Contract Billing in Arrears
Process Flow
The Billing Frequency field (on the Contract Parameters form, Contracts form, and Contract Lines form) contains a In Arrears option. If the value is chosen on the Contract Parameters form, it becomes the default value on each new contract. If the value is selected on the Contracts form, it becomes the default value on each new line.
For 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.)
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.