Welcome to Zuora Product Documentation

Explore our rich library of product information

Scenario 1: Fully prepaid

Example of a fully prepaid annual commitment with recurring, one-time, and usage charges, showing how invoices and credit applications are generated over time.

Step 1

Create a subscription with a 1-year term and Order Date=2026-03-01, with one rate plan that has three charges:

  • Recurring charge: $100/month

  • One-time charge: $200

  • Usage charge: $1/unit

Create a commitment starting on 2026-03-01 with period=Year, amount=1200, prepayment Type=fully prepaid, and prepaid Frequency=Annual.

Step 2

Generate a bill run with target date 2026-03-01. One invoice is generated with five invoice items and invoice date 2026-03-01.

Invoice item

Charge name

Service start date

Service end date

Amount

II1

Annual Commitment - Prepaid Installment

2026-03-01

2027-02-28

1200

II2

Recurring

2026-03-01

2026-03-31

100

II3

Annual Commitment - Credit Application

2026-03-01

2026-03-31

-100

II4

One Time

2026-03-01

2026-03-01

200

II5

Annual Commitment - Credit Application

2026-03-01

2026-03-01

-200

Step 3

Upload March usage of 850 and generate bills with target date 2026-04-01. A second invoice is generated for 2026-04-01.

Invoice item

Charge name

Service start date

Service end date

Amount

II6

Recurring

2026-04-01

2026-04-30

100

II7

Annual Commitment - Credit Application

2026-04-01

2026-04-30

-50

II8

Usage

2026-03-01

2026-03-31

850

II9

Annual Commitment - Credit Application

2026-03-01

2026-03-31

-850