Consuming Commitments

Overview

Commitments are an invoicing concept in Uboss which can be found in the billing section. They allow a customer to commit to consuming a quantity of licenses for a set period of time in exchange for improved pricing. The commitment is independent of the consumption of licenses at the user level.

Commitments are only applicable for licenses consumed by a user at present.

Commitments can be consumed at the following levels in Uboss:

• Distributor
• Reseller
• Business
• Site

Invoice Logic

If a commitment is purchased for a license quantity of 1 you will be entitled to 100% usage of that license within a billing month at the commitment price.

An example below will highlight how commitments work.

• You currently have 10 users.
• All 10 users are using the standard package.
• The normal price of the standard package is £1.00 per month.

Without Commitments

• For one billing month your total charges will be £10.00 (10 x £1.00).

With Commitments

• Your supplier has made a commitment option available. The commitment option states that if you commit to a license for 1 year you will receive a monthly price of £0.80 for the next 1 year.
• You know that you will have a minimum of 6 users for the next year so decide to commit to 6 standard package licenses for 1 year.
• Your new monthly cost would be as follows:

6 x £0.80 = £4.80 (commitment cost)
4 x £1.00 = £4.00 (normal rate cost)
Total = £8.80

By consuming a commitment you have made a 12% saving in the month.

It is worth noting that commitments are charged regardless of usage. This means if you consume less than your commitments you will still be charged for your commitments.