> ## 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: Flat and Tiered Models

> Configure usage-based performance obligations with flat, graduated, volume, or block tier pricing, then reconcile amounts when usage changes.

Usage-based performance obligations price consumption as you record it. This page covers configuring a pricing model on an obligation and recording and reconciling usage. For definitions of each pricing model and tier scope option, and worked examples, see [Usage Pricing Models: Reference](./usage-pricing-models-reference).

## Prerequisites

Before you configure usage pricing, confirm the following:

* Revenue recognition is enabled for your organization.
* The item on the obligation uses the **Usage** recognition strategy.
* You know the commercial tier schedule (thresholds, rates, and whether pricing is per usage, per billing period, or across the obligation).

## Configure usage pricing

On the obligation **Terms** tab:

1. Open the usage pricing controls.
2. Choose a pricing model: **Flat rate**, **Tiered usage**, **Volume (all units)**, or **Volume / block tiers**.
3. Enter the rate (flat rate) or the tier thresholds and rates (tiered models) from your commercial tier schedule.
4. Set the **tier scope** (**Per usage**, **Per billing period**, or **Per obligation**) to match how your commercial tiers reset.
5. Save the obligation.

Tier schedules live on the performance obligation, not the item catalog, so configure pricing on each obligation even when several obligations share an item. See [Usage Pricing Models: Reference](./usage-pricing-models-reference) for what each model and tier scope option does.

## Record and reconcile usage

Record usage from the contract (**Update Usage**, **Import from CSV**, or **Export Usage**), through [multi-contract bulk import](./import-multi-contract-usage), or through the contracts API. Each usage row needs a date and quantity. DualEntry maps the row to the usage obligation and applies the pricing model configured on that obligation.

Editing, adding, or archiving a usage row can leave later rows in the same tier scope with stale amounts. That happens because graduated and block pricing depend on prior cumulative quantity in the scope window. When DualEntry detects sibling rows that no longer match the schedule, it offers a reconcile flow with a dry-run preview of the corrected rates and amounts.

Review the preview carefully before you apply it. The dry run shows which usages change and what the new amounts will be, so you can confirm the commercial result before DualEntry writes the updates. After you apply reconciliation, sibling usages match the current cumulative quantity, and recognition and usage invoicing follow the corrected figures on the next schedule refresh.

## Next steps

* Review pricing model and tier scope definitions and examples in [Usage Pricing Models: Reference](./usage-pricing-models-reference).
* 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).
* Review recognized and deferred balances in [Reporting](./reporting).
* See how usage fits the recognition step in [ASC 606 in DualEntry](./asc-606).