Hi,

I have a question regarding billing. I hope someone can help me out here, thank you in advance.

Say the customer signedup on the 5th of March, 2002 and he will always be billed on the 5th of every month. Say on the 10th of May, 2002, he requested another 10 POP mail accounts to be added to his current plan, which would cost him 30USD to setup and 10USD monthly.

Should I bill the addon separately by sending out another invoice on 10th of every month?

or

Should I somehow sum it up in the invoice that is send out on the 5th? If yes, how?

Thanks. Any help would be kindly appreciated.
Joe

Hi,

Anybody willing to shed some light on this?

Joe

My advise would be to keep one billing date and pro-rate any extra services as they are added on to the account.

Hope this is helpful ;)

Maybe we're too generous, but we always just work out when their next bill is due and start the billing of that addon then. So if they are billed on the 5th, get an addon on the 10th, they effectively get 25 days free.

May be too generous, but it works itself out over time.

Originally posted by davehooper.net
Maybe we're too generous, but we always just work out when their next bill is due and start the billing of that addon then. So if they are billed on the 5th, get an addon on the 10th, they effectively get 25 days free.

May be too generous, but it works itself out over time.

It is generous - but I wouldn't say too generous ;) It's actually really good customer service - we do it too sometimes, depending on the customer.

Looks like both are equally good. One question on dave's method, if there's a setup charge, do you leave that for the next billing as well?

Thank you everyone.
Joe

Hey,
This is just an idea, but maybe you could have like a mid-point, example the 15th of every month. Anyone who signs up before that, gets billed for the entire month, and anyone who joins after that, gets billed at begining of the next month? :P

Kunal

Originally posted by joethong
Hi,

I have a question regarding billing. I hope someone can help me out here, thank you in advance.

Say the customer signedup on the 5th of March, 2002 and he will always be billed on the 5th of every month. Say on the 10th of May, 2002, he requested another 10 POP mail accounts to be added to his current plan, which would cost him 30USD to setup and 10USD monthly.

Should I bill the addon separately by sending out another invoice on 10th of every month?

or

Should I somehow sum it up in the invoice that is send out on the 5th? If yes, how?

Thanks. Any help would be kindly appreciated.
Joe

Well, we actually bill customers for additional services the following month.

Also, billing on the same day every month is a bad idea -- what happens if a customer signs up on the 31st? (They'll only get billed 6 times a year). I'd recommend you bill every 30 days.

Kunal bring up a good option, which is pro-rating based on a mid point (or a set of points) in a month.

My $.02

Dan

Hey ... why is it a penny for your thoughts, and you put in your '2 cents'? Somebody's making a penny ...

Originally posted by CagedTornado
Hey ... why is it a penny for your thoughts, and you put in your '2 cents'? Somebody's making a penny ...

That must be some rich s.o.b. :cool:

Greetings:

We've done both a proration as well as under separate invoice.

Recently we are switching to all porations to make it easier for our clients to reconsile their account.

Thank you.