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Minimums with overage - RevPro

Hi,

 

How does RevPro handle Overages upon a monthly minimum.

 

  1. a) If the monthly minimum amount is greater than the sum of its associated usage lines, then the revenue recognized must be equal to the minimum amount

 

  1. b) If the monthly minimum amount is less than the sum of its associate usage lines, then the revenue recognized must be equal to the sum of the usage line with the difference spread proportionately across the usage lines

 

Please let us know how RevPro can handle this scenario.

 

Following is an example of scenario b:

 

Contract A is establish over a 12 month period with a minimum and 2 usage line items, and total contract value is $12000. The 2 usage line items are grouped under the minimum product.

 

During Month 1: Contract initiation

 

  1. Minimum Line is set upon booking; $1000 spread ratably over 12 months
  2. Usage Line 1 is set upon invoicing; $0 at inception
  3. Usage Line 2 is set upon invoicing; $0 at inception

 

 

During Month 2: The Usages get recorded and will be invoiced to the customer

 

  1. Usage Line 1 is invoiced for 600
  2. Usage Line 2 is invoice for 600

 

Expected Result: Total Revenue for month 2 must be recognized at $1200;

1)revenue for minimum = 1000

2) revenue for usage line 1 = 100

3) revenue for usage line 2 = 100

 

 

Best Regards,

Shalini

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1 REPLY 1
Tutor

Re: Minimums with overage - RevPro

Hello Zuora Team,

 

Does anyone have any inputs on the below use case. How can this be effectively handled in RevPro?

 

Thank you,

Shalini