Billing Models

A subscription is valid within a period of time called a subscription period. A subscription period is divided into billing periods; billing periods are equal time intervals. The billing date is the first day of the next billing period. A customer is charged a recurring fee and resource overuse fee once per billing period (on the billing date). The Billing Model parameter in service plans define what billing model is applied to the respective subscriptions.

There are three billing models:

  • Charge Before Subscription Period. A customer is charged for their subscription and resource setup fees, and all recurring fees for the whole subscription period upon purchase. On each billing date a customer is charged for resource overuse (if any occurs during the previous billing period).
  • Charge Before Billing Period. A customer is charged for their subscription and resource setup fees, and all recurring fees for the first billing period on purchase. On each billing date a customer is charged for the next billing period and for resource overuse (if any occurs during the previous billing period).
  • Charge After Billing Period. A customer is charged for their subscription and resource setup fee upon purchase. On each billing date a customer is charged for the previous billing period and for resource overuse (if any occurs).

For more details, please refer to the Billing Provider's Guide.