Enable Overlapping Commitments

Use this setting to control whether overlapping commitments are supported for the tenant in nested and waterfall modes. 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.

• Use overlapping commitments in waterfall mode.

When this setting is disabled, overlapping commitments are not supported.

Prorate usage charge contribution

Use this billing rule to control how usage charge amounts contribute to 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 usage charge contribution behavior across the tenant.

The following options are provided:

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

• By Day: Zuora uses a prorated usage charge amount based on the number of days when the charge billing period does not fully align 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 using the full billing-period amount.

Prorate recurring charge contribution

Use this billing rule to control how recurring charge amounts contribute to the commitment balance.

The following options are provided:

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

• By Day: Zuora uses time-based proration for the recurring charge contribution.

When a recurring charge service period spans multiple commitment periods, By Day splits the contribution across the applicable commitment periods based on the number of days. One-time charges are not affected by this billing rule.

Charge types and proration options: