The following example will clarify the above concepts:

Example:

Context: An equipment rental business

Note: BluSynergy also has the differentiation based on Product. Hence if your organization needs this differentiation this can be enabled from System>>Configurations>>OrderConfiguration

Plan

Definition: A Plan is a scheme for offering a product on a recurring subscription. It essentially is a collection of Charges along with parameters such as billing period, due date intervals, availability periods, etc. A Plan must have at least one Charge in order to produce an invoice.

From the above example, the Plan Code is a unique identification for the plan Video Rental Unlimited Plan which is monthly subscription plan. The due date for the plan is 10 days which means that from the date of invoice generation for the plan, you have 10 days to make the payment.

Charge

Definition: A Charge defines a discrete price related to the Plan. Each charge will be represented as a line item on the invoice. This facilitates the creation of plans with multiple pricing components (eg: an initial setup fee plus a monthly recurring fee)

From the above example, the plan has 3 charges which are One time setup fee $99, Monthly subscription fee, $10/mo and Service Tax, 10%

The Price Code C1 is for the Charge One time setup fee $99 where it's a One Time Charge charged for the setup of Video Rental Equipment.

The Price Code C2 is for the Charge Monthly Subscription fee where it's a Recurring Charge charged for the Monthly subscription of $10

The Price Code C3 is for the Charge Service tax, 10% where it's a Recurring Charge which deducts 10% tax on the charges C1 and C2.

The above Fig 3.3 shows System Navigation to enable or disable Products

Exercise 1 – Create some sample Plans and Charges relevant to your organization. [30 minutes]