What is NetSuite SuiteBilling?
The traditional NetSuite pricing structure addresses the essentials of associating a base price along with subsequent quantities and online pricing to items; however, it falls short in managing high volumes of billing and subscription tasks with specific start and end dates for clients. This introduces us to the Add-On Module of SuiteBilling, which not only focuses on varied pricing but also enhances visibility into flexible billing schedules and automated invoicing, offering real-time insights into billing and financial operations. Consequently, SuiteBilling serves as a fundamental billing framework for subscription-driven enterprises, where pricing and billing operate in conjunction with actual customer consumption in a measured manner!
SuiteBilling Pricing Models
SuiteBilling offers a predefined collection of Pricing Models supported by the system:
Flat Model
Bill customers the same amount during each billing cycle.
Example: Consistent monthly charges for using editing software, regardless of other parameters involved.
Volume Model
Determined by consumption and quantity related to the transaction, this can also be referred to as quantity-based pricing. This approach is often employed to boost sales over time.
Example: Spotify charging $99 for a month but offering $799 for the full year, nudging customers to select a 12-month subscription over monthly renewal, thereby improving monthly sales figures.
Tiered Model
In this model, the rate for each unit of consumption or entitlement tier is applied within a specified range. The final total rate consists of varying per-unit rates to calculate the end amount.
Example: Electricity billing based on usage units where the price per unit is regulated by set boundaries. Internet Data Packs providing access based on levels of data usage.
In addition to the diverse pricing options available, SuiteBilling offers these added benefits that enhance its appeal:
SuiteBilling Rating Models
SuiteBilling not only features pricing models but also presents an option for the Rating Model. Users can decide whether billing subscriptions are one-time charges, recurring fees, or billed either in advance or in arrears. This combination of straightforward subscription setup and management, along with flexible rating models, greatly improves the efficiency of the billing process.
Billing Accounts
SuiteBilling supports multiple billing accounts for a single customer along with sub-customers.
For instance, a customer owning franchises may need the license fees billed to the parent company whilst service fees are directed to sub-customers.
Change Orders
SuiteBilling facilitates the scheduling and automation of subscription changes, allowing you to avoid manually tracking customer subscription modifications. Any adjustments to prices and/or quantities can be executed immediately or scheduled for a future date utilizing a change order.
Revenue Recognition
SuiteBilling integrates with NetSuite’s Advanced Revenue Management, eliminating the need for separate software to tackle this complex accounting area, ensuring compliance with revenue recognition standards. Thus, SuiteBilling stands out as a dedicated subscription billing solution focused on customer invoicing and billing, ensuring tailored pricing and discounts that lead to real-time financial reporting of billing and financial information.
