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Billing Defaults

Alex Moore Updated by Alex Moore

Read Time: 10 mins

The Billing Defaults page allows you to configure a set of billing instructions for specific account types, allowing fine control for each account type created as part of the billing setup. When a new account is created, the billing parameters for that account will be automatically set to any billing defaults where that account type is listed.

If you change the billing defaults after an account is created, that account will still have used the old billing defaults to generate its settings. You will still need to update account billing settings separately if you wish to change behavior for existing accounts.
If the account type is not listed on a unique secondary billing default, it will apply the "default" billing defaults. You must set up a primary billing default.
If you need to add any custom fields to a customer's invoice, you can do that from the Company Setup page

Billing Default Form Overview

Tax Exempt

If enabled, will prevent any accounts which fall under the Billing Default as configured from being charged taxes.

Bill Mode

This drop-down menu can be switched between Invoice and Statement. An invoice in Sonar will display only the current amount due, while a statement will show all line items and any prior unpaid balance.

Account Type

This drop-down menu will display all the created account types in your instance, allowing you to add one or more account types that will fall under the umbrella of this default Billing Setting.

Bill Day Mode, Bill Day, & Invoice Day

The Bill Day Mode option allows accounts to auto inherit its Bill Day or Invoice Day based on the setting.

The Bill Day is the day that transactions will generate and an invoice will be sent to the customer. The Invoice Day is the day that the service period begins for an invoice. For example, if we have a bill day of 15 and an invoice day of 1, that means on July 15 we will generate an invoice for the service period of August 1 to August 31. On August 15 the account will generate the invoice for September and so on.

Anniversary Bill Day can be used if you want the day an account is activated to become the Bill Day for that account, then add X number of days to this value to set the Invoice Day. A newly activated account will create an initial invoice that includes a prorated partial month as well as a complete month of service.

Anniversary Invoice Day will set the Invoice Day based on when the account is activated then set the Bill Day X number of days backwards from the day the account is activated. A newly activated account will create an initial invoice for one complete month then create the next invoice.

Either Anniversary Bill Day or Anniversary Invoice Day can be used where the Account Activation Day field is left blank. This will result in accounts that generate an invoice for the day they are activated then create a new invoice for the next month on that day.

Fixed Bill Day can be used if you want all accounts to bill on a specific day. Manually setting the Bill Day and Invoice day here will result in newly activated accounts creating an initial invoice that is a prorated partial month.

Bill Day Mode is a field that only exists before an account is activated in order to automatically stagger and set it's Bill Day and Invoice Day. Once an account is activated, this field disappears. Bill Day and Invoice Day can still be set manually once an account has been activated.

Due Days, Grace Days, Auto-Pay Days

Due Days: The Due Days will determine how many days later payment for an invoice is due. If the Due Day is set to 'Billing day', the invoice will be due that many days after the invoice generates. If the Due Day is set to 'Invoice Day', the invoice will be due that many days after the invoice date.

For example, if we have a bill day of 15 and an invoice day of 1, that means on July 15 we will generate an Invoice for the service period of August 1 to August 31. If the Due Days is set to 0 and the Due Day is set to 'Billing day' this invoice will be due for July 15. If the Due Day is set to 'Invoice Day', the invoice will be due for August 1.

Grace Days: The Grace Days determine how many days after the due day will be granted until non-payment renders the account delinquent.

If Grace Days is set to 0, this will make the account delinquent the same day that the invoice is past due.

Auto-pay Days: The Auto-pay Days will determine how many days later any payment methods set to automatic will first attempt a payment. If the Auto Pay Day is set to 'Billing day', the invoice will first attempt payment that many days after the invoice generates. If the Due Day is set to 'Invoice Day', the invoice will first attempt payment that many days after the invoice date.

For example, if we have a bill day of 15 and an invoice day of 1, that means on July 15 we will generate an Invoice for the service period of August 1 to August 31. If the Auto-pay Days is set to 0 and the Auto Pay Day is set to 'Billing day' this invoice attempts its first auto pay on July 15. If the Auto Pay Day is set to 'Invoice Day', the invoice will attempt its first auto pay on August 1.

Invoice Options

Print Invoice: If enabled, this will include any accounts in the print invoice batch. This will also generate a printed invoice fee, if one is enabled in the billing settings.

Months to Bill: This sets the number of months to bill for this billing default. What this means is that each time billing runs, it will run for X months and then not run again until the X months have passed.

This setting should not be used with recurring services that have a multi-month billing scheme.

Delinquency Options

Switch Status After Delinquency: If this setting is enabled and the customer becomes delinquent on their due amount (does not pay the invoice amount within the Grace Period), this option will switch their status to a delinquent one, set in the next few drop-downs.

Days of Delinquency For Status Switch: This setting determines the number of days an invoice can remain delinquent on an account until the status on the account changes automatically; a "0" here will cause it to change immediately upon delinquency, whereas a "1" would result in a 1-day delay, "2" in a 2-day delay, and so on.

Delinquency Account Status: This setting controls what status gets set after the Delinquency days have elapsed. Generally, people will set the account to a non-activated status that suspends billing and shows the account as in arrears.

Delinquency Removal Account Status: This setting controls what status accounts will enter after having paid their past due balance and leaving delinquency status. Most of the time, this will be set back to 'Active' if enabled.

Billing Default Examples

To test out different billing settings within your Sonar instance, try out our interactive Billing Calculator here.

Monthly Billing Customers on the 1st

In this example, the Billing Defaults are set for Fixed Bill Day Mode - Bill Day is the 15 and Invoice Day is the 1.

Bill Day is set for 15. The Invoice Day is 1. The invoice will generate on the 15th with the service period of the 1st to the end of the month. Example: On July 15th, the invoice will generate and it will be for the service period of August 1st to August 31st.

Due Days is set for 1; add this to the Invoice Day or Bill Day to get the Due Date. Example: If the invoice is generated on July 15th, the Invoice Day is 1 and the Due Days is based on Invoice Day, the Due Date will be August 2nd.

Auto-Pay Days is set for 0; add this to the Bill Day to get the Auto-Pay date. Example: If the invoice is generated on July 15th and the Auto-Pay Days is set to Bill Day, the Auto-Pay will run on July 15th.

Grace Days is set for 5; add this to the Due Date to determine when the account will be considered delinquent. Example: If the invoice is generated on July 15th and the invoice is past due starting August 2nd, the account will become delinquent after August 7th.

Anniversary Bill Day with Billing Day same as Invoice Day

In this example, the Billing Defaults are set for Anniversary Bill Day with 'Days After The Account Activation Day' left blank.

Anniversary Bill Day and Invoice Day are set for activation day. The 'Days After the Account Activation Day' is left blank. The invoice will generate on the activation day with the service period starting when the account is activated. Example: On July 15th, the invoice will generate and it will be for the service period of July 15th to August 14th.

Due Days is set for 1; add this to the Bill Day to get the Due Date. Example: If the invoice is generated on July 15th, the Due Date will be July 16th.

Auto-Pay Days is set for 0; add this to the Bill Day to get the Auto-Pay date. Example: If the invoice is generated on July 15th, the Auto-Pay will run on July 15th.

Grace Days is set for 5; add this to the Due Date to determine when the account will be considered delinquent. Example: If the invoice is generated on July 15th and the invoice is past due starting July 18th, the account will become delinquent after July 23rd.

Switch Status After Delinquency is set for 15 days. The account will remain delinquent for 15 days and then switch to the 'Delinquency Account Status'. Example: If the invoice became delinquent on July 24th, the account would move into an 'inactive' status on August 8th.

Anniversary Day Invoice Day: Invoice Day same as Activation and Generates the Bill 7 days prior

In this example, the Billing Defaults are set for Anniversary Invoice Day with 'Days Before The Account Activation Day' set to 7.

If an account is set to have activation day billing as well as an initial invoice generated upon activation (the "Generate Invoice on Account when First Activated" field is enabled under Settings menu > Billing > Billing Settings), you will also need to have the "Prorate Account Status Change" field enabled (under Settings menu > Billing > Billing Settings).

If the other settings are in place but the "Prorate Account Status Change" field is not enabled, the invoice will not be generated until the next billing per

Anniversary Bill Day and Invoice Day are set for activation day. The 'Days After the Account Activation Day' is left blank. The invoice will generate on the activation day with the service period starting when the account is activated. Example: On August 9th it was activated, the invoice will generate and it will be for the service period of August 9th to September 9th.

After Activation:

Bill Day is set for 2 and next Bill Date is September 2, 2021; as the activation date of August 9th minus 7 days is 2. The bill day is 2.

Invoice Day is set for 9; as the activation service period is the 9th to 8th.

Due Days is set for 1; add this to the Invoice Day to get the Due Date. Example: If the invoice is generated on September 2nd for the Service Period of September 9th to October 8th, the Due Date will be September 10th.

Auto-Pay Days is set for 0; add this to the Invoice Day to get the Auto-Pay date. Example: If the invoice is generated on September 2nd for the Service Period of September 9th to October 8th, the Auto-Pay will run on September 9th.

Grace Days is set for 5; add this to the Due Date to determine when the account will be considered delinquent. Example: If the invoice is past due September 11th the account will become delinquent after September 16th.

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