---
title: Usage-Based Pricing
description: A pricing model where the customer pays strictly based on their actual consumption of the promised good or service. Revenue is constrained and recogni...
sidebar_position: 19
tags: ['asc-606', 'Revenue']
---

# Usage-Based Pricing

## The ASC 606 Standard

A pricing model where the customer pays strictly based on their actual consumption of the promised good or service. Revenue is constrained and recognized as the usage actually occurs.

## The Real-World Scenario

You charge a logistics company a fraction of a cent every time they ping your software to track a package delivery.

## The Spreadsheet Breaking Point

Manually exporting millions of usage data points from the product database into Excel to calculate monthly revenue causes system crashes.

## The Hidden Cost to the Bottom Line

Delayed or inaccurate usage calculations mean you are literally leaving earned money on the table and underreporting top-line growth.

## How GAAPX Eliminates the Risk

Ingests vast amounts of usage data via API daily, automatically updating unbilled receivables and revenue without manual aggregation.