Set Up Commitment Contracts

Once you have configured the Usage Minimum Commitment, you can set up commitment contracts (both monthly and contract-based) to help users understand their spending commitments.

To set up commitment contracts:

1. Go to Accounts Receivable > Customers.

   
2. Select a Customer for whom you want to add the contract.

   
3. Click the Contract tab.

4. Select the + Add Contract button.

   
5. Enter Contract Details:

   1. Customer: This will be automatically filled and cannot be modified.

   2. Contract Name: Enter a descriptive name for the contract (e.g., "Demo Contract").

   3. Contract Type: Choose one from the following:

      • New Sales

      • Existing

      • Expansion

      • Reactivation

      • Contraction

   4. Start Date: Select the start date for the contract.

   5. Close Date: Select the date of finalizing the deal.

   6. Duration: Choose from the following options:

      • 6 months

      • 1 year

      • 2 years

      • 3 years

      • Open-ended

      • Custom

   7. End Date (Optional): Select the end date for the contract.

6. Click Next Step.

   
7. Click + Add Product.

   
8. Select a product with the revenue type set as Usage.

   
9. Set Commitment Details:

   1. Usage Cycle: The usage cycle defines how often usage is invoiced. Choose between monthly or contract.

      Note:

      • If monthly, the commitment will be split (e.g., $1,000 per month for a $12,000 total).

      • If contract, the total can be consumed at any time within the contract duration.

   2. Minimum Contract Commitment: Minimum applies across all Usage-based products. Enter the total commitment amount for the contract.

10. Click Next Step.

    
11. In the Invoicing section, fill in the following fields:

    1. Invoicing Frequency: Select Monthly, Quarterly, or Yearly for invoicing frequency.

    2. Month and day of invoice: Select the day of the month for invoicing (e.g., 1st, 31st).

    3. Payment Terms: Specify payment terms.

       • Due on Receipt

       • Net 10

       • Net 30

       • Net 60

       • Custom

12. Click Next Step.

    
13. Confirm Revenue Schedule and Click Next Step.

    1. Usage Cycle Contract example:

       
    2. Usage Cycle Monthly example:

       
14. Click Confirm Contract