Billing Activation Rules

Last verified with: 10.8.6.0

Overview #

Billing Activation allows a package to begin billing only after a defined activation rule has been met.

This is useful when a business wants to delay charges until a customer has either:

• used a service for the first time or reached a usage threshold
• reached the end of a trial or onboarding period
• met whichever comes first between a time rule and a usage rule

In LogiSense Billing, Billing Activation is configured at the package level and is driven by a Billing Activation service plus a Billing Activation bucket. Together, these settings determine when the package becomes billable.

Why Businesses Use Billing Activation #

Billing Activation is commonly used when commercial terms should start only after the customer has actually started using the product, or after a limited trial window ends.

Typical use cases include:

• connected-device onboarding and test periods
• bill-on-first-use offers
• delayed subscription start after implementation or go-live
• controlled free-trial models with time and usage limits

How Billing Activation Works #

At a high level, the process works like this:

1. A package is configured with a Billing Activation service.
2. That service is linked to a Billing Activation bucket.
3. The bucket defines the activation rule using:
   • a time limit
   • a usage threshold
   • or both
4. When the package is assigned to an account, billing does not begin immediately.
5. The package becomes billable when the activation rule is achieved.

If both a time limit and a usage threshold are configured, the package activates when the first condition is met.

What Happens When a Package Activates #

Before activation, the package is present on the account but standard billable charges are deferred.

Once activation occurs:

• recurring charges begin from the activated billing period according to the package’s billing setup
• non-recurring charges can be created once the package becomes billable
• usage billing begins once the package is active
• transition-based charges can also honor the activation boundary

If activation happens in the middle of a billing cycle, proration can apply based on the package configuration and billing dates.

Supported Activation Patterns #

Time-Based Activation #

The package becomes billable after a defined amount of time has passed from the account package effective date.

Examples:

• activate after 7 days
• activate after 1 month
• activate after 14 days of onboarding

This is useful when the business wants to provide a fixed evaluation or implementation window regardless of usage.

Usage-Based Activation #

The package becomes billable after the customer reaches a defined usage threshold.

Examples:

• activate after 10 MB of data
• activate after the first API transactions
• activate after a first batch of events, messages, or requests

This is useful for bill-on-first-use or controlled proof-of-value models.

Time-or-Usage Activation #

The package becomes billable when either the time condition or the usage condition is reached first.

Examples:

• activate after 14 days or 500 API calls, whichever comes first
• activate after 30 days or 1 GB of data, whichever comes first

This is useful when the business wants to cap both trial duration and trial consumption.

Configuration Overview #

Billing Activation uses three main configuration elements:

1. Billing Activation Bucket #

The Billing Activation bucket defines the activation rule.

It can use:

• an expiry period
• a usage threshold
• or both

For Billing Activation buckets:

• the bucket must be non-recurring
• the bucket must include a time rule, a usage threshold, or both
• the bucket can have only one tier
• the tier flat charge must be zero
• overage rate plans are not used
• usage volume tiers are not supported

2. Billing Activation Service #

The Billing Activation service is the trigger mechanism for the package.

This service:

• must be categorized as a Billing Activation service
• must be based on a non-recurring service type
• must use a Billing Activation bucket

Each package can have only one Billing Activation service.

3. Package Configuration #

The package becomes a Billing Activation package when the Billing Activation service is assigned to it.

When the package is added to an account, the activation logic starts tracking from the account package effective date and from any qualifying usage that contributes to the Billing Activation bucket.

Billing Timeline Behavior #

The most important concept for business users is that the package effective date and the billing start date may be different.

The effective date controls when the package is present on the account.

The activation date controls when normal billing begins.

This distinction allows a business to:

• provision service immediately
• let the customer test or onboard
• start commercial billing only when the agreed trigger is reached

Example: Telco Device Activation #

A mobile or IoT provider ships connected devices to customers before those devices are fully deployed in the field.

The provider wants:

• the device to be provisioned right away
• the customer to have a short test period
• commercial charges to begin only after real use starts or the trial window expires

Configuration example:

• package effective date: January 1
• activation rule: 7 days or 25 MB of data, whichever comes first
• recurring device plan charge: starts only after activation

How it works:

• if the customer starts sending data on January 3 and reaches 25 MB on January 4, billing activation occurs on January 4
• if the customer never reaches 25 MB, billing activation occurs on January 8
• recurring and eligible one-time charges begin from the activated billing point, not from January 1

This approach supports:

• SIM testing
• field installation windows
• warehouse-to-deployment lag
• fair billing for devices that were provisioned but not yet used

Example: SaaS Platform Onboarding #

A SaaS provider sells a package that includes platform access, API usage, and a monthly subscription fee.

The provider wants:

• immediate provisioning for implementation
• a limited onboarding period
• subscription billing to begin when the customer goes live

Configuration example:

• package effective date: April 1
• activation rule: 14 days or 1,000 API calls, whichever comes first
• monthly subscription fee begins after activation

How it works:

• if the customer completes onboarding quickly and reaches 1,000 API calls on April 5, the package activates on April 5
• if usage remains low, the package activates on April 15 because the time limit is reached
• recurring subscription charges begin from the activated billing period, and proration may apply if activation occurs mid-cycle

This approach supports:

• implementation periods
• sandbox-to-production transitions
• bill-on-go-live commercial models
• controlled free trials with a clear commercial start

Business Benefits #

Billing Activation helps organizations:

• align charges with actual customer adoption
• reduce disputes about charging before first use
• support trial, onboarding, and go-live business models
• automate activation timing instead of managing it manually
• create consistent billing behavior across recurring, usage, and other eligible charge types

Important Considerations #

• Billing Activation delays when a package becomes billable; it does not prevent the package from being provisioned on the account.
• If a usage threshold is used, activation happens only when qualifying usage is processed.
• If a time rule is used, activation happens when the configured time limit is reached from the package effective date.
• If both are used, the earlier of the two determines activation.
• Mid-cycle activation can lead to prorated recurring charges depending on package settings.
• Billing Activation is best used when the commercial start date should be tied to customer readiness or first meaningful use.

When to Use Billing Activation #

Billing Activation is a strong fit when:

• the customer needs a test or onboarding period before billing begins
• billing should start on first use rather than on order date
• the commercial start date depends on customer readiness
• the business wants a trial controlled by time, usage, or both
• operations teams want activation to happen automatically instead of through manual billing changes

Summary #

Billing Activation in LogiSense Billing gives businesses a controlled way to separate service provisioning from commercial billing start.

By combining a Billing Activation service with a Billing Activation bucket, organizations can support time-based activation, usage-based activation, or whichever-comes-first rules. This makes it possible to model real-world telco, SaaS, and connected-product onboarding scenarios while keeping billing behavior automated and consistent.