diff --git a/cmd/satellite/billing.go b/cmd/satellite/billing.go
index 56c303c48..73e3f03bc 100644
--- a/cmd/satellite/billing.go
+++ b/cmd/satellite/billing.go
@@ -5,8 +5,6 @@ package main
 
 import (
 	"context"
-	"strconv"
-	"strings"
 	"time"
 
 	"github.com/spf13/cobra"
@@ -70,29 +68,15 @@ func setupPayments(log *zap.Logger, db satellite.DB) (*stripecoinpayments.Servic
 		pc.BonusRate)
 }
 
-// parseBillingPeriodFromString parses provided date string and returns corresponding time.Time.
-func parseBillingPeriod(s string) (time.Time, error) {
-	values := strings.Split(s, "/")
-
-	if len(values) != 2 {
-		return time.Time{}, errs.New("invalid date format %s, use mm/yyyy", s)
-	}
-
-	month, err := strconv.ParseInt(values[0], 10, 64)
+// parseYearMonth parses year and month from the provided string and returns a corresponding time.Time for the first day
+// of the month. The input year and month should be iso8601 format (yyyy-mm).
+func parseYearMonth(yearMonth string) (time.Time, error) {
+	// parse using iso8601 yyyy-mm
+	t, err := time.Parse("2006-01", yearMonth)
 	if err != nil {
-		return time.Time{}, errs.New("can not parse month: %v", err)
+		return time.Time{}, errs.New("invalid date specified. accepted format is yyyy-mm: %v", err)
 	}
-	year, err := strconv.ParseInt(values[1], 10, 64)
-	if err != nil {
-		return time.Time{}, errs.New("can not parse year: %v", err)
-	}
-
-	date := time.Date(int(year), time.Month(month), 1, 0, 0, 0, 0, time.UTC)
-	if date.Year() != int(year) || date.Month() != time.Month(month) || date.Day() != 1 {
-		return date, errs.New("dates mismatch have %s result %s", s, date)
-	}
-
-	return date, nil
+	return time.Date(t.Year(), t.Month(), 1, 0, 0, 0, 0, time.UTC), nil
 }
 
 // userData contains the uuid and email of a satellite user.
diff --git a/cmd/satellite/billing_test.go b/cmd/satellite/billing_test.go
new file mode 100644
index 000000000..3544463b0
--- /dev/null
+++ b/cmd/satellite/billing_test.go
@@ -0,0 +1,36 @@
+// Copyright (C) 2022 Storj Labs, Inc.
+// See LICENSE for copying information.
+
+package main
+
+import (
+	"testing"
+	"time"
+
+	"github.com/stretchr/testify/require"
+)
+
+func TestValidYearMonth(t *testing.T) {
+	yearMonth := "2020-12"
+	periodStart, err := parseYearMonth(yearMonth)
+	require.NoError(t, err)
+	require.Equal(t, 2020, periodStart.Year())
+	require.Equal(t, "December", periodStart.Month().String())
+	require.Equal(t, 01, periodStart.Day())
+	require.Equal(t, "UTC", periodStart.Location().String())
+}
+
+func TestInvalidYearMonth(t *testing.T) {
+	invalidYearMonth := []string{
+		"2020-13",
+		"2020-00",
+		"123-01",
+		"1999-3",
+	}
+
+	for _, invalid := range invalidYearMonth {
+		date, err := parseYearMonth(invalid)
+		require.Equal(t, date, time.Time{})
+		require.Error(t, err)
+	}
+}
diff --git a/cmd/satellite/main.go b/cmd/satellite/main.go
index 9c7a1ae6e..82ffd7ead 100644
--- a/cmd/satellite/main.go
+++ b/cmd/satellite/main.go
@@ -238,6 +238,7 @@ var (
 		Use:   "pay-invoices",
 		Short: "pay finalized invoices",
 		Long:  "attempts payment on all open finalized invoices according to subscriptions settings.",
+		Args:  cobra.ExactArgs(1),
 		RunE:  cmdPayCustomerInvoices,
 	}
 	stripeCustomerCmd = &cobra.Command{
@@ -734,52 +735,52 @@ func cmdValueAttribution(cmd *cobra.Command, args []string) (err error) {
 func cmdPrepareCustomerInvoiceRecords(cmd *cobra.Command, args []string) (err error) {
 	ctx, _ := process.Ctx(cmd)
 
-	period, err := parseBillingPeriod(args[0])
+	periodStart, err := parseYearMonth(args[0])
 	if err != nil {
-		return errs.New("invalid period specified: %v", err)
+		return err
 	}
 
 	return runBillingCmd(ctx, func(ctx context.Context, payments *stripecoinpayments.Service, _ satellite.DB) error {
-		return payments.PrepareInvoiceProjectRecords(ctx, period)
+		return payments.PrepareInvoiceProjectRecords(ctx, periodStart)
 	})
 }
 
 func cmdCreateCustomerProjectInvoiceItems(cmd *cobra.Command, args []string) (err error) {
 	ctx, _ := process.Ctx(cmd)
 
-	period, err := parseBillingPeriod(args[0])
+	periodStart, err := parseYearMonth(args[0])
 	if err != nil {
-		return errs.New("invalid period specified: %v", err)
+		return err
 	}
 
 	return runBillingCmd(ctx, func(ctx context.Context, payments *stripecoinpayments.Service, _ satellite.DB) error {
-		return payments.InvoiceApplyProjectRecords(ctx, period)
+		return payments.InvoiceApplyProjectRecords(ctx, periodStart)
 	})
 }
 
 func cmdCreateCustomerInvoices(cmd *cobra.Command, args []string) (err error) {
 	ctx, _ := process.Ctx(cmd)
 
-	period, err := parseBillingPeriod(args[0])
+	periodStart, err := parseYearMonth(args[0])
 	if err != nil {
-		return errs.New("invalid period specified: %v", err)
+		return err
 	}
 
 	return runBillingCmd(ctx, func(ctx context.Context, payments *stripecoinpayments.Service, _ satellite.DB) error {
-		return payments.CreateInvoices(ctx, period)
+		return payments.CreateInvoices(ctx, periodStart)
 	})
 }
 
 func cmdGenerateCustomerInvoices(cmd *cobra.Command, args []string) (err error) {
 	ctx, _ := process.Ctx(cmd)
 
-	period, err := parseBillingPeriod(args[0])
+	periodStart, err := parseYearMonth(args[0])
 	if err != nil {
-		return errs.New("invalid period specified: %v", err)
+		return err
 	}
 
 	return runBillingCmd(ctx, func(ctx context.Context, payments *stripecoinpayments.Service, _ satellite.DB) error {
-		return payments.GenerateInvoices(ctx, period)
+		return payments.GenerateInvoices(ctx, periodStart)
 	})
 }
 
@@ -794,17 +795,17 @@ func cmdFinalizeCustomerInvoices(cmd *cobra.Command, args []string) (err error)
 func cmdPayCustomerInvoices(cmd *cobra.Command, args []string) (err error) {
 	ctx, _ := process.Ctx(cmd)
 
-	t, err := time.Parse("02/01/2006", args[0])
+	periodStart, err := parseYearMonth(args[0])
 	if err != nil {
-		return errs.New("invalid date specified specified: %v", err)
+		return err
 	}
 
 	return runBillingCmd(ctx, func(ctx context.Context, payments *stripecoinpayments.Service, _ satellite.DB) error {
-		err := payments.InvoiceApplyTokenBalance(ctx, t)
+		err := payments.InvoiceApplyTokenBalance(ctx, periodStart)
 		if err != nil {
 			return errs.New("error applying native token payments: %v", err)
 		}
-		return payments.PayInvoices(ctx, t)
+		return payments.PayInvoices(ctx, periodStart)
 	})
 }
 
diff --git a/scripts/tests/integration/test-billing.sh b/scripts/tests/integration/test-billing.sh
index 41dd26107..4d4b94808 100755
--- a/scripts/tests/integration/test-billing.sh
+++ b/scripts/tests/integration/test-billing.sh
@@ -1,7 +1,7 @@
 #!/usr/bin/env bash
 set -ueo pipefail
 
-PERIOD=$(date -d "$(date +%Y-%m)-15 last month" '+%m/%Y')
+PERIOD=$(date -d "$(date +%Y-%m)-15 last month" '+%Y-%m')
 satellite --config-dir $SATELLITE_0_DIR billing prepare-invoice-records $PERIOD
 satellite --config-dir $SATELLITE_0_DIR billing create-invoice-items    $PERIOD
 satellite --config-dir $SATELLITE_0_DIR billing create-invoice-coupons  $PERIOD