In this article: Learn how The Food Corridor automatically bills clients for usage beyond their monthly plans, and how to choose between the overage billing options.
What is Overage?
Overage refers to bookings that exceed a client’s monthly plan. This is automatically calculated and billed to clients based on the billing plan they are assigned, ensuring that you're capturing all revenue for kitchen usage each month, without the hassle of tracking it manually.
Overage Billing Options
Overage can be billed to a client either on a monthly basis by adding it to their next monthly bill (overage billed monthly), or as it is accumulated, each day they use additional kitchen hours (overage billed daily). Whether you choose to bill overage monthly or daily, overage is calculated based on the following:
For Time-Based Plans: Overage is calculated using the Overage Tier hourly rates set in the billing plan.
For Credit-Based Plans: Overage is calculated using the Space Calendar's hourly rate for the booking (the percentage rate set in the billing plan also applies to overage).
You can set how overage is billed within each billing plan. Learn how and when to make overage billing changes here!
Overage Billed Monthly:
With overage billed monthly, all extra usage is added to the client’s next monthly bill. The total overage amount is summed up for the month and added as a line item to the client’s next monthly bill:
👉 Time-Based Plan Example: Your client is assigned a plan that includes 20 hours/month. They book 22 hours in March. These additional 2 hours will be added to their April bill.
👉 Credit-Based Plan Example: Your client is assigned a plan that includes $500 of credit. They book $650 of kitchen time in March. The additional $150 will be added to their April bill as overage.
Overage Billed Daily:
With overage billed Daily, clients will pay-as-they-go for any overage hours accumulated throughout the month. Once a client’s monthly base (hours or credits) is used up, each overage booking creates a daily charge that will be billed to the client at midnight following their booking:
👉 Time-Based Plan Example: Your client is assigned a plan that includes 20 hours/month, and they have used 18 hours already this month. They have a 4 hour booking today. 2 of the hours will be covered by their monthly plan and the other 2 hours will be billed to them at midnight following their booking.
👉 Credit-Based Plan Example: Your client just created an $80 booking, but only $20 of credit remains in their monthly plan. On the day of their booking, $20 is covered by their monthly plan, and the other $60 will be billed to them at midnight following their booking.
Choosing the Right Overage Option
Overage billing is set at the plan level, giving you the flexibility to create different overage options for different clients. Some reasons why you may want to use each option are outlined below:
Overage billed Monthly | Overage billed Daily |
Your client has predictable, consistent monthly hours | You want to collect a monthly minimum for usage, but bill extra time as it is used |
Your client has no major issues with failed payments or cash flow | Your client cannot pay large overage sums |
You and your client prefer a single monthly bill | You want cash flow throughout the month |
You prefer having extra time to edit and adjust bookings before clients are billed | Minimize the risk of revenue loss if a client leaves mid-billing cycle |
Still unsure which billing option fits your kitchen best? Check out our Overage FAQ or contact Support for personalized help.