Billing for Usage

ERP Cloud

If the Billing Type of a contract line item is "Recurring Variable", you can create billing documents based on customer usage records associated with that contract line item.

In order to bill based on usage, you must define the contract line item's billing dates so that the customer is billed in arrears after their usage data has been uploaded. This ensures that the customer is billed accurately using their actual usage figures. Examples of how you can define billing dates in arrears are provided below.

Notes:

When creating a "Recurring Variable" contract line item, you can optionally enter a quantity as an estimated usage. The resulting sales price is then used on billing schedules as an estimate only. The actual amount billed for a billing period depends on whether usage records exist for the contract line item within the billing period.

The Bill in Arrears checkbox on a contract line item is for reporting purposes only. Selecting this checkbox does not cause the contract line item to be billed in arrears.

Examples of How to Define Billing Dates for Billing in Arrears

You might be able to define both billing periods and suitable billing dates using the Billing Term soft date. However, if you want to calculate billing dates independently from billing periods, you can do this by specifying a Recurring Bill Date.

For an introduction to how the Billing Term is used to calculate billing periods and billing dates, see Calculating Billing Periods and Billing Dates. For information about Recurring Bill Date, see Using Recurring Bill Date.

Creating Usage Records

To create usage records and associate them with contract line items, do one of the following:

  • Click New Usage in the Usage related list of the contract line item to which you want to associate the usage information.
  • Create usage information manually using the Usage tab. See Creating Customer Usage Records.
  • Upload usage records using Salesforce upload tools. For information about the ways in which you can upload records, see the Salesforce Help.
Note:

When a billing job runs it automatically picks up usage information associated with contract line items if the billing type is "Recurring Variable" and the usage date is within the dates of the billing schedule being billed. See Creating Billing Jobs.