When We Bill For Them, We Owe Them Money

When you bill on behalf of a service provider (i.e., the service provider has a billing relationship of We Bill For Them ), you will eventually owe them money (because the customer pays you for the service provider's service). You have two options in respect of when the system increases the amount you owe the service provider:

  • You can tell the system to increase how much you owe the service provider when you create the customer's bill. Some people refer to this method as "purchasing the receivable from the service provider".
  • You can tell the system to increase how much you owe the service provider only when you are paid for by the customer.

The system keeps track of how much you owe a service provider on a service agreement linked to the service provider's account. The system creates adjustments against this service agreement to increase how much you owe them.

If you "purchase the receivable" (i.e., you owe them when you bill the customer), an adjustment is created when the customer is billed. If you owe them only when you are paid by the customer, an adjustment is created when the customer pays. The following example illustrates an adjustment being created when the bill is frozen (illustrating the "purchase the receivable" scenario):

The applicaion keeps track of how much you owe a service provider on a service agreement linked to the service provider's account. The application creates adjustments against this service agreement to increase how much you owe them. If you "purchase the receivable", an adjustment is created when the customer is billed. If you owe them only when you are paid by the customer, an adjustment is created when the customer pays.

If you only pay the service provider when you are paid, the example would look as follows:

If you only pay the service provider when you are paid, an adjustment is created when the payment is frozen and increases how much we owe the service provider.