Contract Billing in Arrears

Use the Bill In Arrears contract billing option to calculate the amount to invoice based on the time between the last billing and the user-selected Bill Through date. The primary use of this feature is to improve the ability of the system to handle contracts that are billed in arrears on a regular basis (such as daily, weekly, or monthly).

Process Flow

Throughout the Contracts forms, there is a Bill In Arrears option for use with contracts. If the Bill In Arrears check box is selected on the Contract Parameters form, it becomes the default value on each new contract. You can also set billing in arrears as a default by selecting Bill In Arrears on the Contract Service Types form. If you do not set billing in arrears as a default, you can still set specific contracts to bill in arrears by selecting the check box on these forms:

Contracts
Contract Templates
Rental Counter
New Contract

In the event that the contract is a different value than the line, and the Billing Type is Fixed, the Contract header Billing Frequency is used upon invoicing, overriding the value on the Contract Lines form.

Note: The Bill In Arrears and Prorate to End of Billing can not be selected on the same contract.

Example

A contract of Billing Type Calculated is set up with two lines:

The first has a Last Invoice Date of 1/17/2009. The rate is set to $30 a month. The Billing Frequency is set to In Arrears.
The second has a Last Invoice Date of 2/1/2009. The rate is $35 a week. The Billing Frequency is set to In Arrears.

When contract invoicing runs on 2/15/2009, the system calculates the daily rate, and the invoice amount for each contract line is as follows:

The first line is $28 ($30 a month value minus 2 days).
The second line is $75 ($35 for 2 weeks plus 1 day.)