Some firms issue monthly bills twelve times a year issuing one
invoice for each month, and some firms issue an invoice 13 times a
year as outlined in the The 28 Day Billing
Cycle.
The Monthly Billing Cycle follows the calendar months
regardless of the length of the month.
EXAMPLE: Contract 455 went out Jan. 14th at 10 am. 1st monthly invoice: Billed from Jan. 14th at 10am to Feb. 14th at 10am 2nd monthly invoice: Billed from Feb. 14th at 10am to Mar. 14th at 10am 3rd monthly invoice: Billed from Mar. 14th at 10am to Apr. 14th at 10am
The software easily handles the differing lengths of the months
- i.e. February has fewer days than March.
The setup for monthly billing (rather than 28 days) is in the
Calendar.
Usually the Rental Rate Structure has the monthly rate
set with the number of hours equal to 28 days.
28 days is then used as a basis for the calculation, which
compensates for the irregular number of days in the calendar month
that result from a "monthly" charge.
To make each month into a uniform period for billing purposes, the
first 28 days are counted in each month beginning with the contract
Cycle Billing Day Code ignoring any days over 28 in longer
months, before starting the billing day count for the next month on
the same Cycle Billing Day Code.
This allows all months regardless of length to be billed at a
constant amount through the year.
Note: If the Monthly Bill Cycle Charge First 28 Days flag is not set in the Support Application Parameters, then the 28 day count always begins at the first of the calendar month, so that it is always the 29,30,31 days that are not considered chargeable days in the billing calculation, regardless of the starting Cycle Billing Day Code on the contract.
If the rental is started half way through the month (e.g. April
14th), the customer would be issued a partial billing up to the
beginning of the next month (e.g. an invoice for April 14th to May
1st).
After that the customer would receive a monthly invoice at the
beginning of each month, (e.g. from May 1st to June 1st, then from
June 1st to July 1st).
Note: This approach to issuing monthly invoices requires high
operator involvement to manually partial bill to the beginning of
next month.
Every new contract must be individually billed a catch-up invoice,
before the contract can be integrated with the ongoing
contracts.
Unless your business demands that this approach to billing be
enforced, we DO NOT RECOMMEND this approach because it is so time
consuming and does NOT result in additional rental revenue in the
long run.
To achieve this type of cycle billing, follow these steps:
Note: When billing the contract, you will be prompted to assign a NEW Cycle Billing Day Code to the contract. Be sure to type in Code 1 so that the contract will be eligible for the next monthly Cycle Billing run automatically.
Note: If your firm uses a combination of 28 day and monthly billing periods to meet customer requirements, refer to Default Billing Method in the Calendar to setup the billing day codes correctly, and activate the Respect Customer Cycle Bill Interval option in the Company Billing Parameters so that individual customers can be flagged with their billing preference in Customer Billing Settings.
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