Billing Engine on AWS Serverless

Billing Engine on AWS Serverless

At Comtravo, we utilize AWS serverless infrastructure for many of our business cases. Lambda functions and Step functions, in particular, enable us to design and implement solutions for various complex business workflows. They also allow us to flexibly extend those solutions in the future. One example is our Billing Engine. In this post, I’ll discuss how we built a scalable and extensible billing engine that avoids service level throttling even at times of high load.

What is a Billing Engine?

At Comtravo, we charge our customers per booking. For those charges, we need to provide invoices and financial reports. Our customers can choose their payment method and billing aggregation option. For example, the Collective Invoice payment method indicates that a customer wants to collect multiple charges into one invoice. Billing aggregations indicate intervals of charges to collect. For example, monthly and semi-monthly indicate that a customer wants to collect charges into a monthly invoice or bi-weekly invoice respectively. We call the solution that organizes these workflows the Billing Engine. I want to highlight that the Billing Engine is much more than an invoice issuer, it also generates reports and handles sending those reports to our customers.


The Billing Engine itself runs purely on Serverless infrastucture on AWS and consumes our internal APIs. It is triggered by AWS cloudwatch, which provides specific input for each business case.

Cloudwatch triggers Lambda function

We’ve configured cloudwatch events with Terraform. It’s rather simple to do, for instance like the following:

 resource "aws_cloudwatch_event_target" "ci_monthly" {
  rule = "${}"
  arn  = "${module.lambda-finance-report-preprocessor.lambda_arn}"

  input = <<INPUT
    "billing_aggregation": "monthly",
    "period_of_execution":  "beginning-of-the-month"

The first Lambda function that is triggered is the pre-processor. Based on the cloudwatch input, the pre-processor loads bookings that happened during a specified period of time. The pre-processor then figures out which companies have reports due. The number of booking events varies; in practice, there are often more than 20K events for each run of the lambda function. Each of these events is processed by a Step function that itself consists of multiple Lambda functions. Together, they generate invoices and reports and handle sending those to our customers via the Simple Email Service.

The Challenge of Throttling

In order to maintain a high level of quality of service, cloud providers can throttle services during peak times. This allows the cloud provider to ensure their overall system is stable. The resource throttling can be limited to individual instances of an application or be more general and throttle entire services. The potential throttling has a major impact on how application developers need to design services.

In our use case, if we started processing events for all companies at once, for instance, by starting as many Step functions as we have events, the lambda and step functions would get rate limited. There are several approaches to resolve this issue. For example, the exponential backoff algorithm uses progressively longer waits between retries for consecutive rate limit responses. Exponential backoff, however, can perform quite poorly in practice when a lot of clients issue long-running requests at the same time. The cloud provider can become overloaded simply from having to reject a large number of requests. A better approach would be to implement client-side throttling, which allows the application developer to account for application-specific behaviors. Google recommends client-side throttling to prevent overloading server backends with just rejecting requests.

In order to solve the throttling issue, we implemented Queue-Based Load Leveling. Queue and Lambda function control the rate

Instead of directly triggering an AWS Step function, the pre-processor Lambda feeds a work queue based on SQS. SQS provides nearly unlimited throughput and scales dynamically based on the demand of the application. On the other side of the queue, a Gatekeeper Lambda function actively controls the number of parallel Step Functions. Below is a code snippet of how to check the number of running Step functions in TypeScript.

First, we fetch the currently running Step functions and check whether there is enough capacity to trigger a new Step function. If there is available capacity, we fetch events with pre-defined limits from the work queue and run new Step functions. Below is a rough implementation in TypeScript.

const stepFunctions = new AWS.StepFunctions();

const params = {
  maxResults: 100,
  stateMachineArn: this.stateMachineArn,
  statusFilter: 'RUNNING'

const data: AWS.StepFunctions.ListExecutionsOutput = await stepFunctions

const numberOfExecutions: number = data.executions.length;

const numberOfStepFunctions = MAX_PARALLEL_STEP_FUNCTIONS - numberOfExecutions;
const tasksToBeExecuted = [];
for (let i = 0; i < numberOfStepFunctions; ++i) {
  tasksToBeExecuted.push(this.processMessage()); // processMessage method fetches message from queue and triggers Step Function

await Promise.all(tasksToBeExecuted);


Decoupling event triggers from the Step function that handles the event makes our approach both scalable and extensible. If there is a new type of payment method or billing aggregation, all we need to do is add a new Cloudwatch trigger and slightly adjust the pre-processor Lambda function. The approach is also scalable and allows us to handle peak times easily. A sudden increase in the number of billing events does not cause a service disruption due to infrastructure limitations.

Written by

Davit Ohanyan

Software Engineering Manager

David is an experienced hands on Engineering Manager with a proven track record of successfully built teams and delivered products. He enjoys making people successful and helping them to define and achieve their goals. In the same time his extensive engineering experience received 12+ years is a strong pillar for making technical decisions and finding optimal solutions.