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            How to set up Pro-Rated Billing / Inception Billing

            BillFin can do automatic proration for partial fees for an account's first billing period.  We call this inception billing.  

            If you bill in advance, BillFin handles this opening period's fee by adding it as an adjustment to the first full period's fee.  This means for an account opened in June, you would not see the account get billed in Q2 (for quarterly) or June (for monthly).  Rather you would see the account billed in full for Q3 with an additional fee, an adjustment, for the Q2 fee prorated just for the days managed in Q2.  To setup an account to do this, you simply need to add a Start Billing Date to the account. See provided steps on how to do that below.  Please let me know if you have any questions.

            If you bill in arrears, BillFin handles this opening period's fee by simply prorating for actual days managed.  This means for an account opened in June, you would see the account get billed in Q2 (for quarterly) or June (for monthly) based on x/365 for the first period only.  To setup an account to do this, you simply need to add a Start Billing Date to the account.  I have provided steps on how to do that below.  Please let me know if you have any questions.

            To Add a Start Billing Date (Inception Billing):

            Click on Clients on the left side menu

            Click on View Client Details in the pencil next to the client with the account needing the Start Billing Date

            A slideout window will open

            Click on the pencil next to the account needing the Start Billing Date in the Accounts section

            Enter the Start Billing Date in the box in the Billing Information section

            Save

            Save for the Current Period

             

            Inception Billing

            If you bill in advance, BillFin handles inception billing (new accounts) in the following manner.  By default, accounts are billed for the full period.  If you want to have BillFin automatically handle first period proration, a user will have to add a Start Billing Date to the account.  BillFin will then bill the account for the first full period and then add an adjustment to that same period's fee for the incepting partial period prorated based on days managed.  BillFin will not do a partial invoice in the incepting period - this means the account will not show up on the Fees page at all in the incepting partial period.  

            Example:  If an account opens on June 14, 2017, I can add that as the Start Billing Date on the account.  Then the account will first show up on the Fees page for 2017 Q3 (for quarterly) or 2017 July (for monthly).  BillFin will calculate a full fee for Q3 and automatically add a 2017 Q2 fee as an adjustment prorated for 48/365 days.

            If you really wanted an advance invoice mid-Q2, you would have to remove (or not add the Start Billing Date).  BillFin will calculate the full fee for Q2 and then you can manually adjust the fee based on your own proration math using Edit Adjustments.  Let me know if you have any questions.

            Updated: 28 Oct 2019 07:37 AM
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