Commitment Usage Drawdown

Use this billing rule to control how usage charge amounts are applied to draw down the commitment balance. This billing rule applies to both subscription usage charges and dynamic usage charges. This setting is a tenant-level billing rule. It applies to commitment usage drawdown behavior across the tenant.

The following options are provided:

• By Billing Period (default): Zuora uses the usage charge's full billing-period amount to draw down the commitment balance.

• By Day: Zuora uses a prorated usage charge amount based on the number of days when the charge billing period is not fully aligned with the commitment period.

By Day uses daily usage amounts for charge models that support unbilled usage. For charge models that do not support unbilled usage, Zuora prorates the billed usage amount based on the actual contribution days in the billing period instead of defaulting to billing-period-based drawdown.

Enable overlapping commitments

Use this setting to control whether overlapping commitments in nested mode are supported for the tenant. When this setting is enabled, you can:

• Associate child commitments with parent commitments.

• Use nested hierarchies for shared-spend scenarios.

• Roll up child commitment true-up amounts to the parent commitment.

When this setting is disabled, nested parent-child commitment relationships are not supported.