Contract Type - Billing

Open Admin Menu, Contract Type and navigate to the Billing tab to define how the system manages bill segments for contracts of a given contract type.

Description of Page

Turn on Eligible for Billing if the system should create bill segments for contracts of this type. This will typically be turned on for all contracts except for those used to hold write-off amounts or to levy one-off adjustments.

Define the minimum number of days a bill segment (other than the final segment) must span using Minimum Days for Billing. This is useful to prevent initial bill segments that span only a few days.

Fastpath: For more information about minimum days, refer to Preventing Short Bill Segments.

Select the Bill Segment Type that controls both how bill segments for this contract type will be created and how the related financial transaction affects the general ledger and the customer's debt.

Fastpath: For more information about bill segment types, refer to Setting Up Bill Segment Types.

Use Default Description on Bill to define the verbiage that should print on the customer's bill.

Note: Rates overwrite this description. The Default Description on Bill is not applicable for contracts whose charges are calculated using a rate. Why? Because the description that appears on the bill segment is defined on the rate schedule's rate version.
Note: Billable charges overwrite this description. The Default Description on Bill is not applicable for contracts whose charges are calculated using a billable charge. Why? Because the description that appears on the bill segment is defined on the billable charge.

Use the Billing Processing Sequence if you need to control the order in which contracts linked to this contract type are processed by billing and interval data creation processes.

Fastpath: Refer to Processing Sequence Considerations for more information.

Use Bill Print Priority to define the order in which the contract type's bill segments should appear on bills (relative to the other contract types that appear on a bill).

Note: The values for this field are customizable using the Lookup table. This field name is BILL_​PRT_​PRIO_​FLG.

Use Max Bill Threshold if you want the system to generate a bill error when a bill segment is produced in batch that exceeds a given value. These bill errors will appear on the standard billing queries and To Do lists. If, after reviewing the high value bill segment, an operator truly intends to send the bill out, they should regenerate the bill. Refer to How To Correct A Bill Segment That's In Error for more information.

CAUTION: The value entered in this field will DEFAULT onto contracts of this type when they are first created. An operator may change the default value on a contract in case a specific customer has unusually high bills that continually error out. It's important to be aware that if you change the value of High Bill Amount on an contract type and there already exist contracts of this type, the existing contracts will contain the original value (the new value on the contract type will not be propagated on the existing contracts).

Use Graph Unit Of Measure to define the unit of measure of the graphed consumption on the bill (if any).

Turn on Allow Estimates if the system is allowed to generate estimated consumption at billing time. This value is defaulted onto contracts and can be overridden on an individual contract.

Turn on Characteristic Location Required if a characteristic location must be linked to the contract when the contract is activated. The characteristic location is used to define the taxing authorities associated with the contract's bill segments. It is also used to identify where the contract's service is located on various windows.

Fastpath: For more information about how characteristic location is used, refer to An Illustration Of A Bill Factor And Its Characteristics.

Use the Initial Start Date Option to control how billing should calculate the consumption period for the very first bill for contracts of this type. This field is not applicable for sub contract types or contract types with a special role of Billable Charge. Valid values are Include First Day, Add 1 Day Always and Add 1 Day for Back-to-back.

Contracts may have the end date of their bill segments defined on a user-maintained bill period schedule. This option is used when bill segments must fall on strict calendar boundaries (e.g., quarterly bills that end on the last day of the quarter). If this contract type should be billed like this, select Use Bill Period in the Use Calendar Billing field. When this option is used, you must define the Bill Period whose schedule defines the bill segment end dates.

Fastpath: For more information about bill period schedules, refer to Designing Bill Periods. For more information about other bill end date methods, refer to Ways To Control The End Date Of A Bill Segment.

Instead of the Use Bill Period method, contracts may have their bill segment end date based on the first day of service. For example, if service started on the 16 th of some month, the ongoing bill segments will start on roughly the 16 th of each month. If this contract type should be billed like this, select Anniversary Future Billing or Anniversary Past Billing in the Use Calendar Billing field. When either option is used, you must define the Anniversary Bill Frequency. This frequency defines the amount of time between bill segments.

Fastpath: For more information about anniversary billing, refer to Using The Anniversary Method. For more information about other bill end date methods, refer to Ways To Control The End Date Of A Bill Segment.

If you want to create billable charges with future date for a contract, you must select the Allow Advanced Billing option from the Use Calendar Billing list.

Total Bill Amount indicates whether contracts of this type can use the total amount to bill field on the contract page. Valid values are Not Allowed and Required. Only contract types used to bill for deposits or loans should have this field set to Required.

If Required is selected, you must enter the Total Amount To Bill Label. The Total Amount To Bill Label defines the label that prefixes the total bill amount on the contract page for contracts of this contract type.

Recurring Charge indicates whether contracts of this type can use the recurring charge field on the contract window . Valid values are Not Allowed, Optional and Required. If either Optional or Required are used, you must enter:

  • Recurring Chg Amt Label. This defines the label that prefixes the recurring charge amount on the contract window for contracts of this contract type.
  • Recurring Charge Frequency. This defines the following:
    • Specifies the frequency at which the Recurring Charge Amount specified on contracts of the contract type is to be billed.
    • Serves as the basis for proration of the Recurring Charge Amount.
    • Specifies the frequency at which contracts of the contract type without a rate will be billed.
Fastpath: For more information about how to use the recurring charge information, refer to Merchandise Segmentation - Installment Billing, Deposit Segmentation - Installment Billing, Payment Arrangement Segmentation, The Terms Of A Loan Are Stored On A Contract.

Turn on Eligible for Budget if contracts of this type can participate in budget billing. If this switch is turned on, then you must define the Adj ustment Type (Synch Current) that will be used to synchronize (make equal) the current amount with the payoff amount on a contract of this type when a budget is cancelled. (The Adjustment Type (Synch Current) field is on the main page.)

Fastpath: Refer to Budget Billing for more information about budgets in general. Refer to Designing and Defining Budget Plans for more information.

Set the Eligible for Non-billed Budget flag to Eligible for Non-billed Budget if you want contracts of this type to be eligible to be covered by a non-billed budget. If this flag is set to Eligible for Non-billed Budget, you must also define the Adjustment Type (Current = 0) field (on Contract Type - Detail).

Related Topics:

Parent Topic: Setting Up Contract Types