How to model "permanent" invoices?
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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 larger 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 and Permanent Quarter revenue recognition rules with the service period-based installments Service Month or Service Quarter, respectively to request synchronized payments.
Example
Assume, for example, you lease machinery – usually, on a yearly base. Now a customer rents a machine for less than one year from 2023-10-10 to 2024-06-20. This is why a billing factor < 0 applies, which reduces the price. You issue one invoice on 2023-07-20 (and hence, the service period starts on 2023-07-20) with one invoice line item that represents the charge for the entire service period.
| # | Quantity | Unit Price | Billing Factor | Billing Unit | Service Period Start | Service Period End | Tax Rate | Pos Total (net) | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | 1 | 1200,00 | 0,69803 | Year | 2023-10-10 | 2024-06-20 | 19% | 837,64 | |
| Subtotal Net | 837,64 | ||||||||
| Tax | 159,15 | ||||||||
| Grand Total | 996,79 |
You agree, however, on split payments equally distributed on a monthly or a quarterly base. Likewise, you equally distribute the revenue and tax bookings across the service period, in accordance with the received payments.
To cover this use case, the following conditions must be met:
- An installment with
Periodset toService Month - A G/L account setting for revenue bookings, a collective account setting for tax bookings, and another collective account setting for deferred revenue bookings
- Source ON fields or custom processes to set
Recognition RuletoPermanent Monthupon invoice generation on the produced invoice line item
Produced installments
| # | Service Period Start | Service Period End | Amount |
|---|---|---|---|
| 1 | 2023-09-20 | 2023-10-19 | 39,67 |
| 2 | 2023-10-20 | 2023-11-19 | 119,00 |
| 3 | 2023-11-20 | 2023-12-19 | 119,00 |
| 4 | 2023-12-20 | 2024-01-19 | 119,00 |
| 5 | 2024-01-20 | 2024-02-19 | 119,00 |
| 6 | 2024-02-20 | 2024-03-19 | 119,00 |
| 7 | 2024-03-20 | 2024-04-19 | 119,00 |
| 8 | 2024-04-20 | 2024-05-19 | 119,00 |
| 9 | 2024-05-20 | 2024-06-19 | 119,00 |
| 10 | 2024-06-20 | 2024-07-19 | 5,12 |
Produced booking details
| # | Booking Date | Type | Amount | Tax Base Amount |
|---|---|---|---|---|
| 1 | 2023-09-20 | Deferred | 33,33 | |
| 2 | 2023-09-20 | Tax | 6,33 | 33,33 |
| 3 | 2023-10-10 | Deferred | -33,33 | |
| 4 | 2023-10-10 | Revenue | 33,33 | |
| 5 | 2023-10-20 | Deferred | 61,29 | |
| 6 | 2023-10-20 | Tax | 19,00 | 100,00 |
| 7 | 2023-10-20 | Revenue | 38,71 | |
| 8 | 2023-11-01 | Deferred | -61,29 | |
| 9 | 2023-11-01 | Revenue | 61,29 | |
| 10 | 2023-11-20 | Deferred | 63,33 | |
| 11 | 2023-11-20 | Tax | 19,00 | 100,00 |
| 12 | 2023-11-20 | Revenue | 36,67 | |
| 13 | 2023-12-01 | Deferred | -63,33 | |
| 14 | 2023-12-01 | Revenue | 63,33 | |
| 15 | 2023-12-20 | Deferred | 61,29 | |
| 16 | 2023-12-20 | Tax | 19,00 | 100,00 |
| 17 | 2023-12-20 | Revenue | 38,71 | |
| 18 | 2024-01-01 | Deferred | -61,29 | |
| 19 | 2024-01-01 | Revenue | 61,29 | |
| 20 | 2024-01-20 | Deferred | 61,29 | |
| 21 | 2024-01-20 | Tax | 19,00 | 100,00 |
| 22 | 2024-01-20 | Revenue | 38,71 | |
| 23 | 2024-02-01 | Deferred | -61,29 | |
| 24 | 2024-02-01 | Revenue | 61,29 | |
| 25 | 2024-02-20 | Deferred | 65,51 | |
| 26 | 2024-02-20 | Tax | 19,00 | 100,00 |
| 27 | 2024-02-20 | Revenue | 34,49 | |
| 28 | 2024-03-01 | Deferred | -65,51 | |
| 29 | 2024-03-01 | Revenue | 65,51 | |
| 30 | 2024-03-20 | Deferred | 61,29 | |
| 31 | 2024-03-20 | Tax | 19,00 | 100,00 |
| 32 | 2024-03-20 | Revenue | 38,71 | |
| 33 | 2024-04-01 | Deferred | -61,29 | |
| 34 | 2024-04-01 | Revenue | 61,29 | |
| 35 | 2024-04-20 | Deferred | 63,33 | |
| 36 | 2024-04-20 | Tax | 19,00 | 100,00 |
| 37 | 2024-04-20 | Revenue | 36,67 | |
| 38 | 2024-05-01 | Deferred | -63,33 | |
| 39 | 2024-05-01 | Revenue | 63,33 | |
| 40 | 2024-05-20 | Deferred | 61,29 | |
| 41 | 2024-05-20 | Tax | 19,00 | 100,00 |
| 42 | 2024-05-20 | Revenue | 38,71 | |
| 43 | 2024-06-01 | Deferred | -61,29 | |
| 44 | 2024-06-01 | Revenue | 61,29 | |
| 45 | 2024-06-20 | Tax | 0,82 | 4,31 |
| 46 | 2024-06-20 | Revenue | 4,31 |
To cover this use case, the following conditions must be met:
- An installment with
Periodset toService Quarter - A G/L account setting for revenue bookings, a collective account setting for tax bookings, and another collective account setting for deferred revenue bookings
- Source ON fields or custom processes to set
Recognition RuletoPermanent Quarterupon invoice generation on the produced invoice line item
Produced installments
| # | Service Period Start | Service Period End | Amount |
|---|---|---|---|
| 1 | 2023-07-20 | 2023-10-19 | 38,81 |
| 2 | 2023-10-20 | 2024-01-19 | 357,00 |
| 3 | 2024-01-20 | 2024-04-19 | 357,00 |
| 4 | 2024-04-20 | 2024-07-19 | 243,98 |
Produced booking details
| # | Booking Date | Type | Amount | Tax Base Amount |
|---|---|---|---|---|
| 1 | 2023-07-20 | Deferred | 32,61 | |
| 2 | 2023-07-20 | Tax | 6,20 | 32,61 |
| 3 | 2023-10-10 | Deferred | -32,61 | |
| 4 | 2023-10-10 | Revenue | 32,61 | |
| 5 | 2023-10-20 | Deferred | 261,29 | |
| 6 | 2023-10-20 | Tax | 57,00 | 300,00 |
| 7 | 2023-10-20 | Revenue | 38,71 | |
| 8 | 2023-11-01 | Deferred | -100,00 | |
| 9 | 2023-11-01 | Revenue | 100,00 | |
| 10 | 2023-12-01 | Deferred | -100,00 | |
| 11 | 2023-12-01 | Revenue | 100,00 | |
| 12 | 2024-01-01 | Deferred | -61,29 | |
| 13 | 2024-01-01 | Revenue | 61,29 | |
| 14 | 2024-01-20 | Deferred | 261,29 | |
| 15 | 2024-01-20 | Tax | 57,00 | 300,00 |
| 16 | 2024-01-20 | Revenue | 38,71 | |
| 17 | 2024-02-01 | Deferred | -100,00 | |
| 18 | 2024-02-01 | Revenue | 100,00 | |
| 19 | 2024-03-01 | Deferred | -100,00 | |
| 20 | 2024-03-01 | Revenue | 100,00 | |
| 21 | 2024-04-01 | Deferred | -61,29 | |
| 22 | 2024-04-01 | Revenue | 61,29 | |
| 23 | 2024-04-20 | Deferred | 168,36 | |
| 24 | 2024-04-20 | Tax | 38,95 | 205,03 |
| 25 | 2024-04-20 | Revenue | 36,67 | |
| 26 | 2024-05-01 | Deferred | -100,00 | |
| 27 | 2024-05-01 | Revenue | 100,00 | |
| 28 | 2024-06-01 | Deferred | -68,36 | |
| 29 | 2024-06-01 | Revenue | 68,36 |