Percent pricing model

The percent pricing model is one of the pricing models. This page explains how it calculates the amount of a pricing preset.

Map of concepts

Concept	Details
Percent pricing model	The percent pricing model charges a percentage of the quantity of each period. The quantity is usually an amount of money.
Point-in-time products	If the product is a point-in-time product, each billing period costs the percentage of its own quantity.
Period-of-time products	If the product is a period-of-time product, the percentage applies to the average quantity of each pricing period. The period ratio converts the result to each billing period.
Partial periods	If a billing period is only partly covered, the partial-period handling decides whether the amount is prorated.
On-demand quantities	If a period-of-time product uses the on-demand quantity strategy, each quantity costs the full percentage in the billing period in which it occurs.
Percent pricing model on a line item	A line item can override the percentage and the pricing period.

The following modules use the percent pricing model:

Module	Details
Products	A pricing preset can use the percent pricing model. For the steps, see Set up the percent pricing model. For the fields, see Percent fields.
Contracts	A line item calculates its charges with the percent pricing model of its pricing preset, and can override its values. The billing of the line item decides the billing periods. See Line item: billing.

The percent pricing model is the pricing model that charges a percentage of the quantity. The percent pricing model has one value: the percentage, in Percentage of amount. For each period, the amount is the percentage of the quantity of that period:

amount = quantity × percentage / 100

The quantity is usually an amount of money, such as the total value of the transactions of a customer in a period. A billable metric measures it. The amount is in the currency of the pricing preset. Zenskar does not convert the quantity between currencies. The percentage can be from 0 to 100, with up to 6 decimal places. A percentage of 2.9 gives the following amounts:

Quantity	Amount
1,000	$29.00
12,500	$362.50
250,000	$7,250.00

Zenskar keeps the full precision of the percentage during the calculation. It rounds the amount to the currency at the end of the calculation of the line item. What a period is depends on the product type. See Point-in-time products and Period-of-time products. For a point-in-time product, the percentage applies to each quantity once, with no period attached. For example, 2.9% of each transaction. A pricing preset of a point-in-time product has no pricing period. The amount of each billing period is the percentage of the quantity of that billing period. Billing periods do not affect each other. A pricing preset at 2.9% of the transaction value, with metered usage and monthly billing, gives the following amounts:

Billing period	Quantity	Amount
January	12,500	$362.50
February	40,000	$1,160.00
March	0	$0.00

The line item decides which quantity falls in which billing period, through its quantity strategy and its billing. See Line item: quantity and Line item: billing. For a period-of-time product, the percentage covers one pricing period. For example, 1.2% of the assets under management per year. Every pricing preset of a period-of-time product has a pricing period, and the pricing period is monthly by default. Zenskar applies the percentage to the quantity of the pricing period. It converts the result to each billing period with the period ratio:

amount = quantity × percentage / 100 × period ratio

A pricing preset at 1.2% per year, with a quantity of $500,000, gives the following amounts:

Billing period	Period ratio	Amount for each billing period
Month	1/12	$500.00
Quarter	1/4	$1,500.00
Year	1	$6,000.00

The period ratio counts calendar months in the same way as for the per-unit pricing model. See Period-of-time products on the per-unit page. The quantity of a pricing period is the average quantity over the pricing period, weighted by the number of days at each quantity. When the line item changes the quantity partway through a pricing period, each part of the pricing period uses its own quantity. See Partial periods. This section describes billing periods that the line item covers in full, with the recurring quantity strategy. For the on-demand quantity strategy, see On-demand quantities.

Partial periods

The percent pricing model handles partial billing periods in the same way as the per-unit pricing model. For a period-of-time product with the recurring quantity strategy, the partial-period handling of the line item decides whether a partial part of a billing period is prorated by days or charged in full. See Partial periods on the per-unit page. A pricing preset at 14.5% per month, with a quantity of $2,000, monthly billing periods that start on the 1st, and a line item that starts on February 15, 2024, gives the following amounts for February:

Partial-period handling	Calculation	Amount
Prorate	$2,000 × 14.5 / 100 × 15/29	$150.00
Charge Full	$2,000 × 14.5 / 100	$290.00

For a point-in-time product, the pricing model does not prorate. The on-demand quantity strategy never prorates. See On-demand quantities.

On-demand quantities on period-of-time products

With the on-demand quantity strategy, a quantity occurs at one point in time, not as a level that holds over the billing periods. For a period-of-time product, Zenskar charges the full percentage of an on-demand quantity, in the billing period in which the quantity occurs:

amount = quantity × percentage / 100

The period ratio and the partial-period handling do not apply. The amount is not spread over later billing periods. A pricing preset at 1.2% per year, with monthly billing, gives the following amounts:

Quantity strategy	Quantity	Amount
Recurring	$500,000	$500.00 in each month ($500,000 × 1.2 / 100 × 1/12)
On demand	$100,000 in August	$1,200.00 in August, and nothing in the other months