Quote V3: Coupons & Discounting #817
Description
Context and Overview
This document outlines the requirements for implementing Coupon and Discount functionality directly within the Quote creation and acceptance workflow (Quotes V3).
Currently, Meteroid manages Coupons and Discounts at subscription level and they are displayed at the final invoice level. The goal of this V3 is to move this capability upstream, allowing Sales Account Managers to apply and lock in discounts during the Quote process.
Scope
This V3 feature covers the ability to apply discounts and coupons to line items within a Quote.
In-Scope Models
Discounts and Coupons must be applicable to the following pricing models on the Quote:
- Subscription Models
- Slot-based Models
Out-of-Scope Models
Discounts and Coupons must not be applicable to the following pricing models in this V3 release, as they involve complex usage tracking and proration:
- Usage-based (Pay-as-you-go)
- Capacity Commitment models
Implementation Details
Quote Workflow & Coupon Management
Coupons in Meteroid are managed and defined in Product Catalog > Coupons. The Account Manager workflow must support two paths for applying a coupon or discount when creating a Quote.
- Option 1: Select Existing Coupon: Account Managers must have a searchable interface on the Quote creation screen to select a pre-created Coupon from the Product Catalog.
- Option 2: Create New Coupon: Account Managers must have a direct action (e.g., a link or button) to redirect to the 'Create Coupon' page in the Product Catalog. Upon creation and saving, the newly created coupon should be automatically applied or selectable on the current Quote.
Application Logic (Component Level)
Discounts must be applied specifically to the price of the eligible components, not the final total.
- Line Item Application: The chosen Coupon/Discount must be applied to the rate of the individual eligible product/pricing component (line item) on the Quote.
- Display: The Quote document must clearly show: The original (undiscounted) rate, The applied discount/coupon percentage or fixed amount, The final discounted rate (€18 in the example below), The final total cost (sum of all the lines).
Financial Persistence and Billing Engine Impact
The discount applied on the Quote must persist throughout the duration of the billing agreement.
- Full Billing Period Application: The discounted rate applied to the Quote must be the rate charged to the end user for the full duration of the billing period. This discount is not a one-time offer.
Example: If the rate is €20 and the discount is 10%, the discounted rate of €18 must be displayed on the Quote and will subsequently be the rate invoiced for the entire recurring billing cycle (e.g., monthly, quarterly, or annual).