Minimum Commit

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Before You Start

What is a Minimum Commit?

A minimum commit is created for a contract where the number of units, per product, are fixed for the period selected and it is the minimum number of units that can be billed for the specific product.

This allows you to set up a specific minimum quantity to be automatically billed each month for a specific period. The minimum commit quantity can then be compared to actual usage [collected] (for the same period) to determine if the client made use of more than this minimum committed quantity (to bill for over-usage - the additional quantity) or made use of less than the minimum committed quantity (to bill for the minimum committed quantity if under-usage occured)

The system will automatically bill for these fixed quantities for as long as the minimum commit is active. Actual usage source billing data - relevant to the Contract’s minimum commit product – will be compared to determine if under-usage (less than the fixed minimum commit quantity) occurred.

Varibill does not limit the number of Minimum Commits created for each product and contract combination.

How is Actual Usage Compared with the Minimum Commit?

Actual usage is compared with Minimum Commit if the Product Code matches and the billing relates to the same contract.

Minimum Commit Attributes

Contract

Select the contract to which this minimum commit will apply. Only contracts that have not expired are displayed. You can add a contract by selecting the button next to the field.

Product Name

Select the product to which this service applies. If the product is not available in the drop down, first ensure you've selected the correct contract and that the product master of the contract and the product master of the product are the same. If the product does not exist, you can create it by selecting the button next to the field.

Description

Minimum Commit descriptions can be added for internal use or to be displayed to the customer on the invoice.

Quantity

Capture the amount of units you wish to bill for every month.

Start Date

The minimum commit will be effective from this date and line items will be created from these dates.

End Date

The minimum commit will be effective up to this date and line items will be created up to these dates.

Code

A system generated code is allocated to each contract service created.

Next Steps

  • Billing Validation
  • Billing Data Maintenance