Billing Contract

Overview of a Billing Contract

A Billing Contract is the result of a sale and is associated with a customer. The Billing Contract defines the billing relationship with the customer with key fields like type,

  • payment terms
  • billing frequency,
  • billing policy,
  • prorate unit,
  • contract start date.
  • refund policy
  • renewal settings

And many others

The Billing Contract also controls Invoice settings:

  • Invoicing language
  • Invoice Template
  • Discounts
  • and the Billing Automation Settings

Settings that are defined at the Global level can be overridden at Billing Contract level. The Billing Contract is the container for these items related to billing

  1. What will get Invoiced. This is defined in the Subscriptions, Non-Recurring Items and Services. The Billing Contract also represents the currency and the pricelist for products and subscriptions.
  2. When the invoices should be sent. This is defined by the billing contract dates and is visible through the Next Invoice Date field
  3. Who should receive the invoice through the Billing Contact, what the Invoice language, template should look like. Along with default email template

A customer can have more than one billing contract based on the settings like Billing Frequency and terms.

A Billing Contract can have one or more Subscriptions, Non-Recurring Items, or Billable services. To have an invoice generated through Work 365 a Billing Contract must exist. Every Subscription, Non-Recurring Item, and service should be associated with customer’s Billing Contracts.


A Billing Contract can have one or more Subscriptions, Non-Recurring Items, or billable services.

To generate and invoice through Work 365 a Billing Contract is needed. Subscription, Non-Recurring Item, and service should be associated with customer’s Billing Contracts.

A Billing Contract has associations with the following Work 365 Entities

Billing Contracts Statuses

Status(field)Status Reason(field)MeaningUpdated By
ActiveActive->DraftIf a contract is deactivated, and then reactivated, it will be set to a drafted state.System
ActiveActive->RenewedThe Billing Contract has been renewed due to the auto-renewal setting of the contract.System
ActiveActive->WaitingIf the Billing Contract is setup with a future start DateSystem
ActiveActive->ExpiredIf a Billing Contract is not renewed, and it exceeds the end date of the contract then the contract becomes expired.System
ActiveActive->ActiveThe Billing Contract is Active. Corresponds to current Billing Contracts that are active in Work 365. There are also Status Reasons associated with the Active StatusSystem
InactiveInactive->DiscontinuedChose this status to describe the relationship.User Selected
InactiveInactive->CancelledChose this status to describe the relationshipUser Selected

Billing Contract Fields

General tab

Field NameDisplayNameDescription
work365_billingcontract_nameName The name of the Billing contract
work365_billingcontract_typeTypeRecurring Contract or Item Based Contract
Account Related to the Billing Contract
work365_billingcontract_billingfrequencyBilling FrequencyBilling Frequency
work365_billingcontract_paymenttermsPayment Terms
work365_billingcontract_billingpolicyBilling PolicyThis field determines how and when customers are charged
work365_billingcontract_processrefundsProcess Refunds
work365_billingcontract_isdefaultIS Default In case there are multiple Billing Contracts for a customer Identify the Default
work365_billingcontract_producttypeProduct Type For reporting purposes. Additional Values can be added
work365_billingcontract_defaultpricelistDefault Price List Default Price List used for Subscriptions
work365_billingcontract_taxserviceTax Service Tax Calculation Service
work365_billingcontract_taxrategroupTax Rate Group
work365_billingcontract_startdateStart DateStart date of the Billing Contract
work365_billingcontract_enddateEnd DateEnd date
work365_billingcontract_nextinvoicedateNext Invoice DateWhen the next automatic invoice will be generated for the full cycle.
work365_billingcontract_nextinvoicedateAuto RenewIt indicates whether a billing contract will automatically be extended upon term expiry
work365_billingcontract_contracttermmnthsContract Term (Months)Number of Months the renewal will be extended on the Auto-Renew
work365_billingcontract_terminatedonTerminated OnThis represents the date on which this billing contract was terminated
work365_billingcontract_autosyncinvoiceAuto Sync InvoiceThis syncs the invoice to the accounting system configured with Work 365
work365_billingcontract_autochargeAuto ChargeAuto Charge the Invoice using the specified Payment Profile
work365_billingcontract_autosendinvoiceAuto Send InvoiceAutomatically send the invoice using the specified email Template and the Invoice Template configured on the contract
work365_billingcontract_paymentprocessorPayment ProcessorPayment Processor to be used with the specified Payment Profile
work365_billingcontract_autosendinvoicetemplateEmail Template [Auto Send Invoice]email template used for Auto-Send
work365_billingcontract_paymentprofilePayment ProfileDefault payment profile associated with this billing contract
work365_billingcontract_expectedacvExpected ACVExpected Annual Contract Value - Input value for reporting.
ACV calculations do not include discounts. ACV with discount will need to calculated manually.
work365_billingcontract_acvCurrent ACVCurrent Annual revenue calculated from all the Active Subscriptions
work365_billingcontract_mrrCurrent MRRCurrent Monthly Recurring Revenue calculated from Active Subscriptions. MRR calculations do not include discounts. MRR with discount will need to calculated manually.

Advanced Tab

Field NameDisplayNameDescription
work365_billingcontract_adminchargesAdministrative Charges (Fixed)Fixed Admin Charges. Used to upcharge an invoice. A fixed amount is added. Special Product can be used to offset credit card fees or processing charges
work365_billingcontract_adminchargesperAdministrative Charges (%)Percentage based Admin Charges. Used to upcharge an invoice. Special Product can be used to offset credit card fees or processing charges
work365_billingcontract_billingpolicyBilling PolicyAdvanced or Arrears based billing
work365_billingcontract_prorateunitProrate UnitDetermines the prorate strategy for invoicing- Monthly or Daily
LanguageLanguageLanguage used in the Invoice lines. Translates the Work 365 Text into the language like "Current Billing Cycle"
work365_billingcontract_activesubscriptionsActive SubscriptionsNumber of Active Subscriptions
work365_billingcontract_activeservicesActive ServicesNumber of Active Services
work365_billingcontract_activenrisActive & Unbilled NRIsUnbilled NRIs
work365_billingcontract_totalactivechildrenTotal Active Children
work365_billingcontract_indexationtypeIndexation TypeAnnual or Date based
work365_billingcontract_donotindexbeforeDo Not Index BeforeCutoff Date after which Indexation should be applied
work365_billingcontract_originatingsalesorderOriginating Sales OrderSales Order which resulted in the billing contract