topic Re: Billing Frequency Behaviour in Sales Integrations

Billing Frequency Behaviour

SVenkatesan — Wed, 17 Jan 2024 09:52:26 GMT

Assume in my products list, I have a plan called "PLAN A" where the unit price of this product is 600 $ per year meaning my billing frequency is set to Annual.

I'm trying to use this product in my line item or quote.
My line item looks like
IMAGE 1, where MY MRR is 5000$ which is right.
IMAGE 1

But when I change the billing frequency to Monthly for the same line item, MRR is 60000$ which is wrong. It looks like the system takes unit price equal to what billing frequency is chosen as per IMAGE 2

IMAGE 2

Ideally, billing frequency is just how many number of times prospects are billed in a year(term). it should consider what is set in the product catalogue. Since unit price and billing frequency are editable. Could not find the solution for it.
Can anyone please help me with this?

Re: Billing Frequency Behaviour

trevordjones — Wed, 17 Jan 2024 10:33:45 GMT

Hi @SVenkatesan ,

In the second scenario, you need a monthly recurring product with a $50.00 monthly price point. Then, 100 units will produce the desired annual contract value of $6000.

The products in the line items tool aren't designed to take an annual product and "do the math" to make it a monthly product.

Re: Billing Frequency Behaviour

SVenkatesan — Wed, 17 Jan 2024 11:25:50 GMT

So, every time I have to create separate products for each billing frequency.
In that case, is it possible to restrict billing frequency changes by any user?

Re: Billing Frequency Behaviour

trevordjones — Wed, 17 Jan 2024 13:50:39 GMT

Hi again @SVenkatesan ,

Unfortunately there is currently no way to restrict how users can apply line items on quotes without custom code. Working within HubSpot's current architecture the best we could do us use smartl ists to generate a list of probable errors, coulpled with a workflow to notify users and/or assign tasks to correct errors when they occur.

HubSpot's CPQ tool is still very new, so I am sure we will see more flexibility as time goes on. In the meantime, you might search the App Marketplace for a comprehensive CPQ Tool that offers you more flexibility.