Custom Billing (Beta)
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
1. Adding new line items
1. Adding new line items
Original TCV: $12,000 (Custom billed: $6k, $4k, $2k)
Added item: $3,000
Issue → The TCV is now $15,000, but custom billing still sums to $12,000
2. Changing quantities
2. Changing quantities
Original quantity: 10 seats at $100 each
Updated quantity: 12 seats at $100 each
Issue → Custom billing ($1,000) no longer matches the new TCV ($1,200)
Resolution
When discrepancies arise between the TCV and custom billing amounts, users will be presented with the following options:
| Update billing schedule | Reset to standard billing and continue |
|---|---|
|
|
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:
| Line Item A | Line Item B |
|---|---|
|
|
And here’s how the line items will be charged on each invoice:
Month 1 ($6,000 - Multiplier: 0.5):
| Line Item A | Line Item B |
|---|---|
|
|
Month 2 ($4,000 - Multiplier: 0.3333):
| Line Item A | Line Item B |
|---|---|
|
|
Month 3 ($2,000 - Multiplier: 0.1667):
| Line Item A | Line Item B |
|---|---|
|
|
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