Calendar Billing is a billing method that involves charging customers for the usage of a service or application for a specified period (typically a month or a year) starting from the subscription or renewal date of the subscription.
In the context of Software as a Service (SaaS) and online services, Calendar Billing is often used to bill customers who subscribe to a monthly or annual subscription. Customers are billed on the same date each month or year, depending on the chosen subscription period.
Calendar Billing can be a convenient billing method for both businesses and customers as it allows for upfront planning and forecasting of subscription costs. However, it can also result in additional costs for customers who are unable to utilize the service or application for the entire subscription period.
Here are some advantages of Calendar Billing:
- Simple Subscription: At the time of subscription, no prorated billing calculation is performed. The customer pays for a full period (1 month, 1 year, etc.).
- Easy Management: Calendar Billing allows for billing customers on the same date each month or year, which can simplify billing and accounting management.