Contract Billing & Periodic Invoicing
Execution steps
6 steps
- 01Set the Invoice Type on each service line (Fixed Price, Resources Used, Free of Charge, or Invoice Plan) — Invoice Plan enables periodic invoicing.
- 02Configure invoice parameters: Price Unit (validity of periodic price), Invoice Rule (prior/post), periodic invoice parameters (frequency), agreement invoice rules, benefit rules and cap prices.
- 03Accept periodic price lines (status Accepted) so they are eligible for invoicing.
- 04Generate invoice preview for a service line or the whole contract; the system checks the invoice period against service line / periodic price validity to determine eligibility.
- 05Invoice single lines, the whole contract, or multiple contracts (filterable by site/contract type/customer, run directly or as a scheduled background job with days-ahead); period allocation rules distribute amounts over periods.
- 06Transfer to Customer Order for invoicing; optionally create collective customer invoices to combine multiple lines/contracts.
Data requirements
18 requirements
- Service ContractrequiredService Contract
Billing runs against active contracts with periodic prices and invoice parameters.
- Sales PartrequiredSales Part
Contract invoice lines are priced and posted through sales parts.
- CustomerrequiredCustomer
Invoice customer with invoicing address, currency and payment data must exist.
- Payment Termsrequired
Required for customer invoicing via customer order.
- Tax CoderequiredTax Code
Tax codes must be set up for invoice line taxation.
- Periodic Invoice Parametersrequired
Price unit, invoice rule (prior/post) and period allocation control the billing run.
- Customer Order TyperecommendedCustomer Order Type
Contract invoicing flows through customer orders of a defined order type.
- Agreement Invoice Ruleoptional
Only when agreement-based invoice rules, benefit rules or cap prices are applied.
- CompanyrequiredCompany
Invoicing requires company financial and tax setup.
- SiterequiredSite
Customer orders created from contract invoicing are site-bound.
- Currency Code & RatesrequiredIsoCurrency
Invoices are raised in contract currency with valid conversion rates.
- Invoice Number Seriesrequired
Customer invoice numbering must be configured per company/series.
- Price Unitrequired
The price unit governs how periodic prices are calculated and allocated.
- Benefit Ruleoptional
Benefit-sharing invoicing applies only when benefit rules are used on the agreement.
- Cap Price Setupoptional
Caps limit invoiced amounts when cap prices are configured on the contract.
- Posting Controlrequired
Revenue and receivable postings from contract invoices require posting control setup.
- Customer Invoice Addressrequired
Collective and periodic invoices need a valid invoice address per customer.
- Invoice Typerequired
Invoice Plan vs work-task invoicing is determined by the invoice type on the service line.
Configuration decisions
5 decisions
- Invoice type per service line and whether periodic invoicing (Invoice Plan) is used.
- Price Unit, invoice frequency, and Invoice Rule (invoice prior vs post period).
- Agreement invoice rules (discounts by sales group / cost type) and whether zero-amount sales lines are included.
- Cap prices, benefit rules (free-of-charge / price override, full-time or per period) and period allocation method.
- Whether the customer uses collective invoices.
KPIs
5 measures
- Contract revenue invoiced per period.
- Revenue leakage / un-invoiced eligible periodic prices.
- Billing accuracy (invoiced amount vs contracted periodic price).
- Invoice cycle timeliness (invoices generated vs due periods).
- Cap-price / benefit utilization per contract.
Integration points
4 integrations
- Customer Order — periodic invoices and work-task transfers are created as customer orders.
- Pricing — sales price lists / customer agreements feed contract pricing.
- Finance — period allocation posts revenue across future periods.
- Work Order / Work Task — task-based invoicing via connected service contract/line.
Workshop questions
6 questions
- Which invoice types apply per service line and where is periodic invoicing required?required
- What billing frequency, price unit and prior/post invoice rule do you need?required
- Do you use cap prices, benefit rules (free calls / price override) or agreement invoice rules?
- Should periodic invoicing run as a scheduled background job with days-ahead generation?required
- Do you require collective invoices across multiple contracts/lines?
- What period-allocation method (Proportional/Even/Mixed) applies for revenue distribution?
Prerequisites
3 prerequisites
- Active service contract with defined service lines, accepted periodic prices and invoice parameters.
- Non-inventory sales parts configured for the invoice-type lines.
- Customer set to allow collective invoices (Customer/Sales/General) if collective invoicing is required.
Industry variants
3 variants
- Fixed-fee maintenance contracts
Invoice Plan periodic invoicing with cap prices and benefit rules (e.g., free calls per period).
- Time & material service
Resources Used invoice type with agreement invoice rule discounts.
- Multi-entity customers
Collective invoicing and alternative payer/additional customers.
Process diagram
1 BPMN diagram
A real BPMN diagram, editable in the platform, not a picture of one. It is the same diagram your team will annotate in the workshop.
Sources
2 citations
Where this came from. Every process traces back to IFS documentation and release notes, so a claim about how IFS behaves can be checked rather than believed.
This is one of 620.
The rest of the library is worked to the same depth. A license opens all of it, and your own repository is cut from it.