Finance

Usage-based billing

Also called: Metered billing · Consumption billing

Pricing and invoicing from measured consumption rather than a fixed periodic fee.

Usage billing and rebates are structurally the same problem seen from opposite ends: both take a stream of transactions, apply a rate hierarchy where the most specific rule wins, and produce a financial amount that must reconcile to the ledger.

That is why running them on the same engine is worth doing — the rate-card hierarchy, the tiered and banded pricing methods, the drill-back to the transaction and the GL reconciliation are all shared.

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