Customize Usage Billing with Consumption Schedule Billing Rules

We added billing rules, tax rules, and revenue recognition rules to consumption schedules. You can now invoice a usage summary using different rules from its parent subscription order product.

Where: This change applies to Salesforce Classic and Lightning Experience in all Salesforce CPQ and Salesforce Billing editions.

Who: You need Salesforce CPQ to install Salesforce Billing. Some subscriptions offer this package for an extra cost. For pricing, contact your Salesforce account executive.

Why: If you previously used price schedules with your usage products, Salesforce Billing invoiced the order product and its usage summaries based on the order product's rules. With independent sets of billing rules on consumption schedules, you have more flexibility with invoicing, tax calculations, and recognizing revenue for your usage summaries. For example, you could tax the usage order product while keeping its usage summaries tax-free. You could also record usage summary transactions into a separate GL account from usage order product transactions.

How: To enable usage based pricing, install the CPQ managed package or update it to the latest version. Then, turn on usage based pricing in the CPQ package settings. From Setup, enter Installed Packages in the Quick Find box and select Installed Packages. Find the CPQ Package and click Configure. Navigate to the Pricing and Calculation tab. Select Enable Usage Based Pricing.

When you create a consumption schedule, provide Billing Rule, Tax Rule, and Revenue Recognition Rule fields. When a sales rep orders a usage-based product related to a consumption schedule, Salesforce Billing creates an order product consumption schedule that inherits all the rule field values from the original consumption schedule. Each order product usage summary looks up to an order product consumption schedule. When Salesforce Billing invoices a usage-based order product, it bills the usage summaries based on the order product consumption schedule rules and treatments. Meanwhile, it bills the order product based on the order product rules and treatments.