Catch-Up Billings
The system can also generate a record for catch-up billings, if specified in the processing option, when the estimated amount billed for the year and the actual amount differ. For example, if the amount of estimated expenses billed each month is 1,400.00, and the actual annual amount (divided by 12) is 1,600.00, the system generates a catch-up billing for 2,400.00, which represents the difference between the estimated and actual amounts (200) multiplied by the number of months in the billing cycle (12).
You can specify whether the catch-up billing is based on estimated amounts only, estimated amounts less adjustments (write-offs), or estimated amounts less payments (receipts). The method you use directly affects the catch-up billing amount.