diff --git a/app/models/chargeback/consumption.rb b/app/models/chargeback/consumption.rb
index 5198726e76c..9ea8bc205f2 100644
--- a/app/models/chargeback/consumption.rb
+++ b/app/models/chargeback/consumption.rb
@@ -4,12 +4,15 @@ def initialize(start_time, end_time)
       @start_time, @end_time = start_time, end_time
     end
 
-    def past_hours_in_interval
-      # We cannot charge for future hours (i.e. weekly report on Monday, should charge just monday)
-      @past_hours_in_interval ||= begin
-                                    past = (Time.current - @start_time).round / 1.hour
-                                    [past, hours_in_interval].min
-                                  end
+    def consumed_hours_in_interval
+      # Why we need this?
+      #   1) We cannot charge for hours until the resources existed (vm provisioned in the middle of month)
+      #   2) We cannot charge for future hours (i.e. weekly report on Monday, should charge just monday)
+      @consumed_hours_in_interval ||= begin
+                                        consuption_start = [@start_time, resource.try(:created_on)].compact.max
+                                        consumption_end = [Time.current, @end_time].min
+                                        (consumption_end - consuption_start).round / 1.hour
+                                      end
     end
 
     def hours_in_month
diff --git a/app/models/chargeback/consumption_with_rollups.rb b/app/models/chargeback/consumption_with_rollups.rb
index 04d84ee7d70..4cc75d07c11 100644
--- a/app/models/chargeback/consumption_with_rollups.rb
+++ b/app/models/chargeback/consumption_with_rollups.rb
@@ -19,7 +19,7 @@ def max(metric)
 
     def avg(metric)
       metric_sum = values(metric).sum
-      metric_sum / past_hours_in_interval
+      metric_sum / consumed_hours_in_interval
     end
 
     def none?(metric)
diff --git a/app/models/chargeback_rate_detail.rb b/app/models/chargeback_rate_detail.rb
index 6368608af8e..afbe04d2e40 100644
--- a/app/models/chargeback_rate_detail.rb
+++ b/app/models/chargeback_rate_detail.rb
@@ -233,7 +233,7 @@ def cost_keys
 
   def metric_and_cost_by(consumption)
     metric_value = metric_value_by(consumption)
-    [metric_value, hourly_cost(metric_value, consumption) * consumption.past_hours_in_interval]
+    [metric_value, hourly_cost(metric_value, consumption) * consumption.consumed_hours_in_interval]
   end
 
   def first_tier?(tier,tiers)