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Product Setup: Monthly billing of annual overage fee

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Product Setup: Monthly billing of annual overage fee

Has anyone seen this scenario?


I have a group who wants to bill an annual overage fee on a monthly basis. 


The yearly transaction count would be started in January. Once the count exceeds 85,000 annually, the customer would be charged .38 for every additional transaction on a monthly basis.


I am planning on handling this with an annual overage fee and billing it annually. Any other ideas?

Support SME

Re: Product Setup: Monthly billing of annual overage fee

Hi @MKent525 ,


Here's one common practice for the described scenario, let me know if this setup would work for you!


Basically we'll need to create a Charge with the model set to "Overage Pricing". The included units should be 85000/12 = 7084 (rounded), and the List Price is 0.38. The Billing Period should be Month:




And the Rolling options should be configured like this:




Now, when I upload 10K usage units for every month, it will only start charging on a monthly basis once the total amount for the 12 periods is more than 7084 * 12:




Supporting reference:


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