Adjusting the Billing Contract to the New Frequency Using Work 365

Billing Contract Changes

Annual billing contracts are always great if you can get your customer to agree with them. It is great for your cash flow; it reduces the impact from the billing standpoint and your collection. Several companies enjoy the facilitation Annual Contracts brings to the table. But in today’s ever-changing environment you might be asked by your customers to change their billing cycle.

Then, what should you do?

There are two specific scenarios that you want to think about when it comes to change a Billing Cycle from annual to monthly or quarterly:

Scenario 1

The relationship changes at the renewing of the contract. The customer had an Annual contract and now wants a Monthly contract.

 

Solution:

  • Run the Change Log Invoice

This step is important because if there were any changes that happened between the last billing date and the last time you invoiced your client. You want to make sure you will include all those changes to the new invoice which you can see using the Change Log Invoice.

  • Adjust the Sales Unit and Sales Price, if needed

Work 365 can divide or multiply based on which sales unit was set up as the sales price and adjust on what needs to be invoiced at the time the invoice is generated. You need to take extra care if you sell your own IP where the annual price is different from the monthly price.

  • Adjust the Billing Contract to the new frequency

This is the simple step you need to perform in the billing contract to change the frequency of your invoice.

Scenario 2

The relationship changes in the middle of the contract. The changes are made mid-cycle. They want to add more licenses or products and they don’t want an Annual billing right now to conserve their cash flow. If you add the new changes to the current billing contract the invoice that is generated will show the balance for the year.

Solution:

  • Create a brand-new subscription to accommodate the change and associate it with the new billing contract

You will want to create a new subscription and associate with a new billing contract because this is an existing relationship which will be billed using the original frequency as it was set up in the billing contract.