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Using Minimum Commitment

Zuora

Using Minimum Commitment

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The Minimum Commitment app is not available for purchase anymore and is in maintenance mode. The information in this documentation is intended to be used by customers who have purchased the app. 

After installing and configuring the Minimum Commitment app, you can use it in your Zuora tenant as follows:

  1. Identify product to use Minimum Commitment app
  2. Configure Minimum Commitment Charge within the Product Rate Plan
  3. Configure the Minimum Commitment True Up Charge

Identify product to use the Minimum Commitment app

1. In Zuora environment, navigate to Products > Product Catalog in the left-hand navigation section.

2. Select the product catalog you want to use the Minimum Commitment app.

Configure the Minimum Commitment Charge(s) within the Product Rate Plan

1. On the product detail page, select an existing rate plan or create a new rate plan to use the Minimum Commitment app. See Create a rate plan and Edit a Product, Rate Plan, Product Rate Plan Charge for more information. 

2. Edit the product rate plan charge by hovering the mouse over its title, the edit icon will appear on the right. Click the edit icon. 

3. Identify which charge(s) of the rate plan will be included towards the Minimum Commitment app by selecting TRUE in the ‘Include Towards Minimum Commitment Amount’ drop-down menu.

Use-1.png

All charges use False by default.

Configure the Minimum Commitment True Up Charge

1. Identify which charge in the rate plan will be the True Up Charge by selecting TRUE in the ‘True Up Charge’ drop-down menu.

  • All charges default to FALSE
  • There can only be 1 True Up Charge against an invoice

Use-2.png

2. The True Up Charge must complete the "Charge Amount" details.

  • List Price: Select the list price 

  • UOM (Units of Measure)

    • Dollar
    • Each
    • License
    • Minute

Minimum Commitment App Logic

Bill Runs automatically create invoices on a set schedule, and upon completion, a callout to the Minimum Commitment app on Connect is sent. The app will then run against those created invoices and calculate any needed True Up Charges that must be added to the invoices.  

For any invoices that need a True Up Charge, because they do not meet the minimum commitment, the app will cancel the invoice, add usage for the appropriate amount and regenerate the invoice. This process will be shown by the created invoice being canceled and in the customer account under ‘Transactions’. The regenerated invoice with the True Up charge will be displayed. Review of the new (minimum commitment regenerated) invoice, will show one invoice item for the original invoice amount and one invoice item for the True Up Charge.  

Example:

The Bill Run generated an invoice of $75, but the minimum commitment amount is $100.

  • The original invoice (INV...001) of $75 is created by the Bill Run and then canceled by the Minimum Commitment app. The app will then create a new invoice (INV...002) for the minimum amount of $100.

  • Invoice details will show one invoice line item of the original charge of $75 and one line item of the True Up Charge of $25 to reach the minimum commitment amount.

Notes and limitations

  • The app will not execute if an invoice in the bill run does not contain one charge where “IncludeTowardsMinimumCommitmentAmount__c” field set to TRUE and 1 charge that has the “TrueUpCharge__c” field set to TRUE.

  • The app looks to the Subscription object to determine the minimum commitment amount. If this value is blank the service will look to the Account. If both values are blank the service will skip the true-up process on the Invoice.

  • If the total sum of the charges is more than the commitment amount, the app will not load any additional data.

  • The app does not support the case where the subscription customer and the invoice owner are different. 

  • There can only be 1 True Up Charge against an invoice.