Billing concepts overview

Introduction

This article provides a comprehensive introduction to the billing system in the AppXite Platform. Understanding these fundamental concepts will help you navigate the platform's billing features and interpret invoices correctly.

In this article:

• Key billing components
• Subscription types
• Charge types
• Billing process overview
• Common billing scenarios
• Understanding your invoice

Key billing components

The Platform billing system consists of these key components:

Subscription

A Subscription represents a Customer's entitlement to use a specific Product or service. Each Subscription has:

• Start Date: When the Subscription begins
• End Date: When the Subscription expires (if applicable)
• Quantity: Number of Licenses/seats (for License-Based Subscriptions)
• Status: Active, Suspended, or Canceled

Billing Cycle

The Billing Cycle determines when invoices are generated and when Subscription charges are applied. Key aspects include:

• Billing Cycle Day: The day of the month when the Billing Cycle begins
• Billing Frequency: How often the Customer is billed (monthly, annual, etc.)
• Billing Period: The specific timeframe covered by each Invoice

Subscription types

The Platform supports three Subscription types, each with different billing characteristics:

1. License-Based Subscriptions: Based on number of User Licenses
2. Usage-Based Subscriptions: Based on actual usage
3. One-Time Subscriptions: One-time purchases without recurring charges

See "Subscription Types Explained" for detailed information on each type.

Charge types

Charges appear on invoices with specific charge types that indicate the nature of the charge:

• Purchase Fee: Initial fee for new Subscriptions
• Cycle Fee: Recurring fee for each Billing Period
• Correction: Adjustments for Subscription changes
• Usage Fee: Charges for Usage-Based services
• One-Time Fee: Non-recurring charges

See "Complete Guide to Charge Types" for detailed explanations.

Billing process overview

For License-Based Subscriptions

1. Purchase: Customer purchases a Subscription with specific Quantity
2. Initial Invoice: Purchase Fee appears on next Invoice (prorated if applicable)
3. Regular Billing: Cycle Fee appears on each Invoice for the upcoming period
4. Changes: If Quantity changes mid-cycle, Corrections appear on the next Invoice
5. Renewal: Subscription automatically renews unless canceled

For Usage-Based Subscriptions

1. Purchase: Customer purchases a Usage-Based Subscription
2. Usage: Customer uses resources during the Billing Period
3. Metering: Platform collects usage data throughout the period
4. Invoice: Usage Fee appears on Invoice after the Billing Period ends

For One-Time Subscriptions

1. Purchase: Customer makes a one-time purchase
2. Invoice: One-Time Fee appears on the next Invoice
3. No Renewal: No further charges unless additional purchases are made

Common billing scenarios

Prorated charges

When Subscription changes occur mid-cycle, the Platform calculates prorated charges:

• Adding Licenses: Customer is charged only for the remaining portion of the current period
• Removing Licenses: Customer receives credit for the unused portion of prepaid Licenses
• Changing Plans: Customer receives credit for the old plan and is charged for the new plan

Subscription status changes

Changes to Subscription status affect billing as follows:

• Suspension: Billing stops during suspension period
• Reactivation: Billing resumes with prorated charges
• Cancellation: Final charges or credits are calculated through cancellation date

Understanding your invoice

Invoices in the AppXite Platform display:

• Invoice Date: When the Invoice was generated
• Billing Period: The timeframe covered by the Invoice
• Subscription Details: Name, Quantity, and period for each Subscription
• Charge Types: Type of each charge (Purchase Fee, Cycle Fee, etc.)
• Amount: Cost for each line item

For detailed Invoice information, see "Navigating The Invoices".

Related content

• Subscription Types Explained
• Billing Cycles and Frequency 
• Charge Types
• Navigating the Invoices