Commit Burndown

overview nue now supports a brand new revenue model, commit burndown commit burndown this is a flexible revenue model that allows customers to pre commit ( create commits ) to spending a specific dollar amount or credit volume for a future period (e g , annual commitment) it enables predictable revenue with usage based flexibility, making it ideal for enterprise grade customers with varying consumption patterns at the end of a committed period committed period , any unused under‑spend under‑spend is billed in arrears, and overspend can be billed based on standard pricing by default, commits commits are invoiced in arrears and are not counted as arr until consumed or billed key differentiators the commit burndown commit burndown revenue model provides commercial flexibility with financial control for ai/data and usage‑heavy saas, replacing spreadsheet workflows with native objects for periodized commitments, automated reconciliation (under/over‑spend), and pricing that adapts to the size of the commitment all inside one system from quote to billing sales/gtm sales/gtm quote the commit and the consumer services together, with commit‑aware pricing that auto‑tiers rates/discounts as the commitment changes use commit incentives to drive expansion during high‑consumption periods; manage commits and drawdowns without leaving nue revops efficiency & governance revops efficiency & governance native constructs for committed periods (monthly/quarterly/annual), ramping, renewal rollovers, and guarded mid‑term reductions reduce manual errors change orders (update term, adjust price, renew) provision/adjust credits and recalculate eligible discounts automatically finance integrity & auditability finance integrity & auditability under‑spend is billed at period end consumer invoices still post normally while drawdowns from committed spend are recorded as credit out flows, with cancellation credit‑backs and no cash‑out of paid commits creating a clean audit trail across invoices, credits, and flows customer value customer value predictable spend with better usage rates & discounts for larger commitments, clear visibility into burn (inflows on activation, outflows from usage/invoices), and optional rollover that preserves unused value across terms after under‑spend billing leading to fewer surprises at true‑up time executive/metrics clarity executive/metrics clarity commit tracking is separated from recognized revenue for commits (products of commit burndown type) total price rolls into total committed amount delta committed arr/cmrr metrics are applicable instead of arr/cmrr until consumed or billed pipeline reflects both total amount and total committed amount (on a primary quote) at the opportunity level new terminology currently commits are of cash type only commits (committed amount) commits (committed amount) total dollar amount a customer agrees to spend over defined committed periods; not invoiced upfront and not counted as arr until consumed/billed committed period committed period interval over which commit drawdown and reconciliation occur (monthly, quarterly, semi‑annual, annual, or aligned with subscription term) committed cash pool committed cash pool a cash‑type credit pool that tracks committed inflows (on activation) and outflows (from rated usage, recurring invoices, or other drawdowns) for end‑of‑period reconciliation under‑spend under‑spend unused committed amount at period end is billed in arrears by default as part of reconciliation over‑spend over‑spend spend above the commitment; can be billed with incentive discounts based on thresholds (e g , 2× → 10%, 3× → 20%) total committed amount (header) total committed amount (header) quote/order price summary field aggregating committed amounts commit burndown commit burndown lines are excluded from total price but roll into this field for commit tracking and pricing dependencies total committed amount as a quantity tier attribute total committed amount as a quantity tier attribute a standard quantity tier attribute (qta) you can use in price/discount tags so eligible products automatically price/discount based on the aggregated commitment across all commit burndown commit burndown lines how it works set up a cash pool for committed spend nue provides the ability to set up docid\ xvnmn apkl0hmhplaiqhr this allows system admins to set up a separate cash pool holding committed spend navigate to credits > add credit pool > create a cash‑type credit pool and mark as is committed credit pool is committed credit pool this pool serves as the central point into which commits (committed spend) are provisioned on order activation recurring subscriptions & usage draws or consumes from this same committed pool if configured as such on the product the committed cash pool also supports use cases such as end‑of‑period under‑spend billing commit‑aware consumption rating create commits bundles & products create commits burndown products with flexible configurations which help determine committed period committed amount per committed period/term cash pool holding activated commits select the commit burndown revenue model optionally enable committed period ramping (e g , quarterly) so a 12‑month term generates four ramp lines in the case below because the uom of the product is defined as per quarter it signifies customer would be committing to spend $250k per quarter, totalling to a $1mn of total committed spend these amounts can be changed in line for each quarter (if ramping enabled) or entire subscription term within the quote line editor set recurring & usage products to draw from committed cash pool system administrator can set certain products or bundles to consumer committed amount from a specific committed cash pool see the next section to understand how commits consumption can be tracked quote commits and consumer services add the commit burndown commit burndown product (ramp lines auto‑generate) if ramping is enabled then sales rep can increase or decrease committed amount over the multiple committed periods based on customer's intended spend over the subscription term add consumer products (usage/recurring) that draw from the same cash pool below is an example of a quote including a quarterly ramped commits product & a recurring subscription which draws from the same committed cash pool to prevent double counting of arr & total contract value, recurring products which draw from a committed cash pool are not counted towards the total price on the header as visible in the image above read more below on the new commit burndown metrics commits metrics field field object object definition definition delta committed arr quotelineitem/orderproduct a commits‑specific metric that mirrors the calculation of standard delta arr but tracks “committed” revenue separately from recognized arr commit burndown lines have delta arr = $0 and populate delta committed arr instead delta committed cmrr quotelineitem/orderproduct a commits‑specific metric that mirrors the calculation of standard delta cmrr, providing the “committed” monthly recurring run‑rate view commit burndown lines have delta cmrr = $0 and populate delta committed cmrr instead; non‑commits lines have delta committed arr/cmrr = $0 total committed amount quote/order a new field on the quote/order object which is an aggregate of total amount for all commit burndown product lines it represents the total committed spend on the given quote/order it also serves as the quantity tier attribute driving commit aware pricing total amount opportunity this existing field on the opportunity object represents a sum of the total piepline value on the primary quote = total amount & total committed amount fields total committed total committed amount amount is a new field added to the quote & order objects follow the steps to add it to the field sets to display on your quote/order builder navigate to setup > object manager > quote/order click on field sets > quote price summaries drag & add the total committed amount field to the price summary view credit flows on lifecycle manager inflow & outflow of commits provisioned & consumed can be tracked on the credits tab on the lifecycle manager as seen below if credits tab is not visible by default, follow the steps below navigate to customer lifecycle tabs on nue to configure the credits tab enable commit‑aware pricing reps can can configure & apply price/discount tags to recurring & usage products, that use total committed amount as a quantity tier attribute in the image below, there's a discount tag configured based on total committed amount since the total committed amount on the quote is $1mn the first tier is aplicable & the corresponding discounts are applied if recurring products using such a tag are quoted on the same quote as the commits then the tag auto‑tiers as the committed totals change in the quote in our first drop, tiers are based on aggregated totals across commits lines in the quote future versions of commit burndown will support committed cash pool‑specific aggregation of commits user scenarios commit annual spend and consume against usage and subscriptions consider a customer who has committed to an annual spending of $12,000 on your services, and their usage and recurring subscriptions are billed monthly at year‑end, any unused committed amount is invoiced to satisfy the annual commitment this commitment allows for predictable budgeting and allocation, enhancing their experience with your offerings follow the steps below to manage the process effectively and ensure that their spending aligns with the committed amount create a commit burndown product in product setup, set the revenue model to commits burndown, and select the committed cash credit pool associate the service products with the same committed pool set the same committed cash pool for your usage product and recurring service so their usage and invoices will draw down from the committed credits create a quote with the commits & services add the commit burn down product with a total committed amount of $12,000 for a 1 year term, and the associated usage and recurring products finalize quote & activate the order to issue commits upon order activation, the commit burn down subscription provisions the commits into the associated pool rate and bill the usage product upload raw usage for the usage product once the raw usage gets rated, it will consume the committed credits from the pool at the end of each usage term, the usage subscription will be billed accordingly bill the recurring subscription run the billing schedule and generate an invoice for the recurring subscription once the invoice gets activated, it will consume the committed credits from the pool as well bill the unused credits at the end of the committed period, the customer still needs to pay for the remaining committed amount, so there will be an invoice for the unused credits generated accordingly rollover unused credits to next committed period some businesses allow customers to carry over unused credits (committed amount) to the next committed period for example, a customer signs a 12 month contract with commits of $500 per quarter and enables rollover of any unused credits (committed amount) at the end of each quarter or after each quarter is billed, any unused credits will be rolled over to the next quarter to support this case, follow these steps to enable credit rollover for your commit burn down subscription enable rollover unused credits when creating the committed credit burn down product, enable rollover unused credits generate a subscription with quarterly commits create a subscription with quarterly committed periods, and credit in flow lines will be generated for each quarter accordingly with the respective start & end dates consume credits from the current committed period let's say a subscription's invoice partially consumes committed amount from the current committed period bill the current committed period once the current committed period ends, any unused credits will be rolled over to the next period if the current period gets billed before it ends, any unused credits will be charged and rolled over however, the expiration date of the rolled over credits will match the end date of the current period once the current period ends, any remaining balance will still be transferred to the next period the rolled over credits can still be applied to the newly generated invoices