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Setting a minimum threshold for billing usage

Setting a minimum threshold for billing usage

We are currently rolling out a new product that is entirely usage based for billing purposes. We would like to avoid sending customers bills under a certain dollar amount.


The ability to set a minimum usage threshold before which an invoice will not be generated would be a useful feature.





Zuora Staff

"Is a "Minimum Commitment" usage charge model (subscriber agrees to spend a minimum amount per billing period that would serve as a floor to the customer's spending) something you would be interested in?"


@Alexis Yes for sure 🙂

Savvy Scholar

Hi @sub_future and @Alexis 


Thank you. I will have a look.

Today we actually solve this using workflows but as we are onboarding more and more business units into our ecosystem - having this as part of Zuora functionality would save us quite some time as we cannot just copy the workflow from one BU to another (can be quite big differences in each configuration). 


But thank you for following up 🙂



Zuora Product Team

@sub_future thanks for commenting that, the extension was what I was going to go suggest next if applicable to @Karina's use case

Valued Scholar

@Karina, we also have a use case to support minimum commitment for usage product.  Hhow are you using workflow to handle the minimum commitment?


@Alexis , does the Minimim Commitment Extension work in when we have Invoice Ajustment enabled in our instance?

Savvy Scholar

@justinw  The workflow generates a bill run with invoices in Draft, exluding Recurring and One Time fees (as this Business Unit sends separate Usage invoice). 

When bill run is generated the workflow identifies those invoices where the invoice amount is less then the threshold amount:


Invoice.Amount < {{Data.Workflow.ThresholdAmount}} AND Invoice.TargetDate = '{{Data.BillRun.TargetDate}}' AND Invoice.InvoiceDate = '{{Data.BillRun.InvoiceDate}}' AND Invoice.Status = 'Draft' AND Account.Batch = '{{Data.BillRun.Batch}}'


....and it iterates on the result, cancelling the invoices where amount is below threshold. 


Not sure if this helps...


Karina 🙂




Valued Scholar

@Karina, thank you for your response.  A few follow up questions that I have.


1. Where is the threshold amount captured?  Is it in the Subscription?

2. Instead of cancelling the invoice, have you thought about creating the a credit memo to offset the invoice amount?
3. What if the threshold amount is less than the invoice amount? How does the invoice with the partial amount get invoiced?



Savvy Scholar

@justinw No worries:


1. Threshold amount is added in the Settings either as default or as a required field.

2. We have not considered to create credit memos as in our case this is transaction based. We will keep the transactions until next bill cycle. Hopefully then the amount is exceeding the threshold. Hence the customer finally gets an invoice with the amount from last billing cycle and this billing cycle summed.

3. I guess nbr 2 answers nbr 3