Overview
The attached scheme illustrates a multi-tier billing structure with the following key components:
Billing Entity (BE) Classifications:
  • Suppliers (Supplier 1 & Supplier 2): Designated as Billing Entities (BE) - these are the upstream providers who deliver services/products and generate invoices to the reseller
  • Reseller: Acts as both a Customer (C) to the suppliers and a Billing Entity (BE) to the end customer - serving as the intermediary in the billing chain
  • End Customer: Designated as Customer (C) - the final recipient of services who receives consolidated billing from the reseller
Key Process Flow
  • Upstream Billing: Both Supplier 1 and Supplier 2 independently bill the Reseller for their respective services or products
  • Consolidation: The Reseller aggregates costs from multiple suppliers and applies their margin/markup
  • Downstream Billing: The Reseller issues a single, consolidated invoice to the end customer
Pricing Structure Example
To illustrate how pricing flows through this multi-tier structure:
Supplier Pricing:
  • Product X from Supplier 1: €100 per unit
  • Product X from Supplier 2: €85 per unit (same product, different supplier pricing)
  • Service Y from Supplier 1: €50 per month
  • Service Z from Supplier 22: €75 per month
Reseller Pricing to Customer:
  • Product X: €120 per unit (reseller adds 20-40% margin depending on supplier cost)
  • Service Y: €65 per month (30% markup)
  • Service Z: €95 per month (27% markup)
  • Bundle discount: -10% when purchasing multiple services
Created by Lago admin
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