Advanced Recurring Contract Billing Parameters

Select the default billing schedule group when new billing schedules are created. Billing schedule groups are created on the Billing Schedule Group page.

Select the calculation for proration: 

• Daily: Uses the number of days for the proration calculation.
• Monthly: Uses the number of months for the proration calculation.

For example, the annual amount for a contract is 12,000. The contract is from March to May. The amounts are calculated as follows: 

• Daily: 92 days based on 365 (or 366) days for the year. The partial year is calculated as 12,000 * (92/365) = 3024.66.
• Monthly: 3 months based on 12 months in a year. The partial year is calculated as 12,000 * (9/12) = 3,000.00.

If this option is changed, existing billing schedules are not affected. Only future calculations are changed.

For more information on proration, see Proation Method: Examples.

Select the default termination type: 

• Bill Remaining: Adds any remaining amounts in the billing schedule to the termination period, changes the status of the schedule to Last Billing, and updates the deferral end date for an associated deferral schedule.
  When the billing start date is after the termination date, the total amount of all remaining billing periods is added to the billing period and the remaining billing periods are remove.
• Adjust schedule: Cuts off the billing schedule at the termination date, changes the status of the schedule to Last Billing, and adjusts the associated deferral schedule by reversing the amount that no longer must be recognized.
  When the billing start date is after the termination date, the remaining billing periods are removed.
• No adjustment: Terminates the billing schedule as of the termination date specified. No adjustments to the billing schedule are made.
  When selected, Credit option is set to No credit and Prorate daily is set to No. Both options become read-only and cannot be changed.

Select the schedule type:

• None: No restrictions on creating billing schedules for customers.
• Customer: Only one billing schedule can be created for each customer.
• End user: Only one billing schedule can be created for each customer-end user combination.

Select whether to align the billing schedule line to the end of a month when a billing schedule is created or updated:

• Yes: Aligns the billing schedule lines to the end of a month.
  For example, a billing cycle for a line starts on April 15. The billing frequency is monthly. When this option is set to Yes, the dates of the first billing cycle are April 15 to April 30. Then each subsequent billing cycle for the line starts on the 1st of the month and ends on the last day of the month.
  
• No: Aligns the billing schedule lines to the same date of a month of when the billing schedule is created.
  If you want to use the alignment functionality on the Support and Renewal Process page, set this option to No.
  For example, a billing cycle for a line starts on April 15. When this option is set to No, the dates of the first billing cycle are April 15 to May 14. Each subsequent billing cycle starts on the 15th of the month and ends on the 14th of the month.

Note: When this option is set to No and the start date of the billing cycle is near the end of a month, the way the alignment start and end dates are determined do not follow the standard functionality. For details, review the following examples.

• When the billing start date is the 28 of the month, each billing period starts on the 28 of the month and ends on the 27 of the following month. In this situation, the standard functionality works as expected. View billing periods.

Billing Dates Table

Billing Start Date is 28 of the Month
Start Date	End Date
January 28	February 27
February 28	March 27
March 28	April 27
April 28	May 27
May 28	June 27
June 28	July 27
July 28	August 27
August 28	September 27
September 28	October 27
October 28	November 27
November 28	December 27
December 28	January 27

• When the billing start date is the 29 of the month, each billing period starts on the 29 of the month and ends on the 28 of the following month. In this situation, the standard functionality works as expected for all months except February. View billing periods.

Billing Date Exceptions Table

Billing Start Date is 29 of the Month (Leap Year)		|	Billing Start Date is 29 of the Month (No Leap Year)
Start Date	End Date	|	Start Date	End Date
January 29	February 28	|	January 29	February 28
February 29	March 28	|	March 01	March 28
March 29	April 28	|	March 29	April 28
April 29	May 28	|	April 29	May 28
May 29	June 28	|	May 29	June 28
June 29	July 28	|	June 29	July 28
July 29	August 28	|	July 29	August 28
August 29	September 28	|	August 29	September 28
September 29	October 28	|	September 29	October 28
October 29	November 28	|	October 29	November 28
November 29	December 28	|	November 29	December 28
December 29	January 28	|	December 29	January 28

• When the billing start date is the 30 of the month, each billing period starts on the 30 of the month and ends on the 29 of the following month. In this situation, the standard functionality works as expected for all months except February. View billing periods.

Billing Date Exceptions Table

Billing Start Date is 30 of the Month (Leap Year)		|	Billing Start Date is 30 of the Month (No Leap Year)
Start Date	End Date	|	Start Date	End Date
January 30	February 29	|	January 30	February 28
March 01	March 29	|	March 01	March 29
March 30	April 29	|	March 30	April 29
April 30	May 29	|	April 30	May 29
May 30	June 29	|	May 30	June 29
June 30	July 29	|	June 30	July 29
July 30	August 29	|	July 30	August 29
August 30	September 29	|	August 30	September 29
September 30	October 29	|	September 30	October 29
October 30	November 29	|	October 30	November 29
November 30	December 29	|	November 30	December 29
December 30	January 29	|	December 30	January 29

• When the billing start date is the 31 of the month, each billing period ends on the 30 of the following month. The start date of a billing cycles depend on whether the end date of the previous billing cycle is the last date of the month. View billing periods.

Billing Date Exceptions Table

Billing Start Date is 31 of the Month (Leap Year)		|	Billing Start Date is 31 of the Month (No Leap Year)
Start Date	End Date	|	Start Date	End Date
January 31	February 29	|	January 31	February 28
March 01	March 30	|	March 01	March 30
March 31	April 30	|	March 31	April 30
May 01	May 30	|	May 01	May 30
May 31	June 30	|	May 31	June 30
July 1	July 30	|	July 1	July 30
July 31	August 30	|	July 31	August 30
August 31	September 30	|	August 31	September 30
October 01	October 30	|	October 01	October 30
October 31	November 30	|	October 31	November 30
December 01	December 30	|	December 01	December 30
December 31	January 30	|	December 31	January 30

Select whether to align the start and end dates for the deferral schedule to use the same dates as the billing schedule.

• Yes: Sets the default start and end dates of the deferral schedule to be the same as the billing schedule.
• No: Does not align the default start and end dates of the deferral schedule to be the same as the billing schedule.

If you selected Yes, you can change the dates for the deferral schedule as needed.

Select whether to prorate the partial billing periods: 

• Yes: Calculates partial amounts for first or last periods that are not full billing periods. The amounts for partial billing periods is a fraction of the full billing period amount.
• No: Does not calculate partial amounts when the first or last periods are not full billing periods. Partial billing periods are charged the same amount as full billing periods.

Select whether a billing schedule is on hold when it is created: 

• Yes: Newly created billing schedules are on hold, and require an approval process before they are active.
• No: Newly created billing schedules are immediately active and do not require an approval process.

Specify a password to restrict users from changing the status of a billing schedule from On Hold to Active. Available when set to Yes.

You cannot create an invoice for a billing schedule that has a Hold status.

Select the invoice transaction type you want to process.

Indicates whether the customer split functionality is used. This functionality allows you to split the invoice for an item among multiple customers.

• Yes: The customer split functionality is used. When selected, the Customer Splitpage becomes available.
• No: The customer split functionality is not used.

Select whether the billing periods for which invoices are to be created are consolidated into a single sales document: 

• Yes: Invoices for multiple billing periods are consolidated into a single sales document. These lines must be for item of the same billing schedule. View examples.
  Note: Consolidating all periods and consolidating by items cannot work together. When this option is set to Yes, lines cannot be consolidated by items.
  Also, this feature is not available for deferrable items.

Review the following examples to understand how the periods are consolidated.

Single Item

A billing schedule has one line item, S0110. The billing frequency is monthly for 12 months, from January 2021 to December 2021. The invoice is created for the first three periods (January to March).

The billing schedule is as follows: 

Schedule number	Item	Start date	End date	Quantity	Unit	Unit price	Net amount
USMF-000397	S0110	01 January 2021	31 December 2021	1	Each	100.00	100.00

The billing details for the line are as follows: 

Line	Start date	End date	Quantity	Unit price	Net amount
1	01 January 2021	31 January 2021	1	100.00	100.00
2	01 February 2021	28 February 2021	1	100.00	100.00
3	01 March 2021	31 March 2021	1	100.00	100.00
4	01 April 2021	30 April 2021	1	100.00	100.00
5	01 May 2021	31 May 2021	1	100.00	100.00
6	01 June 2021	30 June 2021	1	100.00	100.00
7	01 July 2021	31 July 2021	1	100.00	100.00
8	01 August 2021	31 August 2021	1	100.00	100.00
9	01 September 2021	30 September 2021	1	100.00	100.00
10	01 October 2021	31 October 2021	1	100.00	100.00
11	01 November 2021	30 November 2021	1	100.00	100.00
12	01 December 2021	31 December 2021	1	100.00	100.00

The lines for the first three periods are consolidated with the total quantity of 3 (1 for each month) and a net amount of 300.00 (100.00 for each month): 

Line number	Item ID	Quantity	Unit price	Net amount
1	S0110	3	100.00	300.00

Two Identical Items

A billing schedule has two identical line items, S0110. The billing frequency is monthly for 12 months, from January 2021 to December 2021. The invoice is created for the first three periods (January to March).

The billing schedule is as follows: 

Billing schedule number:			USMF-000397
Line number	Item	Start date	End date	Quantity	Unit	Unit price	Net amount
1.00	S0110	01 January 2021	31 December 2021	1	Each	100.00	100.00
2.00	S0110	01 January 2021	31 December 2021	1	Each	100.00	100.00

One sales order is created with two sales lines: one for each item, consolidated 3 periods for each.

One sales line is created with a total quantity of 3 (1 for each month) and net amount of 300.00 (100.00) for each month.

Line number	Item ID	Quantity	Unit price	Net amount
1.00	S0110	3	100.00	300.00	Consolidated January to March for line 1.
2.00	S0110	3	100.00	300.00	Consolidated January to March for line 2.

• No: Invoices for multiple billing periods are not consolidated.

Select whether sales documents are consolidated by customer:

• Yes:  Consolidates invoices by customer ID, document ID, customer reference, project ID, and currency ID when an invoice is created.
• No: Does not consolidate invoices by customer.

Select whether sales documents are consolidated by item:

• Yes: Consolidates the invoice lines for matching items and project IDs when an invoice is created.
• No: Does not consolidate invoices by item.

If any items belong to item groups that have a Number of top lines greater than zero on the Item Group Setup page, this option is automatically set to No.

Indicates whether renewal items are also put into item groups for invoice purposes: 

• Yes: Item groups are used for renewal items.
• No: Item groups are not used.

This setting is the default value on the Invoice Creator and Sales Order pages.

Select the default action for posting the invoice after the sales order is created: 

• Create sales order: Creates the sales order only. At a later time, you can manually create and post the sales order invoice.
  When a project ID exists for any of the lines, the project ID is attached to the sales order.
• Show posting invoice form or create invoice proposal: Creates the sales order, and opens the posting invoice page. You can then choose to manually post the invoice or save it and manually post it at a later time.
  When a project ID exists for any of the lines, a project invoice proposal is created for the sales order.

Note: When this option is selected, the invoice must be manually processed . As a result, you cannot process the sales order within a batch job.

• Create free text invoice: Creates a free text invoice. Available when Invoice transaction type is Free text invoice.
• Post invoice automatically: Creates the sales order, and automatically posts the sales order invoice.
  When a project ID exists for any of the lines, a project invoice proposal is created and then posted.

Select whether to include the billing schedule dates in the item description: 

• Yes: Includes the date in the item description.
• No: Does not include the date in the item description.

Select whether to include the billing schedule lines that are usage items with a zero (0) consumption amount and use the free quantity feature.

• Yes: Billing schedule lines that have a zero consumption and use the free quantity feature do not appear on the Invoice Creator page. No invoices can be created for these lines.
• No: Billing schedule lines that have a zero consumption amount appear on the Invoice Creator page.

Select whether to automatically turn on the support and renewal feature for lines that are manually added or imported to a billing schedule: 

• Yes: Items that are added to a billing schedule automatically use the support and renewal functionality.
• No: Items that are added to the billing schedule do not use the support and renewal functionality. You must manually set to use this feature.

Select the support or renewal level to use.

Support and renewal levels are created on the Support and Renewal Levels page.

Select one of the following options: 

• 1: Adds one support item at the transaction level for the sales order.
• Invoice Qty: The quantity of the support item and the renewal item is the same as the original line item. The unit price and extended price are calculated accordingly.

Select the support contract start date: 

• Transaction date: Uses the transaction date as the start date. Default.
• Beginning of current month:  Uses the 1^st of the current month as the start date. If the transaction date is the 1^st of any month, then the 1^st of the current month is the start date.
• Beginning of next month: Uses the 1^st of the next month as the start date. If the transaction date is on the 1^st, the transaction date is used, otherwise the 1^st of the following month is used.
• Rule of 15: If the transaction date is between the 1^stand the 15^th, uses the 1^st of the current month as the start date. If the transaction date is the 16^thor later, uses the 1^st of the next month as the start date.

Select the default support frequency for a billing schedule: Daily, Monthly, Quarterly, Semiannually, or Annually.

Select the default renewal frequency for a billing schedule: Daily, Monthly, Quarterly, Semiannually, or Annually.

Select whether to set the alignment date for a renewal item to be determined by the item group.

• Yes: The alignment date is set based on the item group.

When an item is added to a billing schedule, the alignment date is set to use the same date as the first existing item that belongs to the same item group. This feature works only when the billing frequency is annual.

• No: Does not set the alignment date for additional items to be the same as existing items. Default.

Select whether alignment date for a renewal item is determined by the date of the next unbilled period after the renewal starts.

• Yes: The alignment date is set based on the date of the next unbilled period after a renewal starts.

When this option is used with Align by item group, changes to the Alignment date on the Support and Renewal Process page are overridden, and when the invoice is created, the renewal date is recalculated based on the date of the next unbilled period after the renewal starts.

• No: The alignment date is based on the date of the current renewal period.

View example: 

A billing schedule has the following billing detail lines for an existing renewal item: 

• Item A January 01, 2020 - December 31, 2020 (invoiced already created)
• Item A January 01, 2021 - December 31, 2021 (invoice not created)

The default support and renewal start date is set to Beginning of next month with frequency set to Annual. On November 01, 2019, the invoice for the second billing schedule line is created: 

• Align to next unbilled is set to Yes 

The renewal is created for the period December 1, 2020 to December 31, 2021 (13 months). This renewal for the new item is extended to the next renewal period.

• Align to next unbilled is set to No 

The renewal is created for the period December 1, 2020 to December 31, 2020 (one month). This renewal for the new item is not extended past the current renewal period.

Select whether to copy the item serial number from the initial sales order line is copied to the corresponding billing schedule line:

• Yes: Copies the item serial number to the corresponding line in the billing schedule.
• No: Does not copy the item serial number to the billing schedule line.

Select to determine the method used for the CPI escalation calculation:

• Prior cpi: Uses the previous CPI index for the escalation calculation.
• Base cpi:  Uses the base CPI index for the escalation calculation.

For more information about the CPI calculation, see CPI Calculation.

Select how records are included in the list grid: 

• Start date: Records that have the billing schedule start date within the specified from/to date range appear in the list grid and are available for processing.
• End date: Records that have the billing schedule end date within the specified from/to date range appear in the list grid and are available for processing.

This value is the default value on the Invoice Creator page.

Select whether the general journal entries for unbilled revenue amounts are automatically posted: 

• Yes: Automatically posts the general journal entries for the unbilled revenue amounts.
• No: Does not post the journal entries for unbilled revenue amounts. You must manually post the journal entries.

Select the method you want to be able to use the short-term functionality with the unbilled revenue feature: None (default), Rolling periods, and Fixed year.

When None is selected, the short-term functionality is not used with the unbilled revenue feature.

If you choose Rolling periods or Fixed year, ensure to specify the default short-term unbilled revenue accounts on the Unbilled Revenue Setup.

The options selected become the default options when terminating a billing schedule or billing schedule line on the Mass Termination Processing or Terminate Schedule Lines pages.

When termination a billing schedule or a billing schedule line, select how the credit is applied: 

• Credit adjustment: Creates a credit adjustment for a billing schedule when a line is terminated. The credit adjustment appears in a future billing period for the billing schedule and automatically adjusts the invoice amount for the next billing period until the credit is finished being applied to the billing schedule.
• Issue credit: Creates a credit note when a billing schedule or billing schedule line is terminated.
• No credit: No credit adjustment or note is created upon termination of a billing schedule or billing schedule line. Available only when terminating a billing schedule using the No adjustment option.

Specify whether One time frequency items will give refund when terminated.

• Yes: Gives refund when terminated for one time items.
• No: Does not give refund when terminated for one time items.

Specify whether the prorate daily rate is used to calculate the refund.

• Yes: Uses the prorated daily rate to calculate the refund.
• No: Uses the default calculation method to calculate the refund.

Specify whether a separate deferral schedule is created for the credit amount when a billing schedule is terminated.

• Yes: Depending on the credit option selected, the following occurs: 
  • If the credit option is Credit Adjustment, the existing deferral schedule is not adjusted. Instead, a separate deferral schedule is created for the credit note. The credit note billing line is updated with the deferral values.
  • If the credit option is Issue Credit, the existing deferral schedule is not adjusted. Instead, a separate deferral schedule is created for the line being terminated.
• No: When a billing schedule is terminated, the credit adjustment line is added to the existing deferral schedule.

Displays the next number ID for a billing schedule.

The number sequences are automatically generated and assigned using the number sequence generation wizard. You do not need to change the number sequence unless you want to make manual changes on top of the generated number sequences.