Progressive billing, also known as threshold billing, automatically triggers an invoice when a customer’s cumulative usage reaches predefined thresholds. This method ensures that customers cannot exceed certain usage limits without ensuring payment is received, reducing the risk of unpaid services or fraud.
Setting up thresholds
Defining step-based thresholds
Invoice #1
: When the lifetime usage reaches $5;Invoice #2
: When the lifetime usage reaches $20;Invoice #3
: When the lifetime usage reaches $50;Invoice #4
: When the lifetime usage reaches $100;Invoice #5
: When the lifetime usage reaches $1,000;Defining a recurring threshold
Progressive billing invoice behavior
Progressive billing invoice detail
draft
status.
The reason for this is that draft invoices are not finalized
, and progressive billing calculations are based solely on finalized
invoices. Including draft invoices in these calculations would significantly alter the accuracy of the progressive billing process.
subscription.usage_threshold_reached
, providing details about the subscription and the specific threshold that was exceeded.