How to model "permanent" invoices?

← Billing & Invoice Management FAQ

Your business may require to bill a product with a large service period. The payments, however, are to be distributed across smaller intervals, and so do the revenue and tax bookings. This is common practice in the context of rental or lease contracts, for example: you regularly provide the same service at the same price over a large period. In Germany and Austria, this approach is known as Dauerrechnung ("permanent invoice").

Solution Outline

To model this scenario in JustOn Billing & Invoice Management, you combine the Permanent Month or Permanent Quarter revenue recognition rules with the service period-based installments Service Month or Service Quarter, respectively, to request synchronized payments.

Example

Assume you lease machinery – usually, on a yearly basis. Now a customer rents a machine for less than one year from 2025-10-10 to 2026-06-20. This is why a billing factor < 0 applies, which reduces the price. You issue one invoice on 2025-07-21 with one invoice line item that represents the charge for the entire service period.

You agree, however, on split payments equally distributed on a monthly or a quarterly basis. Likewise, you equally distribute the revenue and tax bookings across the service period, in accordance with the received payments.