Glossary
Billing period
A billing period is the recurring interval over which usage is accumulated and charges are calculated, and it determines the date an invoice is generated.
Also called billing cycle.
Periods can be anchored to a calendar month or to each customer's subscription start date. Calendar anchoring makes the close simpler; anniversary anchoring spreads invoicing load and matches contract dates.
Mismatched periods are a common source of disputes, particularly when a usage charge and a subscription fee on the same invoice cover different spans of time.
Related terms