Billing Contract Types
Billing Contracts
There are two types of invoicing processes based on the “Type” of the billing contract. The selected type determines which kind of invoicing process is used for billing on the contract. There are 2 types of contracts:
Recurring:
It uses the billing cycle of the billing contract for invoicing.
Regardless of the subscription effective date, the system would prorate to match the cycle of the contract
Item-Based:
It uses the billing cycle of the subscription(s) for invoicing.
The subscription effective date(s) determine the billing cycle(s) which will be invoiced on the contract.
Comparison of Billing Contract Types:
| Behavior | Recurring | Item Based |
|---|---|---|
| Dates | Has a Start and End Date | No End Date |
| Schedule | Billing Schedules are maintained at the Contract level. | Schedules are maintained at the subscription level. Each Subscription will have its own schedule |
| Frequency | Supports All | Supports All |
| Prorate Behavior | Prorates subscriptions to align with the contract. All Subscriptions are prorated to line up with the contract | No Prorate at the Contract level |