Recurring contract billing parameters
Use the Recurring contract billing parameters page to set up the default values for billing schedules that are created in Recurring contract billing. (Recurring contract billing > Setup > Recurring contract billing parameters). All billing schedules that you create will initially use these default values. However, you can change the values for each billing schedule as you require.
General tab
On the Recurring contract billing parameters page, on the General tab, in the Billing schedule group field, select a billing schedule group. For information about how to set up billing schedule groups, see the Billing schedule groups section later in this article.
In the Termination type field, select how the final invoice is calculated when a billing schedule is terminated:
- Adjust schedule – Cut off the billing schedule on the termination date, change the status of the schedule to Last billing, and adjust the associated deferral schedule by reversing the amount that no longer must be recognized. If the billing start date is after the termination date, the remaining billing periods are removed.
- Bill remaining – Add any remaining amounts in the billing schedule to the termination period, change the status of the schedule to Last billing, and update the deferral schedule. If the billing start date is after the termination date, the total amount of all remaining billing periods is added to the billing period, and the remaining billing periods are removed.
- No adjustment – Terminate the billing schedule on the termination date. No adjustments are made to the billing schedule.
In the Unique schedule type field, select None to specify that customers are limited to a single billing schedule. Select Per customer or Per end user to specify that customers are limited to a unique schedule.
Set the Align to month option to Yes to align the billing schedule detail lines with the end of a month when a billing schedule is created or updated. Set it to No to use incremental dates.
Set the Prorate partial periods option to Yes to allocate billing amounts based on the number of days in the period. Set it to No to have an equal amount in each billing period, regardless of the number of days.
If you set the Prorate partial periods option to Yes, set the Proration method field to Daily to distribute the amounts based on the number of days in the period. Set it to Monthly to have an equal amount every month.
Specify whether newly created billing schedules are on hold by default.
Note
To remove the hold on a billing schedule, the user must be part of a user group. Select Remove hold user group override to set up a user group where the Allow remove hold option is enabled.
In the Invoice transaction type field, select the default invoice transaction type for new billing schedules.
Set the Align deferral to billing option to Yes to align the corresponding deferral schedule so that it uses the same dates as the billing schedule. Set it to No to have different dates.
If you're using the revenue split feature, set the Automatically create revenue split option to Yes when items are added to a billing schedule. The Revenue split checkbox will automatically be selected on the billing schedule line if the item is set up as a revenue split item. Set the option to No if you want to manually select the Revenue split checkbox.
Set the Customer split option to Yes to allow a billing schedule to be billed to different customers. When set to Yes the Customer split option is available on the billing schedule header and billing schedule line.
Set the fields for sales order creation:
Invoices can be consolidated by period, customer, or item. Any combination of Yes and No values can be set. Invoices can also be split by item group.
The following posting options are available for invoices:
- Create sales order – Create only the sales order.
- Show Posting invoice – Invoice the sales order, and open a page where you can manually post the invoice.
- Create fee text invoice – Select this option if you're using free text invoices.
- Post invoice automatically – Invoice the sales order, and automatically post it.
Set the Add billing dates to item description option to Yes to add a description that includes the billing start date and end date.
Set the Exclude zero consumption option to Yes to exclude billing schedule lines that have no consumption. Set it to No to include those lines on the sales order.
Set the Don't print child items option to Yes if you don't want to print the child items of a revenue split on the sales order. Only the parent item will appear on the invoice. If the net amount of the (hidden) child items is a non-zero sum, the net amount of the parent line shows a summary of the child lines. Set the option to No to print all child items below the parent item on the sales invoice.
Set the fields for support and renewals:
Set the Auto enable support and renewal option to Yes to automatically use the support and renewal feature on a sales order.
In the Support and renewal level field, select the default support and renewal level.
In the Support and renewal quantity field, specify the support and renewal quantity.
In the Default support and renewal start date field, specify the date to use as the default start date for support and renewals:
- Transaction date – Use the transaction date as the start date.
- Beginning of current month – Use the first of the current month as the start date.
- Beginning of next month – Use the first of the next month as the start date. If the transaction date is the first, the first of the current month is used.
- Rule of 15 – Use the first of the current month as the start date if the transaction date is between the first and fifteenth of the month. If the transaction date is the sixteenth or later, use the first of the next month as the start date.
Set the Include discount in calculation option to Yes to include the discount amount in the support or renewal amount. Set it to No to exclude the discount amount.
In the Support frequency and Renewal frequency fields, select the frequency to use when support and renewal items are added to a billing schedule: Daily, Monthly, Quarterly, Semiannually, or Annually.
Set the Align by item group option to Yes to align the start and end dates of new items to existing items, based on the item group.
Set the Align to next unbilled period option to Yes to determine the alignment date for a renewal item based on the date of the next unbilled period after the renewal starts.
Set the Copy serial number option to Yes to copy the item serial number from the initial sales order line to the corresponding billing schedule line.
If you're using escalation on the billing schedule, select the method that is used for the consumer price index calculation.
Set the Track price change option to Yes if you want a record of price changes on billing schedule lines. If a billing schedule line is manually changed from standard to flat, and a new price entered, audit information is tracked on the billing schedule line. Set the option to No if you don't want to track these changes.
Specify whether records are filtered by start date or end date by default on the Generate invoice page.
If you use the Unbilled revenue feature, specify the options that are used:
- Set the Post general journal automatically option to Yes if you want the general journal to be created and posted at the same time. Set it to No if you want to create the general journal and then manually post it.
- In the Default journal name field, select the default journal name to use when the general journal is created.
- In the Short-term unbilled method field, select the short-term unbilled method, if you're using one. If you select None, the short-term functionality won't be used with unbilled revenue. Select Rolling periods to always use 12 months or Fixed year to use the remaining fiscal year.
Specify the options that are used when a billing schedule and its lines are terminated:
- Issue credit – Create a credit note when a billing schedule or billing schedule line is terminated.
- Credit adjustment – Create a credit adjustment for a billing schedule when a line is terminated. The credit adjustment appears in a future billing period for the billing schedule. The credit adjustment will update the invoice amount for the next billing period until the credit has finished being applied to the billing schedule.
- No credit – Don't create a credit adjustment or a credit note when a billing schedule or billing schedule line is terminated. This option is available only when the No adjustment option is used to terminate a billing schedule.
When the option One time can terminate with refund is set to No and a billing schedule with a billing frequency of One time, the status of the billing schedule line changes to Terminated once the billing schedule is invoiced. This billing schedule can't be terminated and no credit can be issued. When One time can terminate with refund is set to Yes the billing schedule line with a billing frequency of One time will have an Active status after the billing schedule is invoiced. The billing schedule line can be terminated and a refund processed.
The Prorate daily option set in parameters will default to the mass termination page and the billing schedule header and line Terminate dialogs. It can be changed during the termination process. When set to Yes any refund amount will be calculated using a daily rate. When set to No it will credit based on the termination date and billing frequency. For example, if using Monthly frequency and the billing amount was $100 per month, the credit amount is in increments of $100. If the billing frequency is One-time the credit amount is $0.00. You must have Prorate daily set to Yes to get a refund for One-time billing frequency.
Set Create deferral for credit option to Yes to create a new deferral schedule if crediting an existing deferral schedule. Leave the option set to No to create the credit on the existing deferral schedule.
Sequence number tab
Use the Sequence number tab on the Recurring contract billing parameters page to set the default value for billing schedule numbers. The default values are set up on the Number sequences page (Organization administration > Number sequences > Number sequences).
Set up billing schedule groups
Use the Billing schedule group page to create a billing schedule group for Recurring contract billing. (Recurring contract billing > Setup > Billing schedule group). When a new billing schedule is created, and a billing schedule group is applied to it, the values that are defined on the Billing schedule group page are entered as default values for the billing schedule. You can change any of the default values for the specific billing schedule that you create. You can set up multiple billing schedule groups and then assign one of them as the default billing schedule group on the Recurring contract billing parameters page.
To create a billing schedule group for Recurring contract billing, follow these steps:
On the Billing schedule group page, select New to create a billing schedule group.
In the Billing schedule group field, enter a unique identifier.
In the Description field, enter a description.
In the Billing frequency field, specify how often the billing schedule is billed to a customer: One-time, Daily, Monthly, Quarterly, Semiannually, or Annually.
In the Billing interval field, enter a billing interval. For example, set the Billing frequency field to Monthly and the Billing interval field to 2 to bill every other month.
In the Pricing method field, select the default pricing method for items on the billing schedule:
- Standard – Calculate the unit price based on the total quantity that is entered, and use the standard pricing from the Released products page in Product information management.
- Flat – Apply a flat price that is entered on the billing schedule line.
- Tier – Calculate the unit price by using a fixed quantity at different pricing brackets. Each tier must be filled before moving to the next pricing bracket.
- Flat Tier – Calculate the unit price by using a fixed quantity and extended price amounts for different pricing brackets. The price that is charged in a billing period uses the extended price that corresponds to the tier where the billing quantity exists.
In the Item type field, select the type of item for the billing group:
- Standard – Select this value if the quantity is static.
- Usage – Select this value for metered or consumption-type items. If you select this value, set the Usage reading option field to Reading to enter the value (reading) for a billing period on a meter or device. The consumed value will be calculated based on the previous billing period and the current reading that you enter.
- Milestone – Select this value to use the Milestone billing functionality. If you select this value, in the Milestone template field, select the milestone template if you're using one.
- Consumption – Select this value to enter the value that is consumed for a billing period.
Set the Invoice separately option to Yes to create a combination of consolidated invoices and separate invoices for the same customer. For example, a customer has five billing schedules. Three of them will be consolidated on a single invoice, but each of the other two requires a separate invoice. Set the option to No to create only one consolidated invoice for the customer.
Set the Renew automatically option to Yes to automatically renew the recurring billing schedule for the next billing period when the invoice is created. Set it to No to manually renew the billing schedule. In the Lines to add per renewal field, specify how many lines to add for each renewal.
Set the Escalation option to Yes to apply escalations (price increases) to the billing schedules associated with this billing schedule group.
Item group setup
Use the Item group setup page to define item groups for support and renewal proration, alignment dates for renewal items and the Top billing functionality. Recurring contract billing > Setup > Item group setup.
- Prorate support and renewal - Select whether to prorate the support or renewal amount based on the dates. Select the checkbox to prorate the support or renewal amount for items in the item group. When the checkbox isn't selected, the support or renewal amount for items in the item group isn't prorated.
- Adjust renewal dates - Select whether the alignment date for a renewal item is to be determined by the item group. Select the checkbox to update the renewal start and end dates based on the specified alignment date.
- Number of top lines - Specify the top most expensive items to charge on an invoice for the specific item group for the Top billing functionality. This number must be zero (0) or a positive value. A zero-value indicates that the top billing feature isn't used. If used, this number typically ranges from zero to six items.
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