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- Revenue Recognition
- Who it's for
- Usage billing
Usage billing
A usage-based product can use Usage Unit and Usage-Based values. Its invoice line carries quantity, unit price and service dates; its schedule carries Usage as the recognition method when the business policy calls for it. Finance compares the billed usage period with the amount recognized on the schedule. A linked invoice line lets the reviewer trace the billed quantity back to the customer schedule.
How Revenue Recognition is set up for you
Quantity
Billing Operations Manager compares an invoice line's quantity and unit price with the usage source.
Period
Revenue Accountant checks the schedule's Usage method and dates against the billed usage window.
Dispute
Collections Specialist follows an unpaid invoice while the disputed quantity is investigated.
A usage-based product can use Usage Unit and Usage-Based values. Its invoice line carries quantity, unit price and service dates; its schedule carries Usage as the recognition method when the business policy calls for it. Finance compares the billed usage period with the amount recognized on the schedule. A linked invoice line lets the reviewer trace the billed quantity back to the customer schedule.
Pilot one usage product and one customer. Record the source quantity, invoice line and linked schedule, then review their dates and amounts together. Agree how usage evidence is attached and how a disputed quantity is corrected before widening the billing cycle.
Use Draft Invoices Pending Send to inspect quantity and price before recording the invoice as Sent. Open Invoices then shows the amount still due; Billing Runs Open for Validation shows the Draft run containing the invoice. Billing Operations Manager checks linked invoice totals before advancing the run.
Agree which source establishes billable usage and who corrects a disputed quantity. Keep the source document link with the invoice or schedule evidence, and have Revenue Accountant review any change to the recognized amount. A payment marked Failed stays with Collections Specialist for follow-up.
Features to start with
Roles on the team
- Revenue Accountant
- Maintains customer revenue schedules and reviews recognized and deferred amounts.
- Billing Operations Manager
- Owns billing runs, invoice preparation and validation.
- Finance Approver
- Decides plan approvals and reviews documented billing and schedule decisions.
Set up Revenue Recognition your way.
Start free, then use Proto to change fields, steps and approvals before your team goes live.