Invoicing and Payment Policy
Background and purpose
Appfarm aims to maintain transparent and fair invoicing and payment practices, ensuring alignment with the Customer’s contractual agreements (i.e., the Appfarm Subscription Agreement) related to Appfarm’s software subscription services (“the Service”).
This policy provides guidance regarding the following main areas:
Invoicing of software services, including both Contracted Product Capabilities and Resources, as well as Additional Resources and Capabilities (e.g., product add-ons and other consumables).
Annual adjustment of prices.
Payment terms and deadlines, including overdue and reminder processes.
Procedures related to accounts in arrears or default due to lack of payment, which may lead to suspension or termination of the Service.
This policy relates to Appfarm’s software subscription services only. Invoicing for product success and other related professional services is covered in separate agreements and/or policies, although certain procedures and principles follow similar practices.
Invoicing of software services
The Subscription Agreement (including appendices and policies) governs the Customer's subscription scope. Customers generally subscribe to one of Appfarm’s available Subscription Tiers (“Subscription Tier”), which define the scope of included resources and capabilities for a fixed fee (i.e., “Base Subscription Fee”) at the time of conclusion of the agreement.
In addition, the Customer may choose to include and contract specific additional resources and capabilities beyond what is included in their Subscription Tier (i.e., “Contracted Product Capabilities and Resources”), or, during the subscription period, choose to make use of and consume additional resources and capabilities if available within their Subscription Tier (i.e., “Additional Resources and Capabilities”).
Generally, Appfarm’s invoicing process is performed at the start of each calendar month (i.e., on the first working day of the month).
Contracted Product Capabilities and Resources
Contracted Product Capabilities and Resources are invoiced in advance, together with the Base Subscription Fee, at the start of the applicable Invoicing Period, as stipulated in the Subscription Agreement (under “Invoice Structure”), for the entire length of a given Invoicing Period.
Subscriptions commencing partway through a calendar month will be prorated based on the number of days active in that month.
Invoicing is performed according to the volumes, amounts, timing, and payment terms set out in the Subscription Agreement and will continue until cancelled or terminated in accordance with the contracted terms.
Additional Resources and Capabilities
Usage of Additional Resources and Capabilities generally follows the same invoicing model as Contracted Product Capabilities and Resources. Once activated, they incur monthly fees, and follow the same subscription term, termination conditions, invoice structure, and payment terms as set out in the Subscription Agreement, unless the usage is explicitly approved and labeled as part of a complementary testing period (or similar).
Purchase of Additional Resources and Capabilities is operationally executed in one of two ways:
Appfarm-assisted: The Customer makes a request, and Appfarm enables the resource or capability.
Customer self-service: The Customer enables the resource or capability directly via the Service (either explicitly, or implicitly by exceeding set Subscription Tier threshold limits).
When usage of an additional resource or capability is identified, the invoicing system generates a purchase order assigned to the subscription. The purchase order will trigger an additional separate invoice to be issued as soon as practicable (at the latest in connection with the next monthly invoicing process). The additional usage will then be added to the Customer’s subscription, and invoiced together with the Base Subscription Fee, and any Contracted Product Capabilities and Resources, for subsequent invoices.
Invoicing will continue until cancellation or termination in accordance with the contracted terms.
Note: For countable resources (e.g., number of Apps, Environments, etc), invoicing is based on the maximum usage recorded during a calendar month. Reasonable pro-rata adjustments based on within-month usage between activation and termination dates may be made at Appfarm’s discretion.
There are some notable exceptions related to the above for (i) Active Users, and (ii) Other consumable services (e.g., SMS or AI Credits).
Active Users
Due to its variable and accumulative nature within a specific calendar month, the invoicing of Active Users consumption is managed differently.
All Subscription Tiers have an included quota of Active Users per month, and any usage beyond this threshold triggers separate invoicing of one or more additional Active Users bundles based on the actual usage within each calendar month.
Note: Surpassing the threshold in one month does not imply continuing charges for subsequent months unless usage remains above the threshold.
Other consumable services
Consumable services such as SMS and AI Credits are resources and capabilities made available in the Service that can have very variable usage patterns over time and depend heavily on customer use cases. Consumables are generally invoiced in arrears (i.e., monthly or quarterly), depending on usage volume and customer agreement. Other consumables may be purchased by self-service option directly in the Service.
One example is SMS, which can be enabled as integrated functionality in customer applications. SMS usage may be billed quarterly by default, but if usage exceeds a certain volume in a single month (e.g., above 5,000 SMS), a monthly invoice may be triggered. Conversely, very low monthly consumption volumes (e.g., below 500 SMS) may be billed semi-annually or annually to reduce administrative overhead.
Another example is AI Credits, which can be purchased directly in the Service via credit card. By special agreement, bulk purchases of AI Credits may be arranged via invoice.
Annual adjustment of prices
In accordance with the Subscription Agreement, Appfarm reserves the right to adjust all subscription fees (i.e., the Base Subscription Fee, fees for Contracted Product Capabilities and Resources, and fees for Additional Resources and Capabilities) on an annual basis. The annual adjustment will be the greater of either (i) a 5% increase or (ii) the percentage change in the relevant retail/consumer price index (for example, Statistics Norway’s Konsumprisindeksen in Norway) over the preceding year. This mechanism reflects Appfarm’s continued investment in research and development to enhance the quality and value of the Service.
Adjusted fees are calculated by applying the annual adjustment rate to the current fees, and rounding the result to the nearest NOK 50 or EUR 5.
Adjusted fees will take effect from January 1st each year. Appfarm will typically apply the changes in arrears on the first invoice in the new year. In certain cases, adapting to the Customer’s invoice period and frequency, the effects may be applied in advance on the last invoice in the preceding year.
Note: Appfarm reserves the right to adjust prices to reflect material changes in market conditions and/or unforeseen and material increases in direct costs associated with providing the Service, including, but not limited to, costs of technical infrastructure, data processing capabilities and storage, associated technologies, and changes in prices or availability of third-party services or others that constitute a part of the Service. In such cases, price adjustments must be reasonably documented by Appfarm, and written notice will be provided to the Customer at least 60 days prior to the effective date of the price adjustment.
Payment terms
Appfarm’s Payment Terms are set out in the Subscription Agreement (i.e., “Invoice Structure & Payment Terms”).
Generally, invoices are issued annually, semi-annually or quarterly, in advance, on the first day of each Invoicing Period. The length of the Invoicing Period typically correlates with the Customer’s Subscription Tier (i.e., Essential, Professional, or Dedicated).
Payment deadlines commonly range from 14 to 60 days after the invoice date, dependent on the Customer’s Subscription Tier and any supplemental agreements.
Note: All prepaid fees are non-refundable without exception. This includes circumstances when the Customer terminates the subscription under applicable law or statutory rights.
Overdue and reminder process
If payment is not received by the invoice due date, the invoice is deemed overdue. An automated reminder from Appfarm’s invoicing system is sent within 3 days after the due date. Additional automated reminders follow every 4 days for overdue invoices.
After multiple reminders (usually not more than 3, at Appfarm’s discretion), a final notice (i.e., Inkassovarsel in Norwegian) is sent with a 14-day deadline. If payment is still not received after this final notice period, the overdue invoice may be forwarded to a third-party collection agency for further follow-up.
Default and suspension of the Service
An account is considered in default if payment remains unsettled after the 14-day final notice period specified under Overdue and reminder process.
Upon default, Appfarm may suspend or terminate the Customer’s access to the Service, including any and all of the Customer’s Solutions related to the defaulting account, until all outstanding balances are settled.
If no timely resolution is reached, Appfarm reserves the right to initiate Customer Termination, in accordance with the termination provisions of the Subscription Agreement. The effective termination date will be determined pursuant to those provisions (e.g., the first day of the calendar month following a formal termination notice, or as otherwise specified). For clarity, the date on which the account is declared in default will be treated as the date of receipt of formal termination notice, unless otherwise stated in the Subscription Agreement.
Communication and escalation
Appfarm’s Customer Success and Partner Success teams are your primary contacts, and handle follow-up of overdue invoices and default situations in close cooperation with Appfarm’s Finance department.
If suspension or termination of the Service is imminent, this will be communicated via official channels (e.g., email, phone) to the Customer’s designated points of contact, referencing the specific invoice(s) and any remedial steps.
Where relevant, Appfarm-certified Partners will be informed or involved, particularly if they manage the Customer’s technical deployments on the Customer’s behalf.
Updates and revisions
This policy may be updated periodically to align with evolving business practices and/or regulations. Any material changes will be communicated to Customers and Partners via standard communication channels (e.g., email or notice within the Service). If revised terms require Customer acceptance, continued use of the Service following the notice period will constitute acceptance of the updated policy.
Disclaimer: This policy is intended as a supplement to the governing terms set out in the Subscription Agreement (including appendices and associated policies), including (but not limited to) the Service Level Agreement and Data Processing Agreement. In the event of any inconsistency or conflict between this policy and the Subscription Agreement, the terms of the Subscription Agreement shall prevail.
If you have any questions regarding this policy, please reach out to your Appfarm Customer Success or Partner Success representative.
Revision history
16.10.2025
Document published.
Last updated