Service Contract Billing
For service contracts, you can create billing templates on the UI which you associate with billing attributes. You can apply these templates to new and renewed contracts based on various criteria.
These attributes of subscription and coverage line types constitute the billing tab of the contract. The billing frequency - Year, Month, or Day - is chosen during the billing template creation.
The billing attributes for both, subscription and coverage include the following:
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Billing Frequency: Period for a serviceable item. For example, MONTH.
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Bill-from and Bill to Date: The start and end dates of the serviceable item.
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Tax: The tax levied on the service based on the region and regulations of the contract. All tax control information that is captured in the contract header is generated at the subscription or coverage line level. The estimated tax calculation is performed every time the subtotal changes for a line or covered asset.
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Invoice Date and Invoice Number: Billing invoice date and unique number specific to the billing summary of the contract line type.
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Invoicing Rule: Rule that indicates the time of payment - Advance Invoice and Arrears Invoice for subscription and coverage items.
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Billing Sequence: All values are generated in the Billing Sequence based on the following information: line start date, line end date, line subtotal, invoicing rule, billing frequency, and partial period attributes.
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Accounting Rule: Indicates the rule for revenue recognition. Accounting rule is mandatory during contract creation.
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Sales Credit: Region with the following fields - Salesperson, Credit Type, Percent, Start Date and End Date.
Upon creation of billing attributes of the subscription and coverage lines, the billing information is then sent to Account Receivables (AR) through the Scheduled ESS Programs for contract execution. You can generate invoices with individual charge information in cases of multiple charges.