> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dualentry.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Usage Pricing Models: Reference

> Definitions of DualEntry's flat, graduated, volume, and block usage pricing models, the three tier scope options, and worked pricing examples.

DualEntry prices usage-based performance obligations with a constant flat rate or one of three tiered models, plus a tier scope setting that controls how quantity accumulates when DualEntry picks a rate. This page defines each option and works through examples. For the steps to configure pricing and record usage, see [Usage Pricing: Flat and Tiered Models](./usage-tiered-pricing).

## Pricing models

* **Flat rate**: every unit bills at a constant rate, regardless of volume.
* **Tiered usage (graduated)**: units fill each tier in order, and each band keeps its own rate. For example, the first 5 GB at \$1/GB, the next 5 GB at \$5/GB.
* **Volume (all units)**: the total quantity in the scope determines a single rate, and that rate applies to every unit.
* **Volume / block tiers**: pricing steps by block size, for example every 50 seats at a fixed block price. Later block sizes cannot be smaller than the previous tier's **Up To** value.

Tier schedules live on the performance obligation, not on the item catalog. Form preview Total Contract Value for usage obligations still uses `rate × quantity × periods` as an estimate; actual billing and recognition follow the tier schedule when you record usage.

## Tier scope options

* **Per usage**: each usage row is priced on its own quantity, with no cumulative volume carried from earlier rows. Use this when every upload or meter event is independent.
* **Per billing period**: quantity accumulates within the billing period, then resets at the next period. Use this for monthly or periodic true-ups where the tier table applies to that period's total consumption.
* **Per obligation**: quantity accumulates across the life of the obligation. Use this when tiers apply to lifetime volume on the commitment, not to a single invoice cycle.

Editing, adding, or archiving a usage row can leave later rows in the same tier scope with stale amounts, because graduated and block pricing depend on prior cumulative quantity in the scope window. See [Usage Pricing: Flat and Tiered Models](./usage-tiered-pricing#record-and-reconcile-usage) for the reconcile flow that corrects this.

## Worked examples

The following examples show how the same quantity can produce different billed amounts under each model.

**Graduated (tiered usage), per billing period:** A cloud storage obligation prices the first 5 GB at \$1/GB and the next 5 GB at \$5/GB. In a month with 8 GB of usage, DualEntry bills \$5 for the first band and \$15 for the remaining 3 GB, for \$20 total.

**Volume (all units), per billing period:** Seat pricing drops from \$10 to \$8 once monthly seats pass 100. At 120 seats, every seat bills at \$8, for \$960. Unlike graduated pricing, crossing the threshold reprices the entire quantity at the new rate, not only the units above 100.

**Volume / block tiers:** Every block of 50 users costs \$150. At 120 users, DualEntry prices three blocks (150 capacity) at \$450 when the commercial terms bill full blocks.

**Flat rate (control case):** The same 120 seats at a flat \$9 rate bill \$1,080 with no tier table involved. Compare that figure to the volume and block examples above when you validate that an obligation is still flat versus accidentally left on a tier schedule.

## Next steps

* Configure a pricing model and tier scope in [Usage Pricing: Flat and Tiered Models](./usage-tiered-pricing).
* Upload usage across many contracts with [Import Multi-Contract Usage](./import-multi-contract-usage).
* Model year-over-year price steps with [Ramp Deals: Multi-Year Pricing](./multi-year-ramp-deals).