How Sage Intacct determines variable billing quantities for usage

Example 1 - Usage without included units

Common parameters

Table 1-1: Reset usage quantity = After every invoice

Table 1-1 is the simplest usage example as the system counter starts at 0 after every invoice. Usage quantities are always priced each period at the tier in which they fall. If the usage recorded for May is 17, then the usage price would be 51 (17 * 3), and so on.

Table 1-2: Reset usage quantity = After each renewal

In Table 1-2, the system keeps track of the usage and bills each usage quantity based on the system counter tier rate for the contract term. When the contract is renewed, the system counter resets to zero.

Example 2 - Usage with included units

Common parameters

Table 2-1: Reset usage quantity = After each invoice

In Table 2-1, the customer gets 10 included units each billing period. The system counter does not start for an invoice period until all included quantities are used for the period.

Table 2-2: Reset usage quantity = After each renewal

In Table 2-2, the customer only gets to use the included units once per contract term. The system counter starts after the included units are used and then does not reset during the contract term. Each time usage is invoiced, the Computation memo for a usage billing amount will show the units included in the system count.

Example 3 - Recurring usage without included units

Common parameters

Table 3-1: Reset usage quantity = After each invoice

In table 3-1, the recorded usage repeats each subsequent month (so Feb = Jan + Feb, Mar = Jan + Feb + Mar, and so on). As the system counter resets after every invoice, the billing usage quantity and the system counter are the same.

Table 3-2: Reset usage quantity = After each renewal

In table 3-2, the recorded usage repeats each subsequent month (so Feb = Jan + Feb, Mar = Jan + Feb + Mar, and so on). However, the system counter resets upon renewal, so the billing usage quantity differs from the system counter. In March, the billing usage quantity is 17, which would seem to be a rate of 3, but the system counter is 32, so the rate of 2 applies.

Example 4 - Recurring usage with included units

Common parameters

Table 4-1: Reset usage quantity = After each invoice.

In table 4-1, the recorded usage repeats each subsequent month (so Feb = Jan + Feb, Mar = Jan + Feb + Mar, and so on). As 10 units are always included, the user is never billed for the recurring 10 units. As the system counter resets after every invoice, the billing usage quantity and the system counter are the same.

Table 4-2: Reset usage quantity= After each renewal

In table 4-2, the customer only gets to use the 10 included units once per contract term, so the recurring 10 quantity is included in the billing usage quantity after January.

Example 5 - Evergreen contract lines - without included units

In quantity-based evergreen contract lines, Quantity is recurring is always false and Reset usage quantity is always After each invoice.

Common parameters

Table 5-1

The system counter starts at 0 after every invoice. If the total usage for a contract line for a recurring billing period is negative, it has no effect on billing.

There is a Contracts configuration option that can affect in which recurring billing period usage quantities are counted. Learn more about usage in quantity-based evergreen lines.

Example 6 - Evergreen contract lines - with included units

In quantity-based evergreen contract lines, Quantity is recurring is always false and Reset usage quantity is always After each invoice.

Common parameters

Table 6-1

The customer gets 10 included units each billing period. The system counter does not start for an invoice period until all included quantities are used for the period. If the total usage for a contract line for a recurring billing period is negative, it has no effect on billing.

There is a Contracts configuration option that can affect in which recurring billing period usage quantities are counted. Learn more about usage in quantity-based evergreen lines.