Use cases for Commitments
Examples of how to model multi-product, multi-year, and parent-child account commitments in Zuora.
Multi-product contracts
Multi-product contracts with a single committed spend:
A customer subscribes to a recurring platform fee, a usage-based token pack, and a one-time installation fee. Their contract specifies a combined minimum spend of $50,000/quarter until the contract term ends.
Multi-year contracts
Multi-year ramp contracts with escalating amounts:
A customer commits to $3,000/month in year one and $15,000/quarter in year two and three under the same contract. These different frequencies and amounts need to be captured without creating separate commitments.
Child account consumption
Child accounts' consumption count into the parent account's spend:
An enterprise customer centralizes commitment ownership at the parent account, but each subsidiary independently orders and consumes services. The parent is held to a combined minimum spend, but subsidiary charges need to flow up and contribute.