In the previous article on Usage-Based Pricing, merchants evaluated whether usage-based pricing aligns with their business, cost structure, and customer behavior. Once that decision is made, the focus typically shifts from fit to execution.
At this stage, merchants often need clarity on practical questions, such as how usage charges are assigned to billing periods, how usage data participates in billing and settlement, where finalized charges can be reviewed and reconciled, and whether the system can reliably support ongoing usage-based billing at scale.
This article explains how Subotiz operationalizes usage-based pricing through subscriptions, usage data, and settlement workflows, and points to the relevant configuration paths for implementation.
Settlement Logic for Usage-Based Pricing in Subotiz
Usage-based charges are not one-time events. They accumulate over time, and without a clear settlement structure, usage charges can quickly become difficult to reconcile or explain to customers.
In Subotiz, usage-based pricing is managed through product pricing and anchored by subscription relationships. The subscription defines the billing period and ownership of charges, while usage charges generated during that period are automatically grouped into the correct billing cycle.
This structure prevents timing mismatches between when usage occurs and when charges are settled, reducing reconciliation complexity and downstream billing disputes.
Subotiz supports multiple settlement approaches depending on business needs, including:
- Prepaid usage models, where customers purchase credits or quotas in advance and consume them during the subscription period.
- Postpaid usage models, where actual usage is measured during the billing cycle and charged at the end of the period.
Regardless of the approach, usage charges are always clearly attributed to a defined subscription period and flow through the same settlement process.
Related articles:
- Product pricing｜Configuring Usage-based (Per Unit) (commonly used for postpaid usage models)
- Product pricing｜Creating a Package Recurring Plan (commonly used for prepaid usage models)
How Usage Data Participates in Billing
Usage-based pricing in Subotiz is not just a pricing concept. It is an execution framework that combines merchant-defined billing rules with system-level settlement logic.
Merchants first define the usage unit and unit price within product pricing. Actual usage data is then reported by the merchant, based on their business logic, either through system workflows or API integration.
Subotiz calculates charges using the predefined pricing rules and incorporates those charges directly into the settlement process.
Common usage units include:
- API call counts
- AI token consumption
- Credits or quota usage
- Content or resource generation events
This approach allows merchants to control which actions generate charges, while Subotiz manages aggregation, calculation, and billing execution across subscription periods.
Related articles:
Settlement Results and Where to Review Usage Charges
Because usage charges accumulate over time, clear and traceable records are essential for reconciliation, refunds, and customer communication.
In Subotiz, reported usage data becomes part of the subscription’s billing cycle. Based on configured pricing rules and actual usage, the system generates charge records and completes settlement accordingly.
After settlement, merchants can review usage-related charges through the following modules:
- Transactions: View charge results, payment status, and settlement amounts for reconciliation and analysis.
- Invoices: Present finalized usage charges to customers with clear line-item breakdowns.
- Email Notifications: Notify customers when charges are settled, transactions are created, or subscription status changes occur.
Together, these components create a closed-loop flow from usage tracking to settlement and customer communication, reducing operational overhead related to billing explanations and financial follow-up.
Related articles:
How Usage-Based Billing Is Carried Within Subotiz
Within Subotiz, usage-based pricing is carried through subscriptions and a unified billing and settlement structure.
Recurring usage charges are systematically aggregated into the appropriate billing period, ensuring that settlement results remain clear even when usage fluctuates.
This structure allows merchants to maintain predictable and manageable billing outcomes while supporting flexible, consumption-based pricing models.
Pre-Launch Support for Usage-Based Pricing
Before usage-based pricing goes live, Subotiz works with merchants to validate that the billing structure can be executed and managed effectively.
During onboarding, Subotiz typically supports merchants by:
- Defining usage units, pricing rules, and charge logic through product pricing.
- Designing subscription structures that clearly define billing cycles and charge ownership.
- Validating usage data integration to ensure stable participation in billing and settlement flows.
This process helps merchants finalize their billing structure before launch and maintain clarity and control once usage-based pricing is in production.
For additional confirmation during usage model design, settlement planning, or usage data integration, merchants may contact the Subotiz Solution team at merchant-service@subotiz.com.
Starting Usage-Based Pricing in Subotiz
Merchants who have confirmed that usage-based pricing fits their business can follow this general sequence:
- Review usage-based pricing principles and design considerations → Subotiz｜Usage-Based Pricing: Applicable Business Models and Design Considerations
- Configure usage-based pricing at the product level → Product pricing｜Configuring Usage-based (Per Unit)
- Extend pricing structures as needed → Product pricing｜Understanding Tiered Pricing Models (Volume vs Graduated)
In Subotiz, usage-based pricing is executed through merchant-defined pricing rules and system-managed billing and settlement workflows. Subscriptions define billing periods, usage data drives charge calculation, and settlement processes ensure that usage charges are clearly attributed, traceable, and manageable. This structure allows merchants to preserve pricing flexibility while maintaining clarity and control as usage and transaction volume scale.