Hi
Im working with prospect usecase where I need to show how SB will be able to process a 'catchup bill'
SCENARIO Explained
- Consider a sample customer with a monthly music subscription charge of £30, to be billed monthly in advance.
- For customers that go live before the 15th of a month, prospect charges for the full month in which they go live. For customers that go live after the 15th, charges are not incurred until the 1st of the following month.
- In this case, assume the customer's installation went live on 12th September, therefore they should be charged £30 for the month of September.
- Prospect currently generates its recurring invoices 1 month and 1 day in advance of the billing period. For this customer, the first recurring invoice run would therefore be triggered on 30th September covering the period from 1st to 30th November. This means that:
- a "catch-up" invoice for £60 is required at the end of September to bill for the two months from 1st September to 31st October, in addition to the recurring invoice amount of £30 for the month of November;
- the £30 in recurring revenue for November needs to be deferred, and recognised in November.
- Currently, prospect produces two separate invoice documents (one for the catch-up period and one for November, in this example). In future, a single invoice could cover the whole period, provided the ERP system can recognise the revenue in the right periods (i.e. catch-up amount recognised in the current month and advance payments recognised in the relevant time period). SAP Subscription Billing
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