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Cant get my head around Invoicing

Discussion in 'General Discussion' started by kwerk, 9 Jun 2010.

  1. kwerk

    Wise Guy

    Joined: 23 May 2009

    Posts: 5,748

    I'm working on an invoicing system for a site.

    There are 3 different service plans available:

    Download 1 product per day
    Download 1 per week.
    Download 1 per month.

    There needs to be a single invoice per month that calculates the total for the plan(s) the user has.

    Some users have 3 or 4 different plans on their account, added at different times.

    For example first they order "1 per day" on the 10th, then they order "1 per month" for something else on the 17th. They they order "1 per week" for something else on the 22nd.

    Their monthly invoice date for their account would be the 10th.

    How do I put all of them in to one invoice each month? I don't want to send 3 separate invoices each month. I can't get my head around the overlapping times.
     
  2. Sin_Chase

    Capodecina

    Joined: 13 Jan 2004

    Posts: 20,580

    Eh?

    Just itemise them on the invoice each with their own date.

    Not seeing the problem? The invoice date does not have to match the items listed which will all have their own date.
     
  3. kwerk

    Wise Guy

    Joined: 23 May 2009

    Posts: 5,748

    But then they would only be getting half a month or whatever on the other products. Seems like the price has to be prorated or something.

    They pay a setup fee + first month at the time of ordering, then each 10th they should get an invoice for the next month.
     
  4. Sin_Chase

    Capodecina

    Joined: 13 Jan 2004

    Posts: 20,580

    You get invoices at the end of a period, not at the start of it.

    If you are not offering credit, then just invoice as and when they pay.
     
  5. Biohazard

    PermaBanned

    Joined: 29 Aug 2003

    Posts: 31,334

    Some telephone/broadband/tv billing works like that, half of it being credit the rest being arrears.
     
  6. Sin_Chase

    Capodecina

    Joined: 13 Jan 2004

    Posts: 20,580

    I still cannot see the complication. Anything bought prior to the billing/invoice date gets put on it. Anything after rolls over onto the next.

    Makes no sense, what has invoicing got to do with the customer getting their product?
     
  7. mistercrabb

    Wise Guy

    Joined: 11 Jun 2009

    Posts: 1,248

    Supply your services as normal.
    In the middle of the month (or whenever) Invoice your customers for all services they subscribed to since the last invoice.
     
    Last edited: 9 Jun 2010
  8. DirtyJester

    Caporegime

    Joined: 17 Oct 2006

    Posts: 25,680

    ..bet you don't mess up your own ;)
     
  9. Richie

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 7,505

    Location: Entering Hell...

    Easiest way (I think anyway) would be to just setup their billing date base on the first product purchase.

    Any additional products bought later should then be invoiced in a pro-rata basis from the date of ordering until their invoice date and then invoiced monthly as per normal. e.g.

    Product 1 (weekly) - bought on 10th
    Product 2 (monthly) - bought on 18th
    Product 3 (daily) - bought on 4th of following month.

    Invoice date = 10th of month

    Product 1 - billed as normal
    Product 2 - first month is billed pro-rata from 18th of month 1 until next invoice date (circa 22 days worth)
    Product 3 - first month is billed pro-rata from 4th of month 1 until next invoice date (7 days worth)




    Edit: to save any posts bout it - if they cancel a product between invoice dates then, again, its invoiced pro-rata
     
  10. kwerk

    Wise Guy

    Joined: 23 May 2009

    Posts: 5,748


    If their invoice date is the 10th, and they order a new service on the 7th and pay $100 setup + $100 month, then they would immediately get billed for another $100 for the next month after just 3 days (on the 10th). Seems a unfair to make them pay so far upfront.

    I think I have it figured out now though.
     
  11. Richie

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 7,505

    Location: Entering Hell...

    Then you dont charge them $100 for the month as soon as its setup.... You can certainly bill them the setup cost and then, on the 10th you would charge them -

    ($100/30)*3 + $100 on their billing cycle.

    This would cover the next month plus 3 days for previous month...


    Personally tho, I would be billing them

    "($monthly cost/30)*3 + $monthly cost + $setup fee"

    On their next bill date...

    The "3" would be changed depending on how many days they used from setup date till billing date
     
    Last edited: 9 Jun 2010
  12. Sin_Chase

    Capodecina

    Joined: 13 Jan 2004

    Posts: 20,580

    So you don't give any credit?

    Why complicate things. Just invoice them when they buy something, there will never be a time you need to issue an invoice to receive payment so why bother sending invoices like a company who would be demanding payment for the months worth of service thier customer has not paid for yet.

    Cannot recall a time where I bought a product or service and paid upfront and did not recieve an invoice there and then.