Billing Contract is a result of a sale and is associated with a customer. A Billing Contract the record that results in an Invoice. A customer can have one or more Billing Contracts.
A Billing Contract can have one more Subscription. To have an invoice generated through Work 365 a Billing Contract must exist. Every Subscription should be associated with a Billing Contract.
Billing Contracts in have 2 main statuses- Active and Inactive. These states need to be changed manually by the tenant.
- Active: Corresponds to current Billing Contracts that are active in Work 365.
- Inactive: Corresponds to the Billing Contracts that are expired or terminated.
- Name: Use a Naming Convention. E.g. [AccountName]-[Type of Service]-[Billing Freq] e.g. Blue-Yonder-CSP-Monthly
- Customer: Select the Customer Name
- Payment Terms: Payment Terms match the standard payment terms that are available on the Invoice entity.
- Process Refunds: Setting that aligns with the Global setting or overrides the Global setting to enable refunds on Work 365 invoices. See Managing Refund Payments for details.
- Primary Billing Contact: Primary customer contact on the Billing Contract. Automatically generated invoices can be auto-sent to this contact.
- Secondary Billing Contact: Secondary customer contact on the Billing Contract.
- Expected ACV: Refers to the expected Annual Contract Value, which is the total sum of the subscription selling price at any given time for the full 12 month period.
- Invoice Template: A selected invoice template in this field will override the template defined on the Configuration Settings for invoicing.
- Additional Invoice Recipients: Notification field for auto-generated invoices. Any additional contacts that need notification of the invoice can be added here as an email. Emails are separated by commas.
- Currency: Billing Currency for the Billing Contract.
- Billing Frequency: Work 365 supports Monthly, Quarterly, and Annual Terms.
- Product Type: Available Product Types are CSP, Managed Service, and Support Contract. The Product Type doesn’t restrict the Subscriptions or Billing processes.
- Discount %: This is the discount percent that is applied at the overall Invoice level.
- Is Default: If there are multiple Billing Contracts then one of them is the default. When subscriptions are created for an Account from the Portal the Default Billing Contract is used for the new Subscription.
- PO Number: This is a reference field that is populated when the Invoice is generated.
- Opportunity Ref: This is a reference field to the won opportunity for the Billing Contract.
- Agreements: a customer agreement that is tagged on the Billing Contract (Example: Microsoft Cloud Agreement). These agreements are found in Work 365 > Agreements.
- Start Date: The date the service was started. This is the date used to determine the services that are included in the invoice. The subscriptions with an Effective Start Date on or before the Start date will be included in the Billing Cycle.
- End Date: The date the Agreement and Billing need to stop. If the Billing Agreement has no set end date and is on an Auto-Renewal, pick a date out into the future.
- Effective v3.0 of Work 365, any new billing contracts created will have a 1-year annual end date by default. To enable a longer renewal term, enable the auto-renew field and enter the number of months for the contract term. The End Date will update automatically the day of the auto-renewal and will extend the end date out based on the months selected for the contract term.
- Next Invoice Date: The invoice date is locked field. The Invoice Date is one day after the Start Date of the Billing Contract. If the Billing Contract Start Date is Jan 1, the Invoice Date will be Jan 2nd. The invoice generated on Jan 2nd will include the subscriptions that were created as of the Start Date on Jan 1st. The Invoice date, however, will show Jan 1st.
- Terminated On: The date the billing contract will automatically terminate and become. When the terminated on the date has arrived, the billing contract will become inactive and will no longer be able to generate invoices.
- Auto-Renew (Effective v3.0 of Work 365): after upgrading to v3.0, any new billing contracts created will have a 1-year annual end date by default. By default, this field is set to No. In order for billing contracts to renew, the Auto-Renew field must be set Yes.
- To enable a longer renewal term than the default 12 months, enter the number of months desired for the contract term. The End Date will update automatically the day of the auto-renewal and will extend the end date out based on the months selected for the contract term.
- Current MRR: Monthly Recurring Revenue
- Calculates the total subscription value on a month to month basis.
- Current ACV: Annual Contract Value
- Calculates the total subscription value on an annual basis.
- Active invoices: Invoices reflected on the Billing Contract that has not been closed as being Paid or Canceled.
- Tax Service: The defined tax service for the billing contract. See tax services for more details.
- Tax Rate Group: The defined tax rate group on the billing contract. See tax rate groups for more details.
- Auto-Sync Invoice: Setting that enables the auto-sync of an invoice with the Accounting System Connector when an invoice is automatically generated.
- Auto-Send Invoice: When this option is selected the invoice will be automatically sent to the Billing Contact listed on the Billing Contract.
- Auto Charge: Setting that enables the auto charge of an invoice when the invoice is automatically generated. Enabling this field requires at least one payment profile on the customer’s account. See Creating a Payment Profile for details.
- Payment Profile: The payment profile which will be used to auto-charge invoices that are automatically generated. If no Payment Profile is entered, then the default Payment Profile will be used to charge the invoice.
When all Billing Automation settings are enabled on the billing contract, this is the automation workflow:
- Invoice is generated
- Invoice is auto-synced to the accounting system
- Invoice pdf is generated (if not already downloaded from accounting system)
- Invoice email is sent
- Invoice is auto-charged
Use the Notes and Activity Sections of the Billing Contract to record Notes and any tasks that are associated with the Billing Contract.