Example use cases for Calculated Charges
These examples illustrate how calculated charges are generated and invoiced under different scenarios.
Basic scenario
In this scenario, the calculated charge and eligible charges share the same start date and billing period.
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Subscription and Charge Configuration:
Subscription start: 01/01/2026
Subscription end: 01/01/2027
Term length: 12 months
Charge Names
Charge Model & Configuration
Billing Period
Start Date & End Date
Enterprise License Recurring (Per Unit), $100.00 / month, Billing Timing: in Advance Month 01/01/2026 ~ Subscription end date Loyalty Discount Discount (Fixed Percentage), 10% off Enterprise License Month 01/01/2026 ~ Subscription end date API Calls Usage (Per Unit), $1.00 / unit, Billing Timing: in Arrears Month 01/01/2026 ~ Subscription end date Premium Support Fee Calculated, 8% of Net Spend (Min $150.00 / month), Billing Timing: in Arrears. Eligible Charge filter: Calculated Charge’s Subscription; Eligible Account Filter: Calculated Charge’s invoice owner Month 01/01/2026 ~ Subscription end date -
First Invoice (Jan 2026) - includes only charges billed in advance (License & Discount).
Invoice #: INV-001
Date: 01/01/2026
Due Date: 02/01/2026
Invoice Details
Description
Service Period
Quantity
Amount
Tax (10%)
Total
Enterprise License 01/01/2026 – 01/31/2026 10 $1,000.00 $100.00 $1,100.00 Loyalty Discount 01/01/2026 – 01/31/2026 1 ($100.00) ($10.00) ($110.00) Subtotal: $900.00 Tax: $90.00 Total Due: $990.00 -
Second Invoice (Feb 2026) - Includes Feb Enterprise License (In Advance), Jan API Calls (In Arrears), and Jan Premium Support Fee (In Arrears)
Jan Usage Activity: 700 Units
Invoice #: INV-002
Date: 01/02/2026
Due Date: 03/01/2026
Invoice Details
Description
Service Period
Quantity
Amount
Tax (10%)
Total
Enterprise License 02/01/2026 – 02/28/2026 10 $1,000.00 $100.00 $1,100.00 Loyalty Discount 02/01/2026 – 02/28/2026 1 ($100.00) ($10.00) ($110.00) API Calls 01/01/2026 – 01/31/2026 700 $700.00 $70.00 $770.00 Premium Support Fee 01/01/2026 – 01/31/2026 1 $150.00 $15.00 $165.00 Subtotal: $1,750.00 Tax: $175.00 Total Due: $1,925.00 This table explains how the Premium Support Fee $150 on INV-002 was calculated using charges from both INV-001 and INV-002 that share the Jan 1 – Jan 31 service period.
Charge Name
Service Period
Amount
Invoice Number
Enterprise License 01/01/2026 - 01/31/2026 $1,000.00 INV-001 Loyalty Discount 01/01/2026 - 01/31/2026 ($100.00) INV-001 API Calls 01/01/2026 - 01/31/2026 $700.00 INV-002 Total Eligible Spend $1,600.00 Calculation (8%) $128.00 Applied Amount $150.00 ( $120.00 < Min Amount $150)
Proration scenario
In this scenario, the calculated charge starts mid-period. Eligible charges and minimum/maximum amounts are prorated based on the overlapping service period.
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Subscription & Charge Configuration:
Subscription Start: 02/01/2026
Subscription End: 02/01/2027
Term Length: 12 Months
Charge Names
Charge Model & Configuration
Billing Period
Start Date & End Date
Enterprise License Recurring (Per Unit), $12.00 / each, Billing Timing: in Advance Month 02/01/2026 ~ Subscription end date API Calls Usage (Per Unit), $2.50 / unit, Billing Timing: in Arrears Month 02/01/2026 ~ Subscription end date Premium Support Fee Calculated, 5% of Net Spend (Min $100/month, Max $500/month), Billing Timing: in Arrears.
Eligible Charge filter: Calculated Charge’s Subscription; Eligible Account Filter: Calculated Charge’s invoice owner
Month 02/10/2026 ~ Subscription end date -
First Invoice (Feb 1, 2026) - only includes the Enterprise License billed in advance.
Invoice #: INV-001
Date: 02/01/2026
Due Date: 03/01/2026
Invoice Details
Description
Service Period
Quantity
Amount
Tax (10%)
Total
Enterprise License 02/01/2026 – 02/28/2026 10 $120.00 $12.00 $132.00 Subtotal: $120.00 Tax: $12.00 Total Due: $132.00 -
Second Invoice (Mar 1, 2026) - includes Mar Enterprise License (In Advance), Feb API Calls (In Arrears), and the Prorated Feb Premium Support Fee (In Arrears).
Feb Usage Activity: 1,600 Units
Invoice #: INV-002
Date: 03/01/2026
Due Date: 04/01/2026
Invoice Details
Description
Service Period
Quantity
Amount
Tax (10%)
Total
Enterprise License 03/01/2026 – 03/31/2026 10 $120.00 $12.00 $132.00 API Calls 02/01/2026 – 02/28/2026 1,600 $4,000.00 $400.00 $4,400.00 Premium Support Fee - Proration 02/10/2026 – 02/28/2026 1 $139.79 $13.98 $153.77 Subtotal: $4,259.79 Tax: $425.98 Total Due: $4,685.77 This table shows how the Premium Support Fee $139.79 on INV-002 was calculated. Note that the eligible amounts are prorated based on the Support Fee's active days (19 days out of 28) (Assuming the billing rule is to use the actual number of days within a month).
Charge Name
Service Period
Original Amount
Eligible Amount
Invoice Number
Enterprise License 02/01/2026 - 02/28/2026 $120.00 $81.43 INV-001 API Calls 02/01/2026 - 02/28/2026 $4,000.00 $2,714.29 INV-001 Total Eligible Spend $2,795.72 Prorated Min / Max Min: $67.86 / Max: $339.29 Calculation (5%) $139.79 Applied Amount $139.79 (> Min $67.86 AND < Max $339.39)
Credit back scenario
This scenario covers two sub-cases: removing an eligible charge, where the calculated charge remains unchanged, and removing a calculated charge, where a prorated credit is issued for the previously invoiced amount.
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Subscription & Charge Configuration:
Subscription Start: 01/01/2026
Subscription End: 01/01/2027
Term Length: 12 Months
Charge Names
Charge Model & Configuration
Billing Period
Start Date & End Date
Email License Recurring (Per Unit), $10.00 / month, Billing Timing: in Advance Month 01/01/2026 ~ Subscription end date Message License Recurring (Per Unit), $20.00 / month, Billing Timing: in Advance Month 01/01/2026 ~ Subscription end date Premium Support Fee Calculated, 10% of Net Spend (No Min, Max), Billing Timing: in Advance. Eligible Charge filter: Calculated Charge’s Subscription; Eligible Account Filter: Calculated Charge’s invoice owner Month 01/01/2026 ~ Subscription end date -
First Invoice (Jan 1, 2026):
Invoice #: INV-001
Date: 01/01/2026
Due Date: 02/01/2026
Invoice Details
Description
Service Period
Quantity
Amount
Tax (10%)
Total
Email License 01/01/2026 – 01/31/2026 100 $1,000.00 $100.00 $1,100.00 Message License 01/01/2026 – 01/31/2026 200 $4,000.00 $400.00 $4,400.00 Premium Support Fee 01/01/2026 – 01/31/2026 1 $500.00 $50.00 $550.00 Subtotal: $5,500.00 Tax: $550.00 Total Due: $6,050.00 -
Sub case 1: Eligible charge is removed in an invoiced period (Calculated charge is not refunded)
On 2026 Jan 15th, the end user called to remove the Email license from 2026/01/20.
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Second Invoice (Feb 1, 2026) - includes Feb charges and the Credit for the removed Email License.
Note: The support fee for Jan remains $500.00 despite the removal of the Email license.Invoice #: INV-002
Date: 02/01/2026
Due Date: 03/01/2026
Invoice Details
Description
Service Period
Quantity
Amount
Tax (10%)
Total
Message License 02/01/2026 – 02/28/2026 200 $4,000.00 $400.00 $4,400.00 Premium Support Fee 02/01/2026 – 02/28/2026 1 $400.00 $40.00 $440.00 Email License - Proration Credit 01/20/2026 – 01/31/2026 100 ($387.10) ($38.71) ($425.81) Subtotal: $4,012.90 Tax: $401.29 Total Due: $4,414.19
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Sub case 2: Calculated charge is removed in an invoiced period (Calculated charge is refunded)
On 01/15/2026, the end user decided to remove the Support Fee from 01/20/2026.
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Second Invoice (Feb 1, 2026) - includes Feb charges and the Credit for the removed Support Fee.
Invoice #: INV-002
Date: 02/01/2026
Due Date: 03/01/2026
Invoice Details
Description
Service Period
Quantity
Amount
Tax (10%)
Total
Email License 02/01/2026 – 02/28/2026 100 $1,000.00 $100.00 $1,100.00 Message License 02/01/2026 – 02/28/2026 200 $4,000.00 $400.00 $4,400.00 Premium Support Fee - Proration Credit 01/20/2026 – 01/31/2026 1 ($193.55) ($19.36) ($212.91) Subtotal: $4,806.45 Tax: $480.64 Total Due: $5,287.09 Premium Support Fee Proration Credit -$193.55 is calculated as follows: (Assuming the billing rule is to use actual number of days within a month):
- Active Period: 01/01 ~ 01/19 (19 Days)
- Unused Period: 01/20 – 01/31 (12 Days)
- Calculation: 500.00 (OriginalFee) × ( 12UnusedDays / 31TotalDays ) = $193.55
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Owner transfer scenario
This scenario demonstrates how subscription ownership changes affect when eligible charges' parent invoice owner has been changed in midterm.
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Subscription & Charge Configuration:
Subscription 1 Start 01/01/2026 Subscription 1 End 01/01/2027 Term Length 12 Months Subscription 2 Start 01/16/2026 Subscription 2 End 01/01/2027 Term Length 11.5 Months -
Subscription 1
Charge Names Charge Model & Configuration Billing Period Start Date & End Date Email License Recurring (Per Unit), $100.00 / month, Billing Timing: in Advance Month 01/01/2026 ~ Subscription end date -
Subscription 2
Charge Names
Charge Model & Configuration
Billing Period
Start Date & End Date
Email License Recurring (Per Unit), $10.00 / month, Billing Timing: in Advance Month 01/16/2026 ~ Subscription end date Premium Support Fee Calculated, 8% of Net Spend (No Min, Max), Billing Timing: in Advance
Eligible Charge filter: All Charges; Eligible Account Filter: Calculated Charge's invoice owner
Month 01/16/2026 ~ Subscription end date The following transactions happened on the two accounts:
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On 01/01/2026, Account 1 purchased an Email License under a new Subscription (Sub 1), it's subscription owner is Account 2.
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On 01/01/2026, the first invoice of Sub 1 is generated in advance.
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On 01/10/2026, due to organization change, Sub 1's invoice owner is changed to Account 2.
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On 01/16/2026, Account 1 purchased a new subscription (Sub 2) with the same Email License and Premium Support.
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First Invoice (Jan 1, 2026)
INVOICE (Account 1)
Invoice #: INV-001
Date: 01/01/2026
Due Date: 02/01/2026
Invoice Details
Description
Service Period
Quantity
Amount
Tax (10%)
Total
Sub 1: Email License 01/01/2026 – 01/31/2026 100 $10,000.00 $1,000.00 $11,000.00 Total Due: $11,000.00 Owner Transfer Event: on 01/10/2026, Sub 1’s invoice owner is changed from Account 1 to Account 2. This does NOT affect the historical invoice item created on Jan 1. The Email License charge in INV-001 is still eligible for the Premium Support Fee.
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Second Invoice (Jan 16, 2026)
INVOICE (Account 1)
Invoice #: INV-002 Date: 01/16/2026 Due Date: 02/16/2026
Invoice Details
Description
Service Period
Quantity
Amount
Tax (10%)
Total
Sub 2: Email License 01/16/2026 – 01/31/2026 200 $10,322.58 $1,032.26 $11,354.84 Sub 2: Premium Support Fee 01/16/2026 – 01/31/2026 1 $1,238.71 $123.87 $1,362.58 Subtotal: $11,561.29 Tax: $1,156.13 Total Due: $12,717.42 This table shows how the Premium Support Fee $1,238.71 on INV-002 was calculated.
Charge Name
Service Period
Original Amount
Eligible Amount
Invoice Number
Sub 2: Email License 01/16/2026 – 01/31/2026 $10,322.58 $10,322.58 INV-002 Sub 1: Email License 01/01/2026 – 01/31/2026 $10,000.00 $5,161.29 (prorated) INV-001 Total Eligible Spend $15,483.87 Calculation (8%) $1,238.71 Applied Amount $1,238.71