This feature is currently in beta

We are actively enhancing this feature, and some functionalities may change before the official release.

If you're interested in joining the beta program and sharing feedback to help us improve it, please ping us in your dedicated Slack channel, or email support@salesbricks.com.

Overview

Custom billing allows sellers to customize how a customer is billed throughout the duration of a contract. By providing flexibility in invoice amounts and payment collection timing, custom billing can entice prospects with a billing schedule tailored to their needs, while providing sellers with the guardrails to distribute the total contract value (TCV) accurately and seamlessly.

Key capabilities

1. Customize invoice amounts within a standard billing schedule

Set different billing amounts per period (monthly, quarterly, annual) while maintaining the TCV.

Example: Distribute a $12,000 contract across 3 billing periods with $6,000, $4,000, and $2,000 installments, instead of the default monthly installment of $4,000.

2. Control when the first invoice is sent

Select from the checkout date or contract start date.

Click here to read about why the first invoice date matters.

3. Manage payment collection timing for credit card transactions

The customer’s credit card will be charged according to the custom schedule.

Editing an order with custom billing

By default, Salesbricks shows the custom billing schedule on the order form.

If you would prefer to hide it, please reach out to Salesbricks Support.

When editing an open order, simply click the button on the right side of the page labeled “View/update billing schedule.”

If you do not see the “View/update billing schedule” button, your order may be set up to issue just one invoice.

If so, you will need to change the billing frequency of the order, under the section titled “Deal Setup.”

Any modification to the contract value (upgrades, downgrades, or changes to line items) will prompt a review of the existing billing schedule.

If the new TCV does not align with the existing custom billing amounts, the system will detect the discrepancy and require corrective action.

Examples

Resolution

When discrepancies arise between the TCV and custom billing amounts, users will be presented with the following options:

Update billing scheduleReset to standard billing and continue
  • Redirects to the billing schedule editor
  • Users can reallocate the new TCV across custom periods
  • Requirement: Adjustments must equal the revised TCV to proceed
  • Disables custom billing, reverting to equal payment distribution
  • Users can process the order immediately and re-enable custom billing later

How custom billing is displayed on invoices

Basic calculation formula

Line item allocation % = (Original line item amount / TCV) * 100

Custom period amount for line item = (Custom period total * Line item allocation %) / 100

Example calculation

Let’s say we have a contract with 2 line items and a TCV of $12,000, distributed across 3 months using custom billing:

  • Month 1: $6,000 (50% of TCV)
  • Month 2: $4,000 (33.33% of TCV)
  • Month 3: $2,000 (16.67% of TCV)

The cost breakdown of the line items is as follows:

Product AProduct B
  • Subtotal: $8,000
  • Tax (10%): $800
  • Subtotal: $4,000
  • Tax (0%): $0

And here’s how the line items will be charged on each invoice:

Month 1 ($6,000 - Multiplier: 0.5):

Product AProduct B
  • Subtotal: $8,000 × 0.5 = $4,000
  • Tax: $800 × 0.5 = $400
  • Subtotal: $4,000 × 0.5 = $2,000
  • Tax: $0 × 0.5 = $0

Month 2 ($4,000 - Multiplier: 0.3333):

Product AProduct B
  • Subtotal: $8,000 × 0.3333 = $2,667
  • Tax: $800 × 0.3333 = $267
  • Subtotal: $4,000 × 0.3333 = $1,333
  • Tax: $0 × 0.3333 = $0

Month 3 ($2,000 - Multiplier: 0.1667):

Product AProduct B
  • Subtotal: $8,000 × 0.1667 = $1,333
  • Tax: $800 × 0.1667 = $133
  • Subtotal: $4,000 × 0.1667 = $667
  • Tax: $0 × 0.1667 = $0

Key points

  • All amounts are rounded to the nearest cent
  • Each line item is multiplied by the period’s ratio (multiplier)
  • Tax is calculated using the same multiplier
  • Original tax rates are preserved