We're excited to announce support for non-zero cost basis allocations, enabling usage-based revenue recognition for recurring commitments and prepaid usage.

What's new
Previously, recurring commitments required using fixed fees with straight-lined revenue recognition—where a $12,000 annual commitment would be recognized as $1,000/month regardless of actual usage.

Now, you can assign a per-unit cost basis to allocations, allowing revenue to be recognized as credits are consumed rather than on a time-based schedule. This enables true usage-based accrual accounting for prepaid commitments.

Use cases
- Usage-based recognition: A customer commits to $100,000 for the year. Instead of recognizing $8,333/month on a fixed schedule, recognize revenue as they actually consume credits—even if usage is uneven throughout the year.
- Prepaid credits: A customer purchases 10,000 credits at $0.50/credit. Revenue is recognized proportionally as each credit is used, not straight-lined over time.
- Flexible pricing: Combine free promotional credits (zero cost basis) with paid allocations in the same plan.

How it works
When configuring an allocation price, you can now specify a `per_unit_cost_basis`:
- Free allocations: Set cost basis to $0 (default behavior)
- Paid allocations: Set cost basis to match the prepayment amount divided by the allocation quantity
- Revenue recognition: As credits are consumed, revenue is recognized proportionally—not straight-lined over time like a fixed fee

This gives you the flexibility to choose between time-based recognition (fixed fees) and usage-based recognition (non-zero cost basis allocations) depending on your business model and accounting needs.

Questions? Reach out to our support team or check the documentation for implementation details.