Connecting to Billing

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How Events Flow to Billing

1. Events → Usage data transmitted to Flexprice
2. Features → Define what you’re tracking and how to aggregate
3. Plans → Set pricing for features
4. Subscriptions → Connect customers to plans
5. Invoices → Automatic billing based on usage

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Prerequisites

• A metered feature created and configured
• Events being transmitted and validated
• A customer created in Flexprice

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Step 1: Create a Pricing Plan

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Navigate to Plans

1. Log into your Flexprice Admin Dashboard
2. In the left sidebar, click on Product Catalog
3. Click on Plans
4. Click “Create Plan”

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Configure the Plan

1. Plan Name: Give your plan a descriptive name (e.g., “Basic Plan”, “Pro Plan”)
2. Description: Optional description of what the plan includes
3. Billing Cycle: Choose how often customers are billed (monthly, annually, etc.)

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Add Your Feature

1. Click “Add Feature” or “Add Charge”
2. Select your metered feature from the list
3. Configure the pricing:

• Price Model: Choose “Usage Based”
• Price: Set the price per unit (e.g., $1 per credit)
• Free Tier: Optional free usage before billing starts

• Feature: Model Usage
• Price: $1.00 per credit
• Free Tier: 100 credits per month

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Advanced Pricing Options

• First 1000 credits: $1.00 each
• Next 1000 credits: $0.80 each
• Additional credits: $0.60 each

• 1000 credits for $800 (effective$0.80 per credit)

• Set percentage discounts based on usage volume

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Save the Plan

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Step 2: Assign Plan to Customer

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Create Subscription

1. Go to Customers in the left sidebar
2. Find and click on your customer
3. Click “Create Subscription”
4. Select the plan you just created
5. Set the subscription start date
6. Click “Create Subscription”

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Verify Subscription

• Subscription status: Active
• Plan name and billing cycle
• Next billing date

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Step 3: Monitor Usage and Billing

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Check Upcoming Invoices

1. Go to the customer’s subscription page
2. Click on “Upcoming Invoices” tab
3. You’ll view a preview of the next invoice with:
   • Usage quantities from your events
   • Calculated amounts based on your pricing
   • Billing period information

Subscription    Description     Interval        Quantity    Amount
Test Feature    Usage Based     Aug 22 - Sep 22    2         $2

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Understanding the Billing

• Quantity: Total usage aggregated from your events
• Amount: Calculated based on your pricing plan
• Interval: Current billing period
• Description: Shows “Usage Based” for metered features

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Real-World Example

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1. Feature Configuration

• Feature Name: Model Usage
• Event Name: model.usage
• Aggregation: Sum of credits
• Usage Reset: Periodic (monthly)

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2. Events Transmitted

[
  {
    "event_name": "model.usage",
    "external_customer_id": "cust_123",
    "properties": { "credits": 5 }
  },
  {
    "event_name": "model.usage",
    "external_customer_id": "cust_123",
    "properties": { "credits": 3 }
  }
]

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3. Plan Configuration

• Plan Name: Basic Plan
• Feature: Model Usage
• Pricing: $1.00 per credit
• Free Tier: 10 credits per month

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4. Billing Calculation

• Total Usage: 5 + 3 = 8 credits
• Free Credits: 10 (no charge for first 10)
• Billable Credits: 0 (8 < 10, so no charge)
• Amount: $0.00

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5. If More Usage Occurs

• Total Usage: 15 credits
• Free Credits: 10
• Billable Credits: 5
• Amount: $5.00

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Advanced Billing Scenarios

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Multiple Features

• Model Usage: $1.00 per credit
• API Calls: $0.01 per call
• Storage: $0.10 per GB

• 50 credits consumed
• 1000 API calls
• 5 GB storage

Model Usage     Usage Based     Aug 22 - Sep 22    50    $50
API Calls       Usage Based     Aug 22 - Sep 22    1000  $10
Storage         Usage Based     Aug 22 - Sep 22    5     $0.50
Total: $60.50

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Tiered Pricing

• Model Usage:
  • First 1000 credits: $0.80 each
  • Next 1000 credits: $0.60 each
  • Additional: $0.40 each

• First 1000: $800
• Next 1000: $600
• Additional 500: $200
• Total: $1600

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Monitoring and Analytics

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Usage Trends

1. Go to Usage Tracking → Query
2. Select your feature and customer
3. View usage over time to identify patterns

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Billing Analytics

1. Go to Invoices section
2. View historical invoices and revenue
3. Analyze customer usage patterns

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Common Billing Issues

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1. No Charges Appearing

• Feature not added to plan
• Customer not subscribed to plan
• Usage below free tier
• Wrong billing period

• Verify feature is in the plan
• Check subscription status
• Review free tier settings
• Confirm billing cycle dates

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2. Wrong Amounts

• Incorrect pricing configuration
• Wrong aggregation values
• Billing period mismatch

• Review plan pricing settings
• Check event aggregation
• Verify billing cycle alignment

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3. Unexpected Charges

• Events transmitted to wrong customer
• Incorrect usage reset setting
• Duplicate events

• Verify external_customer_id
• Check Usage Reset configuration
• Review event history for duplicates

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Best Practices

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1. Test Billing Setup

1. Create a test customer
2. Transmit a few test events
3. Verify charges appear correctly
4. Check invoice calculations

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2. Monitor Usage Patterns

• Usage trends and spikes
• Customer behavior patterns
• Revenue impact of pricing changes

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3. Set Up Alerts

• Unusual usage spikes
• Failed billing attempts
• Revenue thresholds

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4. Document Pricing

• Feature pricing structure
• Free tier limits
• Billing cycle details
• Customer-specific overrides

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Pricing Strategies

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Usage-Based Pricing

• Aligns cost with value
• Scales automatically
• Fair for customers

• Revenue can be unpredictable
• Complex to forecast

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Tiered Pricing

• Encourages higher usage
• Predictable revenue at scale
• Rewards loyal customers

• More complex to configure
• Can be confusing for customers

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Hybrid Models

• Base subscription fee
• Usage-based charges
• Volume discounts

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Next Steps

1. Monitor Performance - Track usage and revenue
2. Optimize Pricing - Adjust based on customer behavior
3. Scale Operations - Add more features and customers
4. Automate Processes - Set up webhooks and integrations

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Troubleshooting

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”No charges in upcoming invoice”

• Check that events are being transmitted
• Verify feature is in the plan
• Confirm customer subscription is active
• Review free tier settings

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”Wrong billing amounts”

• Verify pricing configuration
• Check event aggregation values
• Review billing period dates
• Confirm usage reset settings

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”Unexpected charges”

• Review recent events for the customer
• Check for duplicate events
• Verify external_customer_id mapping
• Review plan configuration changes

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Getting Help

1. Check the Event Debugger for event processing status
2. Review your plan configuration carefully
3. Verify customer subscription status
4. Contact support with specific examples and error messages