     tab.
    Workday applies usage billing rates to usage-based billable transactions according to the effective dates. See Example: Reset Usage Billing Rates.
Workday creates the usage billing rate, which you can select on usage-based contract lines.
You can use these reports to view the effective date history of the usage billing rate:
  • View Usage Billing Rate History
    : View the effective date history for the usage billing rate. You can access the report from the
    History
     tab.
  • View Usage Billing Rate as of Date
    : View the usage billing rate as of an effective date. You can access the report from the related actions menu of a usage billing rate by selecting
    Usage Billing Rate
     >
    View As Of
    .
Existing usage billing rates without effective dates are automatically converted to include an effective date of 1900-01-01. To prevent issues during conversion, when you edit any usage billing rate, use an effective date other than 1900-01-01.