---
sidebar_position: 2
title: Pricing Models (Flat, Tiered, Consumption)
description: Configuring flexible pricing logic including flat-fee subscriptions, per-seat tiers, volume tiered pricing, and consumption overages.
keywords:
  - pricing models
  - tiered pricing
  - consumption pricing
  - usage based pricing
---

# Pricing Models (Flat, Tiered, Consumption)

**Pricing Models in GAAPx** give RevOps and Finance complete flexibility to model any B2B SaaS monetization structure while automatically generating correct billing and ASC 606 revenue subledger schedules.

:::info SCREENSHOT PLACEHOLDER: Pricing Model Configurator
**Location in App**: `App > Products > [SKU] > Pricing Structure`  
**Visual Description**: Modal showing tier boundary configuration, unit prices, overage rates, and prepaid minimum commitments.  
**Recommended Dimensions**: `1200 x 675`  
:::

---

## Supported Pricing Archetypes

### 1. Flat Fee Subscriptions
* **Mechanism**: Fixed recurring fee per billing cycle (e.g. $10,000/month or $120,000/year).
* **Billing**: Invoiced in advance.
* **Revenue**: Amortized ratably over the contract duration.

### 2. Per-Seat & Volume Tiered Pricing
* **Tiered / Graduated**: First 100 seats at $50/seat, next 400 seats at $40/seat, thereafter at $30/seat.
* **Volume / Block**: Price per seat applies to all units once a volume threshold is crossed.

### 3. Consumption & Metered Usage
* **Pure Usage**: Billed in arrears based on ingested telemetry events (e.g., API calls, compute hours, transactions processed).
* **Prepaid Commitments with Drawdown**: Customer prepays $50,000 in credits; monthly consumption burns down the balance; overages invoice automatically in arrears.