Table of Contents
Updated by Alex Moore
Read Time: 6 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 set-up.
If enabled, will prevent any accounts which fall under the Billing Default as configured from being charged taxes.
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.
This drop down menu will display all the created account types in your instance, allowing you to add one or more account types which will fall under the umbrella of this default Billing Setting.
Bill Days, Due Days, Grace Days, Auto-Pay Days
The Fixed Bill Day option means that the bill day for every customer on the billing default being configured. In the event that a fixed bill day is selected, and a customer is on-boarded midway through the bill cycle, the amount to be billed will be prorated to the activation day.
Bill Day: This setting only appears if the Fixed Bill Day option is enabled, and determines the day of every month when billing will run.
Due Days: The Due Days will determine the number of days between the selected "Due Day" and when the invoice amount is due.
Grace Days: The Grace Days determine how many days after the due day will be granted until non-payment renders the account delinquent.
Auto Pay Days: The Auto-Pay Days determines the day of the month the instance will run against the payment information provided by the customer.
Print Invoice: The print invoice toggle will automatically send generated invoices to be printed.
Invoice Day: The Invoice Day field allows you to set a specific day to generate the invoices every month. If the Invoice Day is blank, the invoice day will be the same as the Billing Day. If it is set to the same number as the Billing Day, then the Invoice and Billing Days will be staggered by a month.
Auto Pay Day: The Auto-Pay day determines whether the Auto Pay Days selected earlier will be based on the bill day, or the invoice day.
Due Day: The Due Day determines whether the Due Days selected earlier will be based on the bill day, or the invoice day.
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 settings should not be used with recurring services that have a multi-month billing scheme.
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 settings determines the number of days an invoice can remain delinquent on an account until the status on the account changes automatically.
Delinquency Account Status: This setting controls what status gets set after the Delinquency days have elapsed.
Delinquency Removal Account Status: This setting controls what status accounts enter after having paid their past due balance and leaving delinquency status.
Billing Default Examples
Same Month Billing
In this example, we have a completed Billing Defaults view designed to bill and invoice customers the same day, allowing consistent billing across the entire customer space on your instance at a predictable day.
With these parameters, the following will happen:
- Monthly, the account will receive a statement of the account balance. This default being set will only apply to Residential Account types, not any other.
- As Fixed Bill Day is enabled, the Bill Day option is available. We'll set this to 15
- Based on the configured settings, the billing will run on the 15th of the month. If auto-pay is enabled on the account, then auto-pay will run on the 15th of the month as well. Then, on the 25th day of the month, the invoice becomes due. After another 5 days (the 30th of the month, or in the case of February, it would extend to the 2nd or 3rd of the following month), the invoice would become delinquent if not paid.
- With the delinquency settings configured, and following up on the Grace days configured below, the account will switch to an inactive status after 15 days of the invoice being delinquent. Once paid in full, the account will switch back to active, and resume receiving service.
What this looks like on the account
Next Month Billing
In the following example, we'll examine a set of billing parameters which will trigger an invoice for the next month, rather than the current one. The use-case for next month billing is to get the invoice to the customer in advance of the amount being due.
Next month billing (also known as pre-paid billing) is generally used as a transition from bill-by-mail, where the invoice would be sent and paid by mail rather than using auto-pay.
With these parameters, the following chain of events will occur:
- On the 15th of the month, billing runs to tally the charges.
- The invoice will be generated on the 15th for the 1st of the following month. For example, the billing would run on the 15th of October and generate an invoice which is due on the 1st of November.
- The payment will be due on the 1st of the month, the same day for which the invoice is generated.
- 15 days after the due date, if the payment has yet to be made, the invoice will become delinquent.
- 7 days after the invoice has become delinquent, the account will be switched to an inactive status. Once paid in full, the account will switch to an active status.
What this looks like on the account
Activation Day Billing
In this example, we'll be creating a billing default which will result in your customers being billed monthly starting from the day their account went from an inactive status to an active one. Unlike the previous two examples, activation day billing doesn't make use of fixed-day billing, and as a result the billing cycle for all your customers may vary.
Activation day billing is primarily used to spread out both cash flow and payment specific support requests throughout the month.
Based on these settings, the following chain of events will occur:
- The Bill day will be dynamic, based on the date the day the customer's account was activated
- The invoice will be generated on the same day of every month depending on when the account was first activated. For example, a customer who was activated on the 13th of June will have their next invoice generated on the 13th of July.
- Any accounts with an automatic payment method on file will trigger a payment upon invoice creation.
- 10 days after the invoice is generated it will be due.
- 5 days after the due date, if the payment has yet to be made, the invoice will become delinquent.
- 15 days after the invoice has become delinquent, the account will be switched to an inactive status. Once the delinquent invoice is paid in full, the account will switch to an active status.