# Charges Charges are basically the line items that will appear on quotes, invoices and subscriptions. A price list can have any number of charges, one-time, recurring and usage-based. And some of them can even be optional and act as "micro add-ons".

### Name This is the name of the charge as it will appear on quotes, invoices and on the subscription. If you have multiple products with plans, you might want to choose prefixing the charge name with the product name. This setting is controlled at the product level. ### Specific invoice line text By default, the invoice line item will be the product name followed by the charge name like this: Starter - Users If you want to override this format, enter a specific invoice line text, for example: Starter users You will see the same layout in the quote builder, on quotes and invoices. ### Price decimals Depending on the unit, different number of decimals may make sense. For example, users are usually counted in the major currency unit, e.g. $10 or $100 so there you don't need decimals. But you are selling an extremely low priced unit like text messages, you may want to use 4 to 6 decimals. {% hint style="info" %} When charges with different number of decimals are shown on the same quote, Bunny will use the largest number of decimals for all line items. {% endhint %} ### Accounting code If you wish to split out different types of revenue on individual lines in [revenue recognition](/guide/tour/accounting/revenue-recognition.md), you can use the accounting code. For example, you may have one code for implementation and another for subscriptions. Or you can even different line items for different plans. ### Tax code If you are using Bunny's integration with Avalara, make sure you specify the correct tax codes for every single charge. You can use Avalara's [search function](https://taxcode.avatax.avalara.com/search) to look up the correct tax code. ### Charge type There are three different charge types:

Charge type	Invoice when
One-time	Immediately when the invoice is generated.
Recurring	In advance, at the beginning of each period.
Usage-based	In arrears, at the end of each period.

### Pricing model There are three different pricing models for a charge and which ones are applicable depends on the charge type.

One-time	Recurring	Usage-based
Flat price	Flat price	Flat price
	Tiered *)	Tiered *)
	Volume *)	Volume *)
	Bands *)	Bands *)

{% hint style="info" %} \*) these pricing models also require the charge to have a unit for the quantity {% endhint %} Flat price means that the price is just a number with no quantity, but tiered and volume require a bit more explanation. Consider the following price tiers:

Tier	Price	Sample quantity	Tiered price	Volume price
0-10	$10	5	5 * $10 = $50	510 = $50*
11-20	$8	15	10$10+5$8 = $140	15$8 = $120*
21-	$6	25	10$10+10$8+5$6 = $210*	25$6 = $150*

With a tiered pricing model prices, each individual tier is priced separately whereas volume pricing model uses the highest tier reached for the entire quantity. When should you use tiered vs volume? Generally, it makes more sense to use volume for recurring charges and tiered for usage-based charges. The reason is that quantities that are contractually committed could result in a lower price if the customer crosses a tier that reprices the entire quantity. That is less of a problem with metered services where each new period starts anew with zero. ### Price bands Price bands differ from tiered and volume pricing in that instead of pricing per unit, the quantity indexes into a tier and results in a fixed price. Example: | Tier | Price | Example | | ------- | ----- | --------------- | | 1-99 | $20 | 5 -> **$20** | | 100-499 | $75 | 101 -> **$75** | | 500+ | $300 | 500 -> **$300** | ## Free plans If you want to create a product that accounts can subscribe to for free, simple create a recurring charge with a flat price of zero. It's important that the charge is recurring, because it that will create a subscription when the quote is applied on the account. You can also use the [Product Quickstart](/guide/tour/product-catalog/product-quick-start.md) to do this. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.bunny.com/guide/tour/product-catalog/charges.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.