Use case
Usage-based billing accounting with Lucius
Definition
Usage-based billing accounting is the practice of metering consumption, rating it against contract pricing, invoicing the result, and recognising the revenue correctly — for consumption, seat-based, and hybrid pricing models.
Map your current workflow
Tell us how this process runs today and we'll show how Lucius keeps contracts, cash, and the ledger connected.
The problem
- Usage events live in product systems, pricing lives in contracts, and billing lives in a processor — finance stitches them together to invoice and recognise.
- Tiered pricing, commitments, overages, and true-ups make both invoicing and revenue recognition hard to get right.
- Recognised revenue and billed usage drift apart, so margins and ARR are estimated rather than known.
How Lucius solves it
- Lucius rates usage against contract pricing, generates invoices, and posts revenue on the correct schedule from one maintained state.
- Commitments, overages, and true-ups are computed against contract terms and post to the stateful ledger with a full trail.
- Billed usage, recognised revenue, and receivables stay aligned, so usage-based margins and ARR are accurate in real time.
Workflow
- 1
Ingest usage events
Metered usage flows into Lucius and links to the governing contract.
- 2
Rate against pricing
Usage is rated against tiers, commitments, and overage rules.
- 3
Generate invoices
Rated usage produces scheduled invoices on the stateful ledger.
- 4
Recognise revenue
Revenue recognises on the correct schedule tied to the contract.
- 5
Reconcile and report
Billed usage, revenue, and AR stay aligned for accurate margins.
Example data flow
| From | To | What happens |
|---|---|---|
| Usage event | Rated charge | Lucius rates metered usage against contract tiers and commitments. |
| Rated charge | Invoice | Rated usage produces scheduled invoices linked to the contract. |
| Invoice | Recognised revenue | Revenue recognises on schedule and ties back to billed usage. |
Frequently asked questions
Does Lucius support usage-based and hybrid pricing?
Yes. Lucius rates consumption, seat-based, and hybrid models against contract tiers, commitments, and overages, then invoices and recognises from one maintained state.
How does Lucius handle commitments and overages?
Commitments draw down against usage and overages bill at the contracted rate, both computed against contract terms and posted to the stateful ledger.
Can Lucius recognise revenue for metered usage?
Yes. Usage true-ups recognise on the correct schedule and tie back to the contract that governs them.
Does billed usage stay aligned with revenue?
Yes. Billed usage, recognised revenue, and receivables share the same ledger, so margins and ARR are accurate in real time.
Map your current workflow
Tell us how this process runs today and we'll show how Lucius keeps contracts, cash, and the ledger connected.
Map your workflowOr explore the stateful ledger — Lucius's financial system of record.