We want to make billing as simple and fair as possible. That’s why we base your monthly bill on the Average Net Active Licenses in your enterprise account after the billing cut-off date, which is the 5th of each month.
What Does Average Net Active Licenses Mean?
Think of it like this: Each month, we look at how many users joined and how many left. The "average net active licenses" is the number of users you have after accounting for both new sign-ups and any cancellations.
Here’s how it works:
Counting New Users: We start by counting how many new users joined your account during the billing period.
Subtracting Users Who Leave: Next, we subtract the number of users who decided to leave.
Finding the Average: We look at this number over the course of the billing period, and that gives us the average net active licenses.
Why Use Average Net Active Licenses?
By using the average net active licenses, you only pay for the users you actually had during the month. This makes it fair since you won’t be charged for users who are no longer active.
How to compute for Average Net Active Licenses?
To help you understand how we calculate your bill, we look at the number of active licenses or users you have each day in a month.
Here’s a simple example:
Suppose in one month, your daily number of active licenses or users was as follows: Day 1: 1286, 1734, 835, 1481, 1097, 1345, 1576, 902, 1214, 1873, 1426, 1642, 1198, 1993, 1820, 867, 1458, 832, 1764, 1550, 1350, 912, 1723, 1667, 831, 1886, 1012, 1272, 1349, Day 30: 1945.
To find the Average Net Active Licenses of your active users for the month, we follow these steps:
Add Everything Up: First, we add all the daily active users together. In this example, that total is 41,840.
Divide by the Number of Days: Then, we divide that total by the number of days in the month, which is 30.
Get Your Average: This calculation gives us an Average Net Active Licenses of 1,395.
This number: 1,395, is what we use to create your billing invoice for that month.
If you have any questions about how this works or need further clarification, feel free to reach out. We’re here to help!