Redwood: Manage Usage Entitlements and Usage Events

You can define, track, and bill how customers consume services within a subscription by managing usage entitlements (what they’re allowed to use) and usage events (what they actually consume). This ensures accurate usage-based billing and transparent delivery of value-added services.

Key concepts

• Entitlements: Define what a customer can consume such as units, hours, calls, data, amount etc. and the limits per term. Plans can be allowance-based, estimate-based, commitment-based or volume-based
• Usage events: Records of actual consumption. Events can deduct from balances (draw down allowances) or be rated to update billable charges when they exceed, or priced per use.
• Balance Management & rating models: Entitlement Plans support pooled usage for allowances across lines so you can model overage pricing. You can define, track, and bill how customers consume services within a subscription by managing usage entitlements (what they’re allowed to use) and usage events (what they actually consume). This ensures accurate usage-based billing and transparent delivery of value-added services.

What this enables

• Define entitlement plans and attach them to products to govern eligibility and included quantities and amounts.
• Track consumption against allowances with clear remaining balances.
• Capture usage via UI, import or integration; rate and automatically post to billing with auditability.

From the Entitlement Plan, you can open 'Manage Balance Register' to view the product’s Balance Register. Here, you track the entitlement over time, such as how much was allowed, how much was consumed, and what remains for the selected cycle or date range. The register functions as a running ledger driven by posted usage, such as Quantity and Amount by Allotted, Consumed, and Remaining.

Usage Events:

Usage events record each instance of consumption (e.g., units, hours, data, amount) against a subscription product. You can capture multiple events in the same billing period, via the UI, import or integrations, with each event carrying the date/time, quantity, and UOM. After capture, events are processed (validated and rated) and then posted to bill lines automatically; if processing fails, errors are shown on the event. When an entitlement applies, validated events draw down balances; otherwise, they are rated per your rating model (allowances, estimate, commitment & volume). Posted usage events land in the correct billing cycle, and the Balance Register updates the remaining balance. You can review and correct events before rating.

With entitlements tied to products and events flowing through validation and rating, customers are billed fairly for what they use, balances stay transparent, and your usage-based offerings are delivered and monetized consistently.

1. End-to-end visibility: See what each customer is entitled to and how much they’ve used, reducing disputes and back-and-forth.
2. Accurate billing: Charge based on actual consumption within entitlement rules, cutting revenue leakage and credit/rebill cycles.
3. Growth and retention: Identify high usage and nearing-limit signals to propose upgrades, top-ups, or plan changes.
4. Planning and forecasts: Use remaining balances and consumption trends to manage service capacity planning.

Steps to Enable

You don't need to do anything to enable this feature.

Key Resources

See how to Set up rate charges and usage plans

Refer to the ‘Steps to Enable’ section in the ‘Redwood: Create and Manage Subscription and Subscription Products’ documentation to enable the Redwood experience for Subscription Management.