From Raw Usage Data
To Accurate Invoices.
LedgerUp turns metered usage into correct invoices — rated against each customer’s contracted pricing, reconciled against entitlements, and synced to your ERP with revenue treatment intact.
Spreadsheet rating vs automated rating
Most usage billing pain isn’t the metering — it’s the monthly ritual of turning usage exports into invoices that match each contract.
Without automation
- Finance exports usage data and rates it by hand in a spreadsheet, monthly
- Each customer’s tiers, minimums, and overage rates applied from memory
- Under-billing invisible — nobody reconciles consumption against contracts
- Invoices go out late because rating takes days
- Customers dispute charges because invoices don’t show the underlying usage
With LedgerUp
- Usage data rated automatically against each contract’s actual pricing
- Tiers, committed minimums, true-ups, and overages computed per the agreement
- Consumption reconciled against entitlements — under-billing surfaced, not absorbed
- Metered invoices generated on cycle, every cycle
- Usage detail attached to every invoice line — disputes answered with data
How usage billing automation works
From metered events to collected revenue.
Usage data flows in
Metered usage arrives from your product’s usage pipeline or billing meter — Stripe meters, a usage table, or API events. Ari doesn’t replace your metering; it consumes it.
Rated against the contract, not a rate card
Each customer’s usage is priced per their actual agreement — negotiated tiers, committed minimums, volume discounts, overage rates — which Ari extracted from the signed contract at signature.
Reconciled before it bills
Consumption is checked against entitlements and commitments: usage above committed volume bills as overage, usage below minimum bills the minimum, and anything anomalous — a 10x spike, a meter gap — flags for review instead of billing wrong.
Invoiced with the evidence attached
Invoices generate on the billing cycle with usage detail per line, post to Stripe, QuickBooks, or NetSuite, and enter the standard collections workflow. When customers question a charge, the usage breakdown answers it.
Works with your existing stack
LedgerUp connects to the tools you already use — no migration required.
Usage billing use cases
How usage-based companies bill with LedgerUp.
Hybrid Subscription + Metered Contracts
A platform fee on the 1st, usage in arrears, an annual commit trued-up quarterly — Ari runs all three components of the same contract on their own schedules.
A $5K/month platform fee bills monthly; API usage above the 1M-call commit bills as overage at the contracted $0.002/call.
Under-Billing Detection
The most expensive usage-billing failure is silent: consumption that never gets invoiced. Reconciling metered usage against billed usage every cycle surfaces the gap.
A customer’s new workspace wasn’t mapped to their billing account; reconciliation catches 3 months of unbilled usage worth $18K.
Usage Disputes Answered With Data
Usage invoices generate the most billing questions. Because every invoice line links to its underlying usage, Ari answers most consumption questions directly — with finance only seeing genuine discrepancies.
A customer questions an overage line; Ari replies with the daily usage breakdown for the period, and the invoice gets paid.
Usage billing connects to revenue recognition
Metered billing done right feeds compliant revenue treatment downstream.
Usage billing product
The full usage-based billing capability — metering, rating, reconciliation.
See usage billingUsage-based revenue recognition
How usage revenue gets recognized compliantly under ASC 606.
See usage rev recPrevent under-billing
The reconciliation practices that stop usage revenue from leaking.
See under-billing preventionUsage billing FAQ
Common questions about automating usage-based billing with LedgerUp.
Does LedgerUp do the metering itself?
No — your product’s instrumentation or billing meter (Stripe meters, a usage events table, your own pipeline) remains the source of usage truth. LedgerUp consumes that data and owns everything after it: rating, reconciliation, invoicing, and collections.
How does per-contract pricing work?
Ari extracts each customer’s pricing terms from their signed contract — tiers, committed minimums, volume discounts, overage rates, true-up cadence — and rates their usage against those terms. Negotiated exceptions are honored per account, not flattened onto a standard rate card.
What catches under-billing?
Every cycle, metered consumption is reconciled against what was actually invoiced, per account. Gaps — an unmapped workspace, a meter outage, a missed true-up — surface as exceptions with the quantified difference, instead of leaking silently.
How are anomalies handled — a 10x usage spike, a meter gap?
Configurable guardrails hold anomalous invoices for review: usage outside historical bands, sudden zeros from active customers, or charges above a threshold flag to finance in Slack before billing. Wrong invoices are more expensive than late ones.
How does this connect to ASC 606 revenue recognition?
Usage revenue is variable consideration — billing it correctly is step one of recognizing it correctly. LedgerUp keeps the billed-usage record reconciled and auditable, which is the foundation the revenue schedule builds on. See the usage-based revenue recognition page for the full treatment.
Which billing systems does it post to?
Stripe, QuickBooks, NetSuite, Sage Intacct, and Xero — with usage detail preserved on invoice lines, so the ledger and the customer see the same numbers.