How is usage data computed?

Introduction 

Usage data can be ingested into Tabs and calculated based on the rate outlined in the contract. When Tabs processes contract, any products in the contract that are listed as a variable rate based on usage are identified. Instead of this product having a total amount associated, the rate is assigned. Then, when usage data is readily available and ingested by Tabs, the total charges are calculated and populated directly onto the applicable invoices.

The baseline calculation for all usage computations is:

Price x Quantity = Amount

Price is usually outlined in the contract, and stored in Tabs with the product.

Quantity is variable and usually tracked over time at a specific cadence or schedule. This data can be entered into Tabs either manually or via CSV upload.

Once Quantity data is in Tabs for a specific service period, the calculation is triggered and the invoice is automatically updated with the Amount on the invoice(s) associated with that service period.

There are multiple kinds of usage models that might have variation of this basic formula, which are detailed in this article.

To learn about how to get your usage data into Tabs, refer to this article for how to upload usage data.