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Understanding Billing with Minimum Billable User Count

Note: Minimum billable user count when enabled can be viewed via Settings > Billing. To grant access to the Billing page, the owner can do it via Settings / Company Settings > Billing > Who can access billing?

TL;DR

  • Charge the account based on the minimum billable user count when a minimum applies, even if fewer users are active.

  • Bill all active users when the active user count is higher than the minimum.

  • Exclude archived users from the paid user count, but do not use archiving to bypass a minimum billing commitment.

  • Keep in mind that removed users remain billable until the current billing cycle ends.


How minimum billable user count works

Use the minimum billable user count as the baseline for billing when the subscription includes a minimum commitment.

If the account has fewer active users than the minimum, bill the account for the minimum number of users.

If the account has more active users than the minimum, bill the account for the full number of active users instead. Active users listed under Settings / User Settings are considered billable.

This applies to both monthly and annual billing contexts in this article.

 

Billing examples

Example 1: Active users below the minimum

If the account has a minimum billable user count of 12 and only eight active users, bill the account for 12 users.

 

Example 2: Active users equal to the minimum

If the account has a minimum billable user count of one and there is one active user, bill the account for one user.

 

Example 3: Active users above the minimum

If the account has a minimum billable user count of four and there are six active users, bill the account for six users because the active user count is higher than the minimum.

 

How archived or removed users affect billing

  • Archive users when they no longer need access. Archived users are not included in the paid user count.

  • However, do not assume that archiving users will reduce the invoice below a required minimum billable user count. If a minimum commitment applies, charges remain based on that minimum even when fewer users are active.

  • Remove users before the next renewal if the goal is to reduce future billing where no minimum commitment applies. Keep in mind that removed users remain billable for the current billing cycle.

 

Sample billing calculation

Use the following formula:

Billed users = the higher of:

    • minimum billable user count, or

    • current active billable users

Example:

If the price is $10 per user per month, the minimum billable user count is four, and only two users are active, the bill is calculated for four users:

  1. 4 × $10 = $40 per month

If six users are active instead, the bill is calculated for six users:

  1. 6 × $10 = $60 per month

Note: The $10 figure above is an illustrative example for calculation only.

 

Where to review billing access

  • Review or update billing access in Settings / Company Settings > Billing > Who can access billing?

  • Grant billing access only when needed. The selected user will then see the Billing option in Settings.

 

💡Tips: 

  • Calculate charges using the minimum billable user count whenever the subscription includes a minimum commitment.

  • Archive unused users to exclude them from the paid user count, but do not expect archiving to override a minimum billing requirement.

  • Review billing access and user counts regularly to keep charges aligned with the account setup.

 

 

 

 

Should there be any inconsistencies or concerns regarding the article, contact billing@timedoctor.com for prompt assistance.