Finance
Revenue Leakage in Usage Billing: 7 Causes and How to Fix Them
By the Orvlin team · · 6 min read
Seven common causes
- Dropped or delayed usage events.
- Overage terms not configured after a contract change.
- Expired discounts that keep applying.
- Manual spreadsheet calculations.
- Unbilled one-off services.
- Mismatched customer IDs between systems.
- Missed true-ups on commitments.
How to detect leakage
Reconcile product usage against invoiced quantities every period, and review contracts against billing configuration quarterly.
How to prevent it
Use a single system that ties contracts, pricing and usage together, with alerts when configured terms expire or usage has no matching price.
Frequently asked questions
- How much revenue do companies typically leak?
- It varies widely; the only reliable way to know is to reconcile usage to invoices.