Understanding Billing Cycles and Invoice Eligibility

Overview

With configurable billing cycles, billing specialists can set up their invoicing terms so that the system can split a billable charge based on the billing cycle calendar and only invoice transactions that need to. This article contains information on how to determining if a billable transaction can be invoiced for a given Billing Cycle.

Determining Invoicing Eligibility

In addition to the billable transaction's status, the transaction's eligibility is also used to determine if a transaction can be invoiced.

  • This data point is used on conjunction with configurable billing cycles.
  • If the customer is using calendar based billing cycles, the system will determine eligibility to the bill masters to be billed based on the bill master transaction date, associated billing calendar, and where we are in the billing cycle.

Here is how the system determines if a transaction is eligible. Please note that this is only applicable to bill masters that are associated with a calendar instance:

  • If BillMaster.CalendarIndstance.endDate is BEFORE today's date THEN the bill master record is eligible to be invoiced
  • If BillMaster.CalendarIndstance.endDate is AFTER or the SAME AS today's date THEN the bill master record is NOT eligible to be invoiced

Bill masters that are not tied to a calendar instance are always eligible to be invoiced.

Eligibility alone does not determine if a bill master record can be billed or not. The system also looks at bill master approval status, invoice terms, readiness to bill overrides, if the record is marked as unbillable, if it is already invoiced, etc.

Invoicing Using Billing Cycles

The invoicing process is initiated through the Billable Charge > Create an Invoice action. The invoicing service will examine the bill master records for the following data point:

  • Ready to be billed - per invoice terms the timesheet does not have to be approved in order to be invoiced, or bill master transaction status is approved
  • Eligible to be billed
  • Not billed yet
  • Not marked unbillable

Below is an example of a billable charge tied to a monthly billing calendar, that is being invoiced on 10/07/2020:

For this billable charge, only the September transactions are eligible to be billed, since the currently invoiced billing cycle is 09/01/2020 - 09/30/2020.

When an invoice is created, only the September transactions will be included in the invoice.

The remaining October transactions will become eligible and ready to be invoiced on November 1st.