NOTE: This article applies to the latest versions of the Cloud Services Agreement (v2) and the Software License Agreement (v1). For CSA v1, check out this article instead.

Some companies charge their customers using metered or usage based billing, where the monthly or annual cost is not based on a fixed number but instead based on usage from the previous month.

Common Paper can support these use cases with Automated Billing with just a few extra steps of configuration.

This article covers all you need to know to use metered billing with your customers.

In order to successfully create a subscription in Stripe using Automated Billing with metered items you’ll need to connect your Stripe account via the Integrations page if you haven’t already. Read more here.

Follow the normal process to create a new CSA from a template. Be sure to check the Include Billing Workflow checkbox at the bottom of the form. You can read more about the different options available for invoicing, etc. here.

There are two usage based pricing models available:

To add either or both, select the corresponding Pricing Model from the dropdown and fill in the relevant details.

NOTE: You'll be able to choose the corresponding Stripe product in the next screen.

You can add multiple metered items and/or include fixed cost items or discounts as well. The total will reflect these items and discounts, while the metered items will not be included in the total (as they haven't occurred yet).

Once you are satisfied with your agreement, click the Next: verify your fees button.

On this page, you'll be able to associate a Stripe product with each of the line items, or create one if need be. The system will automatically try to match an existing usage based Stripe price for that product, otherwise it'll create one.

After you've made your selections, go ahead and Send the agreement.

Once your recipient signs the agreement, they will be prompted for billing information and the invoice will be created based on the Stripe settings you configured when sending the agreement.

NOTE: The first invoice will list the metered items, but with a quantity of 0. The next invoice will include any usage from the first billing period.

Here's an example invoice:

A quick note when only using metered items and automated billing - after your customer provides their billing info, an invoice will be created immediately, but it will be for $0 and already marked as paid. This is because there's no usage for the first invoice - subsequent invoices will have the cost calculated based on the usage you report.

It's important to note that while our Automated Billing will create the subscription and invoices for you in Stripe, it's your responsibility to report usage to Stripe over time to ensure that your customer is accurately charged.

Please refer to the Stripe documentation for how to report usage.