Minimum Fee Pricing

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Certain business models require invoicing a minimum fee, usually on a monthly base, irrespective of the actually incurred costs. Minimum fee pricing is typically used with transactional (usage-based) items (see Usage Data Billing).

With JustOn Billing & Invoice Management, you can put such scenarios into practice as follows: You create a subscription item with the billing type Minimum Fee. The price of this item represents your base charge. The subscription items that you intend to charge up against this minimum, like usage data items, for example, must be marked as included accordingly.

Now if the sum of the included items is lower than or equal to the minimum price, only the minimum fee item shows up on the invoice as a single invoice line item. If, however, the sum of these grouped items is larger than the minimum price, the individual items appear on the invoice as individual invoice line items. Any items not marked as included in the minimum are not subject to this calculation.

For transactional items, there are two modes for applying the minimum comparison:

• Global minimum: Compares the sum of all included items to the minimum
• Group minimum: Compares the sum of included items that are grouped by a transaction criterion to the minimum

The corresponding calculations are performed on net prices.

See the example:

A mobile phone service vendor invoices a monthly base price, and calls, text messages and internet data are charged up against this minimum. One month, the sum of incurred usage data costs is lower than the base price, so only the base price is invoiced. Another month, the sum of incurred usage data costs is higher than the base price, which makes them appear individually on the invoice.

Items	January Costs	February Costs
Base Price	5,00 €	5,00 €
Calls	1,50 €	1,90 €
Texts	1,80 €	2,70 €
Data	1,20 €	2,30 €

	January Invoice	February Invoice
Invoice Line Items	Base Price 5,00 €	Calls 1,90 € Texts 2,70 € Data 2,30 €
Total	5,00 €	6,90 €