Overlapping commitments are commitments that share applicable charges during overlapping commitment periods.

There are two overlapping-commitment models:

• Waterfall commitment: A model in which applicable charges contribute to overlapping commitments in priority order sequentially.

• Nested commitment: A parent-child structure in which child commitments are associated with a parent commitment. Applicable charges contribute to both parent and child commitments at the same time.

When Zuora Commitments is enabled for your tenant, you can create overlapping commitments. By default, Zuora processes overlapping commitments in waterfall mode. When you define an explicit parent-child relationship, Zuora uses nested commitment behavior.