> For the complete documentation index, see [llms.txt](https://docs.received.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.received.ai/subscription-billing/the-subscription-billing-process/auto-charge-payments.md).

# Auto-Charge Payments

## Step 1: Track Usage (for usage-based products)

In the event that a subscription plan includes a **usage-based product**, Received's **usage API** automatically **tracks and calculates usage rates** for each subscriber per billing cycle.

This API is provided by Received, and **embedded into your software**, enabling automatic usage tracking.\
\
Our embeddable API looks like this:

<pre><code><strong>usage_event = {
</strong>  "timestamp": "2024-02-05T08:55:32.160Z",
  "customer_ref": "4096966d-5c1c-4e18-8b47-6a365e3c16ea",
  "customer_name": "ACME",
  "usage_product_ref": "bb50da07-c686-4688-8550-66305e17aab0",
  "usage_product_name": "Units",
  "quantity": 10,
  "additional_report_data": {
    "note": "User-specific note"
  },
  "validations": {
    "currency": "USD",
    "entity_ref": "55899733-32a0-4912-9d2e-a5b0f04dcdb6"
  }
}

event_report_resp = requests.post('https://api.received.ai/api/usage/event', headers=headers, data=json.dumps(usage_event))
</code></pre>

Once this API is embedded, usage is tracked and collected by Received. When it's time to charge customers, Received's **internal API collects the relevant data** and calculates the total due for each specific subscription.

Our API looks like this:

```
// POST/api/usage/event
```

#### Request Body

Example Value

```
{
  "timestamp": "2024-02-05T09:02:27.279Z",
  "customer_ref": "b4fe1e43-321f-479c-aee7-c11d73616ff2",
  "customer_name": "ACME",
  "usage_product_ref": "9db3fbc3-5e77-43c8-828f-bc2b69cbc9f3",
  "usage_product_name": "Units",
  "quantity": 10,
  "additional_report_data": {
    "note": "User-specific note"
  },
  "validations": {
    "currency": "USD",
    "entity_ref": "d78bf43b-e76a-4a70-8f56-d3dfcea0dffe"
  }
}
```

#### Responses

Example Value

```
{
  "event_ref": "d1d3416c-0b33-479e-a42f-dbb74effd290",
  "related_document_ref": "fffb529d-e5ad-4d87-b1e5-fa5085a675b5",
  "related_document_numbers": "US-INV-1234",
  "related_parent_document_ref": "cb88774f-fbdd-42ef-b9eb-822e6c581ee1",
  "related_parent_document_numbers": "US-INV-12345"
}
```

## Step 2: Auto-Charge Customers&#x20;

Received **automatically charges active subscription customers** according to their selected plan and usage rates (where applicable), and sends **payment confirmations.**\
\
Upon payment, Received's system automatically matches auto-charged payments with outstanding balances for **seamless reconciliation** and automatically **recognizes revenue** according to **ASC-606 and IFRS-15** compliance.

<figure><img src="/files/S6XiKD5UYmnXPLhnPij9" alt=""><figcaption></figcaption></figure>