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      Understand Procure and Payables Spend

      This article explains how Procure and Payables Spend are calculated within a usage-based subscription model

      Table of Contents

      1. How is Procure Spend Calculated
      2. How is Payables Spend Calculated
      3. View your Spend Tier and Metrics
      4. View Your Spend Period Tier Breakdown
      5. Notifications
      6. Upgrade Subscription and Spend Tiers

      Available with usage based subscriptions.

      For customers using a usage based subscription model, Procure and Payables Spend is the dollar amount associated with a transaction that count towards your spend tier. This article outlines billing information related to Procure and Payables Spend.

      How is Procure Spend Calculated

      Procure spend is calculated by taking the absolute value of all the items (subtotal) on an order at the time it was approved. 

      Please Note:

      • Ancillary fees such as shipping and taxes are not used in the calculation of Procure Spend. 
      • Any adjustments after the order has been approved will not impact Procure Spend. 
      • After-the-fact Purchase Orders are EXCLUDED from Procure Spend calculations.

        How is Payables Spend Calculated

        Payables spend is calculated by taking the absolute value of the stated total of all bill record at the time of posting to the "New" bill stage. 

        Please Note:

        • Any adjustments after the bill has been posted will not impact the Payables Spend calculation. 
        • Bills marked as duplicates at time of posting will be EXCLUDED from Payables Spend calculations.

        View your Spend Tier and Metrics

        You can view your spend information at anytime by visiting your Usage and Limits report provided to you by your customer success manager.

        Spend Period
        • The spend period is the timeframe between two dates during which spending is monitored for billing purposes. It helps track how spending accumulates over a specific period.

        Spend Period Refresh
        • The spend period refresh signifies the timeframe when the spend period will reset to start a new balance.

        Spend Tier
        • Spend tiers  are subscriptions of a predetermined spend amount, along with rates for any spending that goes beyond the prepaid amount.

        Current Billing Period
        • The current billing period is the active time frame between the last billing date and the next billing date, during which charges are accumulated for the next invoice.

        Spend
        • The amount of Procure or Payables Spend accumulated during the spend period.

        Spend Limit
        • The predetermined spend amount that is associated to the subscribed subscription tier.

        Billable Spend
        • The amount of  spend that exceeds the spend limit during the spend period.

        Bookings
        • The amount of fees accrued during the spend period in relation to billable spend.

        Billings
        • The amount of fees that have been billed during the spend period.

        Unbilled Charges
        • The amount of fees that have yet to be billed during the spend period.

        View Your Spend Period Tier Breakdown

        As spending accumulates during the spend period, you will be able to see how it aligns with the spend tiers and the corresponding billing impact based on your subscription. Spend within your subscribed tier will not incur charges, while spend that exceeds your subscribed tier will be billed according to the corresponding rate outlined in the spend period breakdown table.

        Tier
        • The official name the is associated to buckets of spend.

        Start
        • The first dollar amount where spend falls into a given tier.

        End
        • The last dollar amount where spend falls into a given tier.

        Rate
        • The fee that is associated with each tier. Tiers that are included with your subscription will show 0.00%, while tiers that exceed your spend limit will have a rate that aligns with your agreement.

        Pro-Rated Spend
        • When you choose to upgrade your spend tier during an active spend period, the concept of pro-rated spend will apply. This means that the days from the beginning of the current spend period until the date of your upgrade will be calculated using a daily pro-rated rate that corresponds to your new subscription tier.

        Actual Spend
        • The amount of spend that has been conducted by users.

        Total Spend
        • The summation of pro-rated and actual spend.

        Charges
        • The Rate * Actual Spend.

        Please Note:

        Unbilled charges from a given billing period will be billed on the 5th of the following month.

        Notifications

        Users who are set as an account contact will receive an email notification at 3:00 am Est on the first of  each month. To add a user as an account contact, contact your Customer Success Manager.

        Upgrade Subscription and Spend Tiers

        You have the option to upgrade your subscription to a higher spend tier at any time to avoid additional spend usage charges. 



        You cannot decrease your spend tier until your renewal date outlined in your commitment agreement. Even if spend is below your subscribed spend tier, your account will not automatically be downgraded.

        If you have additional questions about Procure and Payables spend, reach out to your Customer Success Manager.


        This article is used for documentation feedback only. For more help email help.me@curemint.io