Billing Management: #3 Billing Unbilled Charges Periodically
We had a smooth sail into Prorated Billing, a practice that ensures fairness when customers join, upgrade, or downgrade a service at any point during the billing cycle. But what happens when a customer requests additional limits or features during the cycle? Sending out a new invoice for each change would disrupt the billing cycle and create unnecessary confusion.
This is where unbilled charges become a deal breaker. Unbilled charges record the value of service consumed or upgrades applied during the cycle without immediately invoicing the customer. Instead, these charges are a running balance that will be added to the customer's next scheduled invoice. This allows businesses to keep a clean and consistent billing cycle while ensuring all customer amendments are adequately captured.
As many industries rely on recurring or consumption-based billing models, unbilled charges are a vital mechanism for tracking ongoing usage. Let's explore how they play out across different sectors.
Telecom
In telecommunication, services are consumed continuously, but billing happens over time. Most postpaid service bills follow this method of billing. For instance, a customer with a plan that includes 10 GB of data may exceed their allowance. If they use an additional 2GB at $5 per GB, that customer generates $10 in unbilled charges. These charges accumulate invisibly during the cycle and appear on the next invoice, alongside their monthly subscription. Similarly, charges like roaming, pay-per-view and international calls are all tracked as unbilled until the cycle closes.
Utilities
Electricity, water, and gas are in a similar situation due to the lag between consumption and billing. These utilities are charged based on their consumption rate and the slab they belong to. Consider a household with an electricity rate of $0.12 per kWh. By mid-month, the household has consumed 250kWh, equating to $30 in unbilled charges, even though the official invoice won't arrive until the end of the month. The service provider records the consumption internally as unbilled revenue, ensuring no usage goes unaccounted for.
SaaS
Unbilled charges often arise in Saas for usage-based or hybrid pricing models. The usage is tracked and added as unbilled charges periodically. A customer on a $100 per month base plan decides to upgrade to the $200 plan halfway through the billing cycle. The system calculates a prorated charge of $100 for the remainder of the cycle. Instead of sending out a separate invoice right away, the service provider decides to record this as unbilled. It remains pending until the end of the billing cycle, when it will be added to the customer's regular monthly invoices. By doing this, the company ensures the billing cycle remains intact, avoids confusing customers with multiple mid-cycle invoices, and protects its revenue.
Transportation & Logistics
Transport companies, especially those serving large shipments, both in terms of quantity and quality, often consolidate usage into a single invoice. Imagine a company making 50 travel bookings monthly, each costing $20. The total $1000 in unbilled charges accumulates as the trips are completed. Instead of invoicing after each ride, the travel agency waits until the billing period ends, offering convenience for the customers and administrative efficiency for the company.
Advertising Platform
Marketing agencies and Digital ads rely heavily on unbilled charges because campaigns run continuously. Suppose an advertiser runs a pay-per-click campaign at $1 per click, generating 500 clicks in a week, which equates to $500. These charges accrue daily but won't be billed until the advertiser hits a billing threshold, say $2000, or the monthly billing date arrives. This approach ensures uninterrupted campaign performance while keeping billing predictable.
Stretch Across with Zoho
With the volume of transactions each of these businesses handles, manually tracking unbilled charges will be challenging. This is where a modern billing system like Zoho Billing adds value. Zoho Billing automatically computes unbilled charges based on the data provided, whether it's extra data, additional API calls or incremental ad spend. Businesses can decide whether to,
- Invoice immediately by charging customers for accumulated unbilled charges at any point during the billing cycle.
- Consolidate automatically by letting Zoho Billing roll all unbilled charges into the customer's next billing date.
For instance, if a SaaS customer exceeds their plan by generating $300 in API consumption, the service provider can either issue a one-off invoice on any given day or allow Zoho Billing to add the charge seamlessly to the upcoming monthly bill. This flexibility reduces revenue leakage, improves cash flow, and enhances transparency to the customers.
By automating unbilled charge invoicing, Zoho Billing ensures that no consumption unit is lost. At the same time, businesses retain the freedom to charge customers in real time or on their preferred billing schedule.
Up Next
With prorated billing ensuring fairness and unbilled charges providing completeness, the next billing in line is Advance Billing. Unlike unbilled charges, where usage is billed after the fact, advance billing collects payment upfront before services are rendered, ensuring cash flow and reduced payment risk.
This model has advantages and challenges. Our upcoming post will examine how advanced billing works and the businesses that can adopt it.
Access your files securely from anywhere
Centralize Knowledge. Transform Learning.
All-in-one knowledge management and training platform for your employees and customers.
New to Zoho Recruit?
Zoho Developer Community
New to Zoho LandingPage?
Zoho LandingPage Resources
New to Zoho Survey?
New to Zoho CRM Plus?
Deliver unforgettable customer experiences
New to Zoho CRM Plus?
Deliver unforgettable customer experiences
New to Zoho Marketing Plus?
Everything you need to run your marketing
New to Zoho Marketing Plus?
Everything you need to run your marketing
New to Bigin?
Topic Participants
Hari Hara Sudhan. S
Sticky Posts
Community Learning Series | Digest #5 — September 2020
Dear customers, We're happy to bring you the September edition of our #CommunityDigest! Keep track of your subscription KPIs right from your smartphone: Last month, we enhanced our Android mobile app to help our customers get daily updates on their business health. We got to know from a lot of customers that this has made their job much more easier because they no longer have to keep a reminder to manually check on the previous day's revenue or activations. If you have not downloaded it yet, here'sCommunity Learning Series | Digest #4 - August 2020
Dear customers, We hope you're staying safe and healthy. I'm happy to bring you the fourth edition of our #CommunityDigest with some brand-new updates from us. 1. Daily Business Updates (for Android users) The Zoho Subscriptions Android app has got a cool new update: You can now get a push notification to your smartphone that lets you know how many activations and cancellations have taken place, and what's the net revenue for the previous day. The best part is, you can tell the app when exactly youCommunity Learning Series | Digest #3 - July 2020
Dear customers, We hope you're staying safe and healthy. We're glad to bring you the July edition of our #CommunityDigest. New community members can view our previous newsletters here. This time, we have two major updates and three interesting topics for you: 1. Zoho Subscriptions Developer Community Since the inception of Zoho Subscriptions, our team believed that the recurring billing platform we provide should be able to offer an extensive API library that empowers businesses to automate mostIntroducing: Community Learning Series | Digest #1 - May 2020
Dear customers, We hope you are staying safe and healthy. Helping businesses manage their customer subscriptions more efficiently has always been, and always will be, our goal at Zoho Subscriptions. We strongly believe this is possible if we grow together as a community and share what we know with each other. To nurture this shared learning experience, here is our brand-new Community Learning Series! Welcome to the first edition of our digest! Each edition of our community digest includes guides
New to Zoho TeamInbox?
Zoho TeamInbox Resources
Zoho CRM Plus Resources
Zoho Books Resources
Zoho Subscriptions Resources
Zoho Projects Resources
Zoho Sprints Resources
Qntrl Resources
Zoho Creator Resources
Zoho CRM Resources
Design. Discuss. Deliver.
Zoho Show Resources
Get Started. Write Away!
Writer is a powerful online word processor, designed for collaborative work.
Zoho CRM コンテンツ
-
オンラインヘルプ
-
Webセミナー
-
機能活用動画
-
よくある質問
-
Ebook
-
-
Zoho Campaigns
- Zoho サービスのWebセミナー
その他のサービス コンテンツ
Nederlandse Hulpbronnen
ご検討中の方
Recent Topics
What are the create bill API line item requiered fields
While the following documentation says that the line items array is requiered it doesn't say what if any files are requiered in the array. Does anyone know? API documentation: https://www.zoho.com/inventory/api/v1/bills/#create-a-bill I'm trying to addUsing IMAP configuration for shared email inboxes
Our customer service team utilizes shared email boxes to allow multiple people to view and handle incoming customer requests. For example, the customer sends an email to info@xxxx.com and multiple people can view it and handle the request. How can I configureWhen Does WorkDrive integrate with Books?
When Does WorkDrive integrate with Books?CRM x WorkDrive: File storage for new CRM signups is now powered by WorkDrive
Availability Editions: All DCs: All Release plan: Released for new signups in all DCs. It will be enabled for existing users in a phased manner in the upcoming months. Help documentation: Documents in Zoho CRM Manage folders in Documents tab Manage filesIntroducing Radio Buttons and Numeric Range Sliders in Zoho CRM
Release update: Currently out for CN, JP, AU and CA DCs (Free and standard editions). For other DCs, this will be released by mid-March. Hello everyone, We are pleased to share with you that Zoho CRM's Layout Editor now includes two new field formats—POP mailbox limits
If I am accessing a remote POP mail server using Zoho Mail is there a mailbox quota for the account or is it all related to my mail account storage limits?Warranty Service and Repair in Zoho FSM
Hi There, We are a retail store that sells products and also performs installations and repairs. Our field technicians handle this work. Some repairs are covered by manufacturers, who reimburse us for both parts and labour. In these cases, we performCreate Receipt of a Donation (not a sale)
We are a non-profit organization that receives general donations. How do I create a receipt of payment for the donor and categorize the payment as a Gift? I tried the method of creating an invoice; however that automatically created a "Sales" transactionZoho Sheet for Desktop
Does Zoho plans to develop a Desktop version of Sheet that installs on the computer like was done with Writer?WhatsApp phone number migration
Hi @Gowri V and @Pheranda Nongpiur, Thanks for implementing the promised enhancements to the integration between Zoho CRM and WhatsApp. The previous discussion has been locked, so I'm opening this new one. I am copying below a specificHow do I create an update to the Cost Price from landed costs?
Hi fellow Zoho Inventory battlers, I am new to Zoho inventory and was completely baffled to find that the cost price of products does not update when a new purchase order is received. The cost price is just made up numbers I start with when the productPrice Managment
I have been in discussions with Zoho for some time and not getting what I need. Maybe someone can help explain the logic behind this for me as I fail to understand. When creating an item, you input a sales rate and purchase rate. These rates are justActual vs Minimum
Hi all, I am sure I am not the only one having this need. We are implementing billing on a 30-minute increment, with a minimum of 30 minutes per ticket. My question is, is there a way to create a formula or function to track both the minimum bill vs theGenerate leads from instagram
hello i have question. If connect instagram using zoho social, it is possible to get lead from instagram? example if someone send me direct message or comment on my post and then they generate to leadKaizen #234 - Automating Deal Handoff with Zia Assistant API, Workflow, Deluge, and Widget in Zoho CRM
Hello all! Welcome back to a fresh Kaizen week. In this post, we will explore how to automate the deal handoff process in Zoho CRM using Zia Assistant API + Workflow + Deluge + Widgets. Here’s how the final output looks when a deal is reassigned 1. DealHow do you print a refund check to customer?
Maybe this is a dumb question, but how does anyone print a refund check to a customer? We cant find anywhere to either just print a check and pick a customer, or where to do so from a credit note.Ability to assign Invoice Ownership through Deluge in FSM
Hi, As part of our process, when a service appointment is completed, we automated the creation of the invoice based on a specific business logic using Deluge. When we do that, the "Owner" of the invoice in Zoho FSM is defaulted to the SuperAdmin. ThisAll new Address Field in Zoho CRM: maintain structured and accurate address inputs
Availability Update: 29 September 2025: It's currently available for all new sign-ups and for existing Zoho CRM orgs which are in the Professional edition exclusively for IN DC users. 2 March 2026: Available to users in all DCs except US and EU DC. LatestEnhancement to ICR’s field prompting: Preferred data extraction using advanced field prompting
Dear Customers, We hope you’re well A quick background Intelligent Character Recognition (ICR) comes as part of Zia’s optical recognition capability called Zia Vision. When we introduced it last April, the data extraction was training-based and was applicableSee a list of all records enrolled in a cadence?
I am looking for a way to see a list of all leads or contact currently enrolled in a cadence. I do not see any way to do this through the cadence UI.Limitation in chart of accounts
There is a limitation of 4000 accounts in chart of accounts Zoho needs to remove this limitHow do I change the account bank charges are charged to?
I want bank charges charged to my Credit Card Fees account. Is there a way to do this?Real signature in Zoho Expense PDF report ?
Hello ! Is there a way to put a real signature on the signature line when a PDF report is generated in Zoho Expense? Through Zoho Sign or another way? Can't seem to make it work.Copy paste settings
Hello all i have 2 organizations running in ZOHO books in one organization i have customised Tax rates, codes and customized templates instead of manually doing again in org 2 can i have some shortcut to copy paste or export and import??Custom TDS on Vendor Credits via API
Hi, We are using Zoho Books APIs for posting Bills and vendor credits. We are unable to post custom TDS amount posting vendor credits. Can you please share the API spec and Payload that need to be sent for Custom TDS for Vendor Credits."Unlink" Advance from Bill without Deleting the Payment Record
I am writing to highlight a significant workflow issue in Zoho Books (India Edition) regarding Vendor Advances and Bills. The Scenario: I recorded an Advance Payment to a vendor. I matched/reconciled this payment in the Banking module. I received a BillAdvance Payment Record Removed When Deleting Applied Credit from Bill
Hello, So while working with vendor advance payments, I noticed that removing the applied credit from a bill also removes the corresponding entry from the Payments Made section. What I did : Recorded an advance payment to a vendor through Payments Made.What is the best way to convert MSG file to Word format?
The best way to convert MSG files to Word format is by using a reliable and professional tool Aryson MSG file Converter. Manual methods are often time-consuming and may not preserve email formatting, attachments, or metadata accurately. In contrast, ArysonAddress Typeahead Extension for Zoho Books
I installed the Address Typeahead extension for zoho books but when I went to configure it, it said that that version was deprecated. Is there a newer version somewhere?How to create a new Batch and update Stock via Inventory?
Hi everyone, We are building an automation where a user enters batch details (Batch Number, Mfg Date, Expiry, and Quantity) into a Custom Module. I need this to trigger an API call to Zoho Inventory to: Create the new batch for the item. Increase theZoho Projects : Task should auto-update to 'In Progress' if timer started
Namaskaram. Right now, if a Task's timer is started, the Task stays in 'Not Started' status. One has to manually update it to 'In Progress'. From a #uxdesign standpoint, it is an unnecessarily two step process to start working on a task. It would be better that, if I start the timer on a task, it should automatically change to 'In Progress' status. Crafted with ❤️ Zoho Gurus | Zoho One Practice Team @ CubeYogi Zoho Authorised Partner | 7+ Yrs | 200+ Projects | 100+ CustomersInvoice template with sales tax totals
Hi everyone, I am trying to edit my invoice template so that only the total sales tax collected for my tax group shows up. Right now, under by sub total, each individual tax shows up and that takes up a lot of unnessary space, so I just want the oneZoho Delayed Posting & Loss of Article Thumbnails on BlueSky
Hello! I am wondering if anyone else has had the either of the following issues when posting to socials via Zoho and if there is a fix? 1. Post says it is scheduled or it is live when sent off via Zoho but it doesn't show up on socials till some timeConnection Not Secure (Certificate Mismatch) Error
Hi, Just a fyi, when you go to https://bigin.zohocloud.ca/bigin/Home you get a "Your Connection Is Not private" error. (Certificate mismatch to domain.) I get to that page after I have signed up and signed in as a customer and select the Access BiginRecording the Investment
Hello, - One Investor Invested to our company, So how do we record investment which we received in our bank in the Zoho books ? - How do we record if we provide shares to the investor in the Zoho books? ThanksExport Invoices to XML file
Namaste! ZOHO suite of Apps is awesome and we as Partner, would like to use and implement the app´s from the Financial suite like ZOHO Invoice, but, in Portugal, we can only use certified Invoice Software and for this reason, we need to develop/customize on top of ZOHO Invoice to create an XML file with specific information and after this, go to the government and certified the software. As soon as we have for example, ZOHO CRM integrated with ZOHO Invoice up and running, our business opportunitiesClient and Vendor portal at the same time
We have companies that serve both as clients and vendors and they are linked. However, we have a problem giving them access to the vendor/client portal. If they accept the invitation from the client portal, when we try to invite them to the vendor portalIntegrate Multiple ZohoBooks organization with zoho projects
We have successfully connected our Zoho Books with Zoho Projects for synronizing timesheet data. Our Business specialty is, that the staff of the Main company (A) is working on several projects, but the Clients are sometimes contracted and paying to aZOHO CRM Button Integration
Hi Team, I’m currently working with Zoho CRM along with a custom application where I fetch deal details from the CRM and use them based on my requirements for each deal. Now, I want to enhance this setup. I plan to create a button on the Deal Detail pageWays to calculate the difference form two years or months
Hi to everyone I have this request: I need to show the difference or variation from two periods (years or months) whether using a Pivot View or a graph, in this is case is better in a Pivot view. In the pivot view I will have the amount or results fromNext Page