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Late Usage

Zuora

Late Usage

This topic walks you through the Late Usage feature. For more information about how Zuora Usage works in general, see Usage.

With Late Usage, you can upload usage records after service periods are billed, or even after the accounting periods that contain the billed service periods are closed. This feature enables you to bill late usage without changing closed accounting periods.

The quantity and amount of a late usage record will be added to the billed service period that the Start Date Time of the usage record falls into. Zuora will recalculate the total quantity and amount of the billed service period to which the late usage record is uploaded. 

The late usage records will be listed as unbilled usage of the closed service period and billed in the next billing cycle. The amount of the late usage records is the amount of the updated total amount deducting the existing total amount that has already been billed. The late usage record is listed as an invoice item on the invoice generated by the bill run.

How does Late Usage work?

Suppose a subscription contains a monthly billed charge with the following volume pricing plan:
 

Tier

From

To

List Price

Price Format

1

1

100

10.00

Per Unit

2

101

200

9.00

Per Unit

3

201

300

8.00

Per Unit

There are two service periods: 2022-01-01 to 2022-01-31, 2022-02-01 to 2022-02-28.

The first service period is already billed and the total usage quantity is 90 and the total amount is 900. 

And then, a late usage with a quantity of 20 is added to the first billed service period. This late usage record will be added to the total usage of the billed service period. The total usage of the billed period will then be 110 and the total amount will be 990.

In the meantime, under the Unbilled Usage section of the subscription, there will be a new usage record item with the quantity 20 and amount of 90. This unbilled usage record will be billed in the next bill run.

The following table lists the details of the usage and invoice items.

 

Quantity

Price

Amount

Original total usage of 2022-01-01 to 2022-01-31

90

10

900 (90*10)

Late Usage record

20

9

180 (20*9)

Updated total usage of 2022-01-01 to 2022-01-31

110

9

990 (110*9)

Unbilled usage item added to 2022-02-01 to 2022-02-28

20

N/A

90 (990-900)

Invoice Item that will be generated in the next Bill Run

20

N/A

90 (990-900)

Upload late usage records

Before using the Late Usage feature, ensure that the following prerequisites are met:

  • Unbilled Usage is enabled for your tenant.
  • If you use Zuora Finance, you must turn on the Allow usage to be created in a closed Account Period accounting rule to enable uploading usage records to closed accounting periods.

The procedure of uploading a late usage record is the same as uploading a usage record to an unbilled service period. For detailed instructions, see Add usage data.

Note that the Start Date Time of the late usage record should fall into the billed service period.

Notes and Limitations

  1. If you use Zuora Finance, you must turn on the Allow usage to be created in a closed Account Period accounting rule to enable uploading usage records to closed accounting periods. If you don’t use Zuora Finance, you can add late usage without turning on this rule.
  2. Late usage records for the last service periods cannot be added, unless the subscription is renewed.
  3. Taxes of the late usage records are calculated in the next billing cycle.