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Tiers Billing Rules

Overview

Tiered Billing Rules allow you to apply cost adjustments or discounts based on usage or cost thresholds. This feature is particularly useful for implementing free-tier allocations, volume-based discounts, or graduated pricing models similar to cloud provider offerings.

The rule adjusts costs according to tiered margin logic and can either create a new custom service line in the account or apply directly to the service classified as a Family Type called "Tiers".

Key Features

  • Usage-based or Cost-based Tiers: Configure rules based on actual usage quantities or total costs.
  • Flexible Margin Types: Apply discounts or markups using either fixed rates or percentages.
  • Free Tier Support: Provide 100% discounts for initial usage amounts.
  • Custom or Inline Application: Choose to create separate custom service line items or apply adjustments directly to existing services.
  • Multi-tier Support: Define multiple pricing layers with the "Add Tier" functionality.

Creating a Tiered Billing Rule

Step 1: Select Margin Type

From the "Create Billing Rule" dialog, select Tiers from the Margin Type dropdown.


Step 2: Choose Tier Type

Select between two tier types:

  • Usage-Based Tiers: Configure tiers based on actual usage quantities. When selecting Usage:
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Required

At least one of Quantity Type or Usage Type must be selected. A validation message will appear: "At least one of Quantity Type or Usage Type filters must be selected"

  • Cost-Based TiersConfigure tiers based on total cost amounts. When selecting Cost:

    • Cost Measurement: Choose how costs are calculated (e.g., Amortized).
    • No mandatory filter requirements - any filter combination can be applied.

Step 3: Configure Tier Calculation

Select the tiers based on:

  • Total: Apply tiers across the entire account.
  • Per Linked Account: Apply tiers separately for each linked account.

Tier Value Type:

  • Rate (Default): Apply a fixed cost amount per unit based on the billing currency (e.g., $0.20 per GB-second).
  • Percentage: Apply a percentage markup or discount to the base cost (e.g., 20% markup or -10% discount).

Step 4: Choose Application Method

Apply as:

  • Add to Existing Service: The margin is inserted as a Family Type called "Tier" within the existing service line item
  • Custom Service: Creates a separate custom service line item in the account for better visibility

Step 5: Define Tier Ranges

  1. Click "+ Add Tier" to define your pricing tiers.

  2. For each Usage Tier type, specify:

  • Up to [amount]: The threshold for this tier (e.g., "Up to 4 B" or "Up to 4")
  • Units: (For usage-based tiers only) Select the unit of measurement.
  • Percentage (%) **or Rate: The margin value for this tier

Usage Tiers Type Range

  1. For each Cost Tier type, specify:
  • Up to [amount]: The threshold for this tier (e.g., "Up to $4" or "Up to 4")
  • Percentage (%) **or Rate: The margin value for this tier.

Cost Tiers Type Range

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Important Notes

  • Each tier applies from the previous threshold up to the specified amount.
  • You can add multiple tiers to create graduated pricing structures.

Step 6: Apply Filters

Use the filter panel on the right to specify which services and resources the rule applies to.

❗️

Filters marked with a red warning icon are required based on your tier configuration.

Unit Selection for Byte-Based Quantities

When Quantity Type "Bytes" is selected, a Units dropdown becomes available allowing you to specify the unit of measurement: Binary Units (IEC):

  • B (Byte)
  • KiB (Kibibyte)
  • MiB (Mebibyte)
  • GiB (Gibibyte)
  • TiB (Tebibyte)
  • PiB (Pebibyte)
  • EiB (Exbibyte)
  • ZiB (Zebibyte)
  • YiB (Yobibyte)

Decimal Units (SI):

  • KB (Kilobyte)
  • MB (Megabyte)
  • GB (Gigabyte)
  • TB (Terabyte)
  • PB (Petabyte)
  • EB (Exabyte)
  • ZB (Zettabyte)
  • YB (Yottabyte)
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Note

The unit dropdown is only enabled when "Bytes" is selected as the Quantity Type.

A tooltip indicates: "Choose 'Bytes' as the Quantity Type to select the desired unit".

Rule Frequency

Choose when the rule applies:

  • One Time: Apply the rule for a specific billing period starting from a selected date
  • Recurring: Apply the rule continuously for all future billing periods

Validation Rules

The system enforces the following validations:

  1. Usage Selection: If "Usage" is selected, either Quantity Type or Usage Type must be specified. An info banner states: "In case Usage is being selected, then Quantity type or Usage type must be selected."
  2. Custom Service Application: If applying as a custom service within a selected service, the service field must be populated (applies to both Usage and Cost selections).
  3. Unit Selection: The unit dropdown is only enabled when Quantity Type "Bytes" is selected.
  4. Required Filters: A warning banner at the bottom states "Some filters are required" if mandatory filters are not yet configured.
  5. Service Selection: When Usage Type is marked with a warning icon, the Service filter becomes required.

Updated 5 days ago