Usage-based charges can be either bill fully or prorated based on the number of days used.
recurring
argument sets to true
) with a charge_model
defined to standard
, graduated
or volume
can be prorated.prorated
parameter set to true
, an important behavior is triggered.
Adding a new unit during the billing period results in the amount due for that unit being prorated based on the number of
days it was used.This means that your customers will only be charged for the actual number of days they utilized a billing unit. Let’s consider
the example of prorated Seats
, where each seat costs $10. If a new seat is added on June 10th, the unit will be prorated for 22 days, resulting in a corresponding prorated charge for that duration. This ensures fair and accurate billing based on the
usage period.Example: (1 Seat x $10), used for 22 days = $7.33By leveraging prorated charges in Lago, you can provide transparent and cost-effective billing for services that are added or
removed mid-billing cycle, adjusting the charges according to the actual duration of usage.recurring
sets to false
) are automatically fully-billed.prorated
parameter set to false
, an important behavior occurs.
If a new unit is added during the billing period, the amount due for that unit is billed in full, regardless of the number of
days it was used.This means that your customers will be charged for the entire billing period, even if they only utilized the billing unit for a
few days. Let’s consider the example of fully-billed Seats, where each seat costs $10. If a new seat is added on June 10th, it will
be billed for the full billing period. For instance, if there is one seat that was used for 22 days in the billing period, the
charge would be calculated as follows:(1 Seat x $10), used for 22 days = $10.By utilizing fully-billed charges in Lago, you ensure that you do not lose revenue by billing customers for the entire billing period,
regardless of the actual duration of usage.