Help Center/ KooGallery/ Seller Guide/ Settlement Management/ Settlement Rules
Updated on 2024-11-22 GMT+08:00
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Settlement Rules

Bill Run Conditions

  1. You have completed business information certification. If the information is incomplete or inaccurate, Huawei Cloud cannot generate bills for settlement.
  2. The payment status of the transaction is Completed.

    When a customer pays an order using credit balances, the payment status will change to Completed only when the customer pays off all credit balances used in the billing cycle when the order was generated.

  3. The service supervision status of the order is N/A or Completed.
  4. The order has taken effect.

Checking Whether Bill Run Conditions Are Met

1. Check the customer payment and service supervision status.

In the navigation pane of the Seller Console, choose Transaction Management > Transaction Details to check the payment status and service supervision status.

2. Check the order effective time.

In the navigation pane of the Seller Console, choose Transaction Management > Transaction Details and click the down arrow on the left of the target order to view the effective time.

Settlement Cycle

  • Frequency: On the seventh day of each month, the system generates bills for the most recent calendar month for settlement.
  • Settlement scope: orders or transactions that are generated and effective within the most recent calendar month, and orders that have been settled partially or have never been settled in the previous months. The billing cycle of a renewal order is determined by the effective time of the order.
  • Example: On February 7, 2019, bills for January 2019 were generated, including orders and transactions from January 1, 2019 to January 31, 2019. The billing cycle ID is 201901. The settlement amount is subject to the actual order and transaction data.
    1. Bills for licenses, SaaS products that involve service supervision, and professional services are generated based on the service flow status. If the service flow of a transaction is completed, the bill for the transaction will be automatically generated in the next billing cycle. Example: For an order that is successfully paid on February 3, 2020, if the service flow of the transaction is completed on March 15, 2020, the transaction is settled in the bill whose ID is 202003.
    2. A bill is not generated for an unpaid order of a postpaid customer.
    3. A bill is generated for a renewal order in the next month when the order actually takes effect. For example, if an order is placed on January 31 but takes effect from February 1, the bill of this order will be generated in March.

Settlement Method

One-time, pay-per-use, and yearly/monthly orders are settled at one go.

  • Pay-per-use packages are settled at one go and refund demands are not allowed.
  • The transaction amount and amount to be settled must be provided in the bill details for orders billed on a yearly/monthly basis.

Settlement Amount

Huawei Cloud KooGallery offers two transaction models, each tailored to common products and joint operations products.

  • Common product

    A product released by a seller in KooGallery must be priced in USD dollars. When a Huawei Cloud customer purchases a product released by a seller, Huawei issues an invoice containing a value-added tax (VAT) and other similar taxes based on local tax requirements. Huawei calculates the settlement amount for the seller based on the selling price of the product (excluding the VAT). Huawei Cloud reserves the right to adjust the platform fee proportion based on service development requirements. The current formula for calculating the settlement amount is as follows:

    Settlement amount = ∑ni=1 (Selling price of product N (excluding VAT) – Customer WHT1 – Customer DST1) x (1 – Proportion of platform fees) – Seller taxes (such as WHT2 and DST2)

    Example:

    Selling price of a product (excluding VAT) = $1,000 USD

    Tax imposed on the product supplied to the customer: Customer WHT1 = $150 USD; Customer DST1 = $50 USD

    Tax involved in Huawei's settlement to the seller: WHT2 = $100 USD; DST2 which imposed on the seller however should be filed and paid by Huawei = $20 USD

    Revenue sharing ratio of Huawei (Proportion of platform fees) = 15%

    Settlement amount = (1,000 – 150 – 50) x (1 – 15%) – 100 – 20 = $560 USD

    WHT stands for withholding tax.

    DST stands for Digital Service Tax.

    Platform Fee Proportion Baseline lists the default platform fee proportions of KooGallery. The platform fee proportion of a product is subject to that configured during product release. For details about how to view the platform fee proportion, see How Do I View the Sharing Ratio of a Product?

  • Joint operations product

    The settlement rules vary according to the revenue sharing mode.

    • Revenue sharing based on the transaction price

      Settlement amount (including tax) = ∑ni=1 (Transaction price of joint operations product N – Customer WHT1 – Customer DST1) x Seller's revenue sharing ratio – Seller taxes (such as WHT2 and DST2)

    • Revenue sharing based on the discounted base price

      Settlement amount (including tax) = ∑ni=1 (List price of joint operations product N x Base price discount – Customer WHT1 – Customer DST1) x Seller's revenue sharing ratio – Seller taxes (such as WHT2 and DST2)

    • Revenue sharing based on the fixed base price

      Settlement amount (including tax) = ∑ni=1 (Fixed base price of joint operations product N – Customer WHT1 – Customer DST1) x Seller's revenue sharing ratio – Seller taxes (such as WHT2 and DST2)

Invoice Issuance Regulations

A seller shall issue VAT invoices to Huawei Cloud based on the monthly settlement amount and send them to the specified address within a month of receiving the invoice request. The invoiced tax items and tax rate are subject to the local tax laws of the seller. If an invoice is incorrect, the seller shall reissue it. For details, see Issuing Invoices to Huawei Cloud.

Parent topic: Settlement Management