Billing Guide: Recurring services
This guide provides you with examples of how the system calculates billable periods for the cycles created by a contract. Billing cycles offered in the PSA are Contract Length, Weekly, Monthly, Quarterly, and Yearly. Examples of all the cycles with and without Calendar billing are listed at the end of this guide.
Contract parameters considered in this example are:
Start date: 10th Aug 2020
End date: 31st Aug 2021
Service item has a unit price of 20$
Service item Effective date: 10th Aug 2020
Billing Cycles:
Billing in PSA can be automated using Finance > Billing automation or manually using Billing review. To review the periods we will make use of the manual method. A summarized view of all the cycles is listed at the end of this guide.
This section lists periods that will be shown in the Finance > Billing review of the above contract. Listed billable items can be posted and invoiced in Finance > Billing.
Weekly and Fiscal years (Calendar year: Yes)
Billing spans weekly from Monday to Sunday.
Below time period shows the first few weeks of this weekly billing cycle.
10th of August falls on Monday so the period considers the 10th as the start of the first cycle.
Start | 10-Aug-2020 | 17-Aug-2020 | 24-Aug-2020 | 31-Aug-2020 | 07-Sep-2020 | 14-Sep-2020 |
End | 16-Aug-2020 | 23-Aug-2020 | 30-Aug-2020 | 06-Sep-2020 | 13-Sep-2020 | 20-Sep-2020 |
Below time period shows the last few weeks of this weekly billing cycle.
Start | 26-July -2021 | 02-Aug-2021 | 09-Aug-2021 | 16-Aug-2021 | 23-Aug-2021 | 30-Aug-2021 |
End | 01-Aug-2021 | 08-Aug-2021 | 15-Aug-2021 | 22-Aug-2021 | 29-Aug-2021 | 31-Aug-2021 |
Weekly and Fiscal years (Calendar year: No)
Billings spans from the start date to a week from the start date.
The below time period shows the first few weeks of this weekly billing cycle.
Start | 10-Aug-2020 | 17-Aug-2020 | 24-Aug-2020 | 31-Aug-2020 | 07-Sep-2020 | 14-Sep-2020 |
End | 16-Aug-2020 | 23-Aug-2020 | 30-Aug-2020 | 08-Aug-2020 | 13-Sep-2020 | 20-Sep-2020 |
Below time period shows the last few weeks of this weekly billing cycle.
Start | 21-Jul-2021 | 28-July-2021 | 04-Aug-2021 | 11-Aug-2021 | 18-Aug-2021 | 25-Aug-2021 |
End | 27-Jul-2021 | 03-Aug-2021 | 10-Aug-2021 | 17-Aug-2021 | 24-Aug-2021 | 31-Aug-2021 |
Monthly and Fiscal years (Calendar year: Yes)
Billings spans from the 1st of the month to the end of a calendar month.
Below time period shows the first few months of the monthly billing cycle.
Start | 10-Aug-2020 | 1-Sep-2020 | 1-Oct-2020 | 1-Nov-2020 |
End | 31-Aug-2020 | 30-Sep-2020 | 31-Oct-2020 | 30-Nov-2020 |
Below time period shows the last few months of the monthly billing cycle.
Start | 01-May-2021 | 01-Jun-2021 | 01-July-2021 | 01-Aug-2021 |
End | 31-May-2021 | 30-Jun-2021 | 31-July-2021 | 31-Aug-2021 |
Because our effective date is 10th August, the line item for the first month will be prorated.
Proration is calculated from the first of the month to the effective date.
Monthly and Fiscal years (Calendar year: No)
Billings spans from the start date to a month from the start date.
Below time period shows the first few months of the monthly billing cycle.
Start | 10-Aug-2020 | 10-Sep-2020 | 10-Oct-2020 | 10-Nov-2020 |
End | 09-Sep-2020 | 9-Oct-2020 | 09-Nov-2020 | 09-Dec-2020 |
Below time period shows the last few months of the monthly billing cycle.
Start | 10-May-2021 | 10-Jun-2021 | 10-Jul-2021 | 10-Aug-2021 |
End | 09-Jun-2021 | 09-Jul-2021 | 09-Aug-2021 | 31-Aug-2021 |
Because our effective date is 10th August, the line item for the last month will be prorated.
Quarterly and Fiscal years (Calendar year: Yes)
Billings span from the beginning to the end of the quarter of a calendar year.
Below time period shows the span for the quarterly billing cycle.
Start | 10-Aug-2020 | 01-Oct-2020 | 01-Jan-2021 | 01-Apr-2021 | 01-Jul-2020 |
End | 30-Sep-2020 | 31-Dec-2020 | 31-Mar-2021 | 30-June-2021 | 31Aug-2021 |
Prorations are calculated for the first and last quarter as they don’t begin and end with Fiscal quarters.
Quarterly and Fiscal years (Calendar year: No)
Billings spans from the start date to a quarter from the start date.
Below time period shows the span for the quarterly billing cycle.
Proration is calculated for the last quarter as the period doesn't complete the quarter cycle.
Yearly and Fiscal years (Calendar year: Yes)
Billings spans from the start date to the end of the calendar year.
Below time period shows the span for the quarterly billing cycle.
Start | 10-Aug-2020 | 01-Jan-2021 |
End | 31-Dec-2020 | 31-Aug-2021 |
The line items are prorated as the time periods do not cover a complete year.
Yearly and Fiscal years (Calendar year: No)
Billings spans from the start date to a year from the start date.
Below time period shows the span for the quarterly billing cycle.
Start | 10-Aug-2020 | 09-Aug-2021 |
End | 10-Aug-2021 | 31-Aug-2021 |
The line items are prorated as for the last period as it does not complete a year.
Contract Length:
This setup is used when you want to set up a one-time payment for a contract. You can generate one invoice for the whole period. Fiscal or non- Fiscal will not matter as the period considered will be what is defined in the contract.
Billing Cycle summary
The summarized view for the billing periods is shown below
Start Date | End date | Billing Cycle | Calendar years |
Service effective date | A week from the effective date | Weekly | No |
Service effective date | A month from the effective date | Monthly | No |
Service effective date | A quarter from the effective date | Quarterly | No |
Service effective date | A week from the effective date | Weekly | No |
Service effective date | A year from the effective date | Yearly | No |
Service effective date | End of the effective week Sunday | Weekly (Monday to Sunday) | Yes |
Service effective date | End of a particular month | Monthly | Yes |
Service effective date | End of the particular quarter | Quarterly | Yes |
Service effective date | End of the billing year | Yearly | Yes |