Calendar Billing

Calendar Billing is a billing method in which services are billed and invoices are generated on a fixed calendar date (as opposed to Anniversary Billing, which bills on the recurring anniversary of the Billing Start Date).

For example, if billing is set to the 1st of the month, all services are invoiced on May 1, June 1, and so on, regardless of their individual start dates. Services that start mid-cycle are typically prorated until the next billing date.

Advantages

• Aligns all billing to a single cycle, simplifying invoicing and reporting
• Easier reconciliation with accounting and financial periods
• Commonly used in B2B environments with consolidated invoices

Considerations

• Requires proration for services that start or change mid-cycle
• Can create billing spikes on specific dates (e.g., month-end processing)