A usage component in Zoho Billing is a named, measurable unit of consumption that forms the basis of usage-based or metered billing. It defines what is being tracked (for example, API calls, GB of storage, or active users), the price per unit, and the billing model (metered, volume, tiered, etc.). Usage components are attached to subscription plans and receive usage data through the Zoho Billing API or manual import.
When adding a usage component to a plan, you specify the unit name, the pricing model, the rate or tier structure, and whether billing is in arrears (at period end) or in advance. You also configure whether there is a free tier (a baseline quantity not charged), a minimum charge, or a spending cap. These settings give flexibility to implement virtually any usage-based pricing structure that your business model requires.
A single Zoho Billing plan can include multiple usage components, each tracking a different dimension of consumption. For example, a cloud platform might track both storage (INR 5 per GB per month) and bandwidth (INR 2 per GB transferred) as separate components. The invoice at period end shows each component’s usage and charge as separate line items, giving customers full visibility into how their bill was calculated.
Usage data is submitted to Zoho Billing via the Subscriptions API using the Usage Reporting endpoint. Your application makes an API call each time a billable event occurs, passing the customer ID, component ID, and usage quantity. Alternatively, you can batch-upload usage data periodically. Real-time reporting gives the most accurate billing, while batch reporting is simpler to implement.
Yes. Zoho Billing supports hybrid components where a base fee is charged regardless of usage (a fixed component) alongside a variable usage component. This is common in “base + overage” pricing structures where the customer pays a fixed monthly fee for a set number of included units and then pays per additional unit consumed beyond the included allowance.
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