Welcome to Zuora Product Documentation

Explore our rich library of product information

Create and manage Minimum Commitment subscriptions

Create and manage Minimum Commitment subscriptions by configuring Commitment True-up and Credit Commitment charges, uploading and verifying usage records, and generating invoices based on customers' committed and actual usage.

Before creating a Minimum Commitment subscription, review the Minimum Commitment concepts to understand how Commitment True-up charges and Credit Commitment charges work together.

To create a Minimum Commitment rate plan, configure:

  • one recurring Commitment True-up charge

  • one or more Drawdown or Credit Commitment usage charges

  1. To create a Commitment True-up charge:
    1. Create a recurring charge.
    2. Set the following fields:

      Field

      Value

      Charge Function

      Commitment True-up

      Commitment Type

      Currency

      Validity Period

      Defines the commitment period

      Billing Day

      Do not set to Default to Customer Account or a specific day in a month or week

    3. Save the changes.
  2. To create a Credit Commitment charge:
    1. Create a usage charge.
    2. Configure the following fields:

      Field

      Value

      Credit Commitment

      Selected

      Commitment Type

      Currency

      Billing Day

      Do not set to Default to Customer Account or a specific day in a month or week

    3. Save the changes.
  3. <Optional> Configure a drawdown charge. If a usage charge must function as both a drawdown charge and a credit commitment charge:
    1. Select both: Credit Commitment and Drawdown
    2. Save the changes. The prepaid balance is consumed first during billing.
  4. Upload usage records. To track customer usage for Minimum Commitment subscriptions:
    1. Upload usage records to the corresponding Credit Commitment usage charges.
    2. Verify uploaded usage records using Unbilled Usage before billing occurs.
    3. For more information, see Import Usage Data and Unbilled Usage.
  5. Generate invoices. At the end of a commitment period, Zuora compares the total usage charges and committed amount. If the customer didn't spend the committed amount, a true-up invoice item would be generated to collect the difference between actual usage and the committed amount.If the customer spent more than the committed amount, Zuora would generate invoices that collect the actual amount.If you are not familiar with billing at Zuora, see Bill your customers for more information about how to bill and generate invoices.
  6. <Optional> Top up commitment subscriptions. You can increase the minimum commitment by adding an additional committed amount. This can be done by adding new commitment charges to the relevant rate plans. Both one-time and recurring charges can be added as commitment increases.
  7. <Optional> Cancel minimum commitment subscriptions. When canceling a minimum commitment subscription, if the validity period is equal to the subscription term, Zuora will check and generate the true-up amount based on the consumed usage. If the validity period is not the same as the subscription term, canceling is not allowed.