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Setting up Usage-based Billing 

Introduction 

Usage-based billing allows you to charge customers based on their actual consumption of your product or service. Setting up usage-based billing in Chargebee is straightforward, enabling you to ingest and track usage, define pricing, and generate invoices seamlessly. You can do this in the following key steps:

  1. Ingest your usage events into Chargebee
  2. Define metered features
  3. Link pricing for metered features

This guide will give you a quick summary of these steps to configure usage-based billing for your business. Visit the respective documents for detailed step-by-step configuration.

Ingest your Usage Events into Chargebee 

The first and often the most challenging step in usage tracking and billing is data ingestion. Chargebee ensures that data ingestion is no longer a roadblock but a streamlined starting point for your usage tracking/usage-based billing journey. You can seamlessly ingest your usage data into Chargebee without the need to reformat or modify it to fit specific templates or schema. Chargebee's Billing is designed to work with raw data, capturing and processing it directly as you provide it. This minimizes the need for manual intervention and streamlines your workflow. Chargebee supports three simple methods for importing usage events:

  • Using the Usages API: Send usage events programmatically to Chargebee in real-time or in batches. This method is ideal for automated and large-scale data ingestion.
  • Importing Usage Events in Bulk: Upload usage data in bulk using a supported file format like CSV. This is useful for processing historical data or large volumes of usage records.
  • Adding Usages Manually: Enter usage events manually through the Chargebee Billing User Interface(UI) for smaller datasets or one-off entries.

Each method ensures that your usage data is recorded accurately and ready for billing. Learn how to bring in your usage events into Chargebee Billing.

Define Metered Features 

Metered features represent specific aspects of your product or service that you want to track and bill customers for, such as tasks automated, API calls, data usage, or user seats. Learn how you can define metered features in your Chargebee Billing site.

Once metered features are defined, you can link pricing to each feature through plans and addons to determine how customers are charged based on their usage. Learn how you can link pricing for metered features in your Chargebee Billing site

Usage-based Billing in Action 

Once your setup is complete, Chargebee automates the usage-based billing process. Usage attributes are tracked via metered features for relevant subscriptions/customers. At the end of each billing period, Chargebee computes the invoice amount based on the customer's usage of the metered feature and price defined in the respective plan/addon.

Navigate to the Usage Summary section in the Subscription/Customer details page to review the usages.

Chargebee Billing Invoice clearly displays a break up of all charges based on customer's usages against each metered item.

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