Use this activity to enter parameters required to invoice a Contract.
The following parameters can be specified:
Price Unit Length and Price Unit, which controls the time period for which the periodic price to be invoiced is valid. For example, if a contact line contains a periodic price of $1200, and the customer will be invoiced every quarter, i.e. March, June, September and December, the following table shows how different price units and price unit lengths, affect the price to be invoiced:
| Price Unit Length | Price Unit |
Price to be Invoiced ($) |
Explanation |
|||
| March | June | September | December | |||
| 1 | Month | 3600 | 3600 | 3600 | 3600 | Since the periodic price of $1200 is only valid for a month (price unit length) and invoicing is done once every 3 months, the price to be invoiced multiplied by the number of months, resulting in $3600. |
| 3 | Month | 1200 | 1200 | 1200 | 1200 | Since both the price unit length and the invoicing period are the same, i.e. 3 months, the total price to be invoiced remains the same at $1200. |
| 1 | Year | 300 | 300 | 300 | 300 | In this example, the periodic price of $1200 is valid for 12 months and therefore it should be divided across the invoicing periods, meaning the full year invoice amount of $1200, is divided by 12 months (price unit length) and then multiplied by 3 (each quarter). |
Create Period Allocation which is common when a customer is invoiced a fee for the contract, which will be applied for future periods. The contract allows you to distribute amounts that should be invoiced over time. When an Invoice Plan Detail Line is created, either for preview or when creating an invoice directly, a period allocation rule is automatically attached to the Invoice Plan Detail Line. The period allocation method used by default is Proportional, but can be changed to Even or Mixed. Your can also define the allocation method the system should use by default, by specifying the relevant method in the Object Property, PERIOD_DISTR_METHOD, found in Application Base Setup / System Setup / System Definitions / Object Properties.
Invoice Rule, which defines if invoicing should be carried out in advance i.e. the invoice due date will be set at the start of the invoice period (Prior) or if the invoicing should be carried out at the end of the invoice period i.e. the invoice due date will be set at the end of the invoice period (Post).
Periodic Invoicing which specifies how often a contract should be invoiced. The Plan Start Date and Plan End Date defines between what dates an invoice plan should be generated. It is possible to adjust the Plan End Date, using the Extend Plan command in the contract header. The Interval defines at what interval the invoicing should be done. The invoice plan will be generated based on the interval and the interval unit. (e.g. "1, month" = every month, "3, month" = every quarter or "12, month" = once a year).
Revaluation details which determine how often and at what percentage a revaluation should be performed on the contract, if applicable. The revaluation details are specified on the Revaluation Type, and the percentage can be positive or negative, for example, a price of $100, revaluated at 5% would result in a revised price of $105. If revaluated at -5%, the revised price would be $95.
A Revaluation Type should be defined in Revaluation Type basic data page.
The necessary parameters required to invoice a Contract will be recorded in the system.