A smartphone product is currently sold as a one-time upfront payment. In order for it to be sold with equal monthly installment payments for 12…

To sell a product with a fixed number of recurring payments, a term-based selling model is required. The scenario specifies "equal monthly installment payments for 12 months," which defines a fixed duration (12 months) and a monthly billing cycle. The "Term Monthly" product selling model is designed for this exact use case. It establishes a subscription with a defined start and end date (the term) and sets the billing frequency to monthly, effectively creating an installment plan for the product's total price.

A. Assign a product selling model option of Term Annual to the product.

This model defines a fixed term but with an annual billing frequency, which does not meet the monthly installment requirement.

C. Assign a product selling model option of Evergreen Monthly to the product.

This model is for subscriptions that renew indefinitely until canceled, contradicting the specified fixed term of 12 months.

1. Salesforce Help Documentation, "Product Selling Models in Salesforce Billing": This document defines the core selling models. It states, "Termed: The subscription has a specific start and end date. You can set the subscription term in months or days." This aligns with the 12-month requirement. The model is combined with a billing frequency (e.g., Monthly) to define the payment schedule.

2. Salesforce Help Documentation, "Product Selling Model Fields": This page details the fields that constitute a Product Selling Model. The Type field is set to "Term" for fixed-duration subscriptions, and the Term Frequency field is set to "Monthly" to establish the monthly payment cycle, creating the "Term Monthly" model.

3. Salesforce Help Documentation, "Set Up a Product for Billing": This guide outlines the setup process. In Step 3, it instructs users to "Create product selling models to define how you plan on selling and billing for the product." It clarifies that a product can be sold as a one-time, evergreen, or termed subscription, reinforcing that "Term" is the correct type for a fixed-duration plan like a 12-month installment.