Billing for Usage and Commit Plus Overage Charges
The Charge Commit On Usage line-level preference offers a flexible way to bill commit plus overage (C+O) amounts for usage services and commit plus overage services. Set this preference when you don't want to charge the entire commitment quantity or the full minimum amount upfront on the first usage record.
To set this preference, on the line, in the Charge Commit On Usage column, click to check the box.
Commit Plus Overage Capabilities
With the Commit Plus Overage subscription model, you can manage commitment credits across multiple usage services, giving you greater flexibility in how SuiteBilling handles commitments and overages. Commitment credits may be shared among different usage lines, and you can apply different overage rates to each usage line. For example, rates can be tailored by service type or consultant tier.
This model also works for subscriptions grouped by customer, currency, and subsidiary, offering support for more complex billing scenarios.
How It Works
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Commitment amounts are billed from the C+O line, and commitments reset at the end of each pricing period.
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Commitment credits can be allocated across multiple usage services, which allows for shared commitments across different lines.
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Overage charges are accurately billed at the individual usage line level, according to each service’s price plan.
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Overage price plan and frequency fields do not apply when usage is recorded against a usage service tied to the commitment plus overage line.
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Breakage and overage revenue are tracked against the C+O line.
Usage Capabilities
For usage services, the Charge Commit On Usage line-level preference lets you control when the system bills the minimum amount from the price plan header:
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Check the Charge Commit On Usage box to have the unused portion of the minimum amount billed at the end of the pricing period.
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If this preference is not set, the full minimum amount is charged on the first usage transaction.
At least one usage is required for the system to bill the minimum amount for a usage line.
For commit plus overage services:
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Checking the Charge Commit On Usage box charges the commitment quantity at the end of the pricing period when the billing mode is in arrears.
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If the billing mode is not in arrears, the system invoices usage up to the commitment quantity according to the billing account invoice frequency.
Example 1:
On the price plan header, you set a minimum $1000 USD on a usage service, priced annually and billed monthly. On the subscription line, you check the box in the Charge Commit On Usage column. At the end of the year, a total usage of $600 has been billed. You can now bill for the unused $400 to meet the annual minimum.
Example 2:
Your company offers to charge commitment credits at a single discounted rate to be shared among your consulting service usage lines. You set ta total annual commitment of 100 hours to be shared across both tiers. Between the two usage lines you use up 110 hours. The remaining 10 hours will use the individual usage rates to charge the overage quantity.