> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sequencehq.com/llms.txt
> Use this file to discover all available pages before exploring further.

# On-demand billing

> Bill customers for usage on-demand

Instead of monthly usage-based billing, bill customers on demand for usage. On-demand billing is ideal for businesses that need to bill customers for discrete events, such as batch orders or one-time purchases.

### Bill customers on-demand for discrete events

<Icon icon="check" iconType="solid" /> Instant invoice generation when usage events occur<br />
<Icon icon="check" iconType="solid" /> Cumulative usage tracking across multiple events <br />
<Icon icon="check" iconType="solid" /> Support for tiered pricing based on historical usage <br />

<Check>Invoices are generated **daily** by default. Hourly billing can be enabled to generate invoices at the top of each hour (UTC). For example, submit usage data at 1:30pm UTC and the invoice will be generated at 2:00pm UTC.</Check>

### Getting started with on-demand billing

1. Create a usage metric.
2. Configure a new product and price with a usage-based pricing model.
3. Set the billing frequency to `on-demand`.
4. Create and start a billing schedule including the new price.
5. Submit an event for the customer and metric used in the price.
6. An invoice will be generated at the top of the next hour (or next day, depending on your configuration).

<Note> On-demand billing is only compatible with usage-based pricing models. Usage is accumulated throughout the billing schedule's phase. For tiered pricing, each new event considers the total historical usage to determine the applicable tier rate.</Note>

### Invoice timing

By default, invoices are generated daily, consolidating all usage events from the previous day.

Hourly billing can be enabled to generate invoices at the top of each hour (UTC). For example, submit usage data at 1:30pm UTC and the invoice will be generated at 2:00pm UTC.

### Example Use Cases

* **Batch order processing**: Bill customers when they place orders for physical goods
* **Usage-based services**: Bill customers immediately after service consumption

### Frequently asked questions

<AccordionGroup>
  <Accordion title="How is usage calculated across multiple events?">
    Usage is cumulative across all events in the phase. For tiered pricing, each new event considers the total historical usage to determine the applicable tier.
  </Accordion>

  <Accordion title="When exactly are invoices generated?">
    By default, invoices are generated once per day for all events from the previous day. Hourly billing can be enabled to generate invoices at the top of each hour (UTC) for events submitted during the previous hour.
  </Accordion>

  <Accordion title="Can I use this with fixed pricing models?">
    On-demand billing is currently only available for usage-based prices. It cannot be used with fixed pricing models.
  </Accordion>
</AccordionGroup>