Challenge

In today’s dynamic subscription economy, usage-based billing is becoming increasingly important. Businesses are shifting from flat-rate pricing models to more flexible and consumption-driven billing structures.

How It Works

The Rated Usage feature enables customers to submit usage data that has already been priced (excluding taxes) for later aggregation and invoicing. Here's how it works:

Set Up Plans with Rated Usage Options

• Create Rated Usage Options that contain meta information about the underlying product.
• Set up a plan to configure contract terms, learn more here https://docs.nitrobox.io/docs/plans

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Delay Aggregation and Billing

At the end of the billing period of a contract it will both aggregate all usages as well as invoice. It is recommended to set up a delay for both processes.

For the aggregation the reason are late usages - some of you usage data might take a few more minutes (oder hours, depending on your integration) to reach our system. If no delay is configured you might end up not invoicing all usages for a month, leading to a needed correction.

From a billing perspective, introducing a billing delay helps minimize the number of invoices by allowing time to consolidate multiple options or aggregations under a single contract into one invoice.

Send Rated Usages

• Then send the rated usages to our system, you can find the API here

Aggregation and Invoicing

• We will then aggregate the rated usages, and once the billing period + delay is reached, line items will be created
• Which will then be invoiced