Seat-based billing and true-up
Per-user pricing that reconciles the billed quantity when seats are added or removed during a subscription term.
See it
What it is
Seat-based billing prices a subscription by its billable user or license count. A true-up compares the contracted or previously billed quantity with actual seats later, then charges or credits the difference according to the contract.
Use immediate proration when every seat change should affect billing now, or a periodic true-up when sales-led contracts reconcile monthly, quarterly, or at renewal. Define whether increases, decreases, or both change the bill, and which count becomes the next baseline.
Gotcha: 'seat' needs a precise rule. Invited users, suspended accounts, guests, service accounts, and seats removed before the snapshot can all cause arguments. Keep timestamped seat events or snapshots and show the count, period, rate, and calculation on the invoice.
Ask AI for it
Implement seat-based billing with the Stripe Billing Subscriptions API and a configurable true-up policy. Define which user states count as billable seats, record each change as a timestamped event, and either update the Stripe subscription-item quantity with proration or reconcile at a monthly, quarterly, or renewal snapshot. Calculate the difference from the billed baseline, create an Invoice Item with quantity, rate, and period, and update the next baseline without rewriting history.