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Advanced Billing

Advanced billing refers to sophisticated billing practices or capabilities that go beyond basic billing functionalities to address complex billing scenarios, accommodate specialized pricing structures, and support advanced revenue recognition requirements.

What is Advanced Billing?

Advanced billing refers to sophisticated billing practices or capabilities that go beyond basic billing functionalities to address complex billing scenarios, accommodate specialized pricing structures, and support advanced revenue recognition requirements. It typically involves the use of specialized billing software, systems, or modules designed to handle intricate billing processes and billing arrangements in various industries and business contexts. For advanced billing in NetSuite, ZoneBilling is a native app designed to manage everything from common to complex billing requirements. 

Here are some examples of advanced billing:

  • Subscription Billing: This involves recurring charges for a service or product provided on a subscription basis. It can include different billing cycles (monthly, quarterly, annually) and may involve tiered pricing based on usage or features.
  • Usage-Based Billing: Charges are based on the amount or level of usage of a product or service. This could be measured by the number of units consumed, the duration of usage, or other metrics specific to the service being provided.
  • Tiered Pricing: Customers are charged different rates based on the tier of service they select. For example, a software-as-a-service (SaaS) company might offer different levels of functionality at different price points.
  • Metered Billing: Similar to usage-based billing, but charges are based on specific metered measurements. This could include things like data transfer volume, number of transactions, or CPU usage.
  • Dynamic Pricing: Prices change dynamically based on various factors such as demand, time of day, or customer segment. This is common in industries like hospitality, transportation, and e-commerce.
  • Bundle Pricing: Customers are charged a single price for a bundle of products or services. This can encourage upselling and may offer discounts compared to purchasing each item individually.
  • Prepaid Billing: Customers pay in advance for a certain amount of usage or access. This is common in industries like telecommunications or utilities, where customers purchase prepaid credits to use services.
  • Postpaid Billing: Customers are billed after they have used the service or consumed the product. This is the traditional model for many services like utilities or credit cards.
  • Prorated Billing: Charges are adjusted based on the portion of a billing period that the customer has used the service. For example, if a customer upgrades their subscription mid-month, they might be charged a prorated amount for the remainder of the month at the new rate.
  • One-Time Fees and Charges: These are non-recurring charges for specific services or events, such as setup fees, installation charges, or penalty fees.
  • Discounts and Promotions: Various discounts and promotions can be applied to billing, such as percentage discounts, buy-one-get-one offers, or referral bonuses.
  • Contractual Billing: Billing based on contractual agreements, which may include terms like minimum commitments, early termination fees, or penalties for exceeding usage limits.
  • Cross-Border Billing: Billing across different jurisdictions or currencies, which may involve handling taxes, currency conversions, and compliance with local regulations.
  • Custom Pricing: Tailored pricing arrangements for specific customers based on negotiated terms, volume commitments, or other factors.

Recommended terms

B2B Payments
B2B payments, short for Business-to-Business payments, refer to financial transactions that occur between companies. This is distinct from B2C (Business-to-Consumer) transactions where businesses sell goods or services directly to individual customers.
Billing
Billing is the process of generating invoices or bills to request payment from customers or clients for goods sold or services rendered. It is a fundamental aspect of business operations that involves documenting the details of transactions, calculating charges, and issuing invoices to customers for payment.
Consolidated Invoicing
Consolidated invoicing, also known as centralized billing or grouped invoicing, is a billing process in which multiple transactions or charges incurred over a specified period are combined into a single invoice for payment.

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Advanced Billing

What is Advanced Billing?

Advanced billing refers to sophisticated billing practices or capabilities that go beyond basic billing functionalities to address complex billing scenarios, accommodate specialized pricing structures, and support advanced revenue recognition requirements. It typically involves the use of specialized billing software, systems, or modules designed to handle intricate billing processes and billing arrangements in various industries and business contexts. For advanced billing in NetSuite, ZoneBilling is a native app designed to manage everything from common to complex billing requirements. 

Here are some examples of advanced billing:

  • Subscription Billing: This involves recurring charges for a service or product provided on a subscription basis. It can include different billing cycles (monthly, quarterly, annually) and may involve tiered pricing based on usage or features.
  • Usage-Based Billing: Charges are based on the amount or level of usage of a product or service. This could be measured by the number of units consumed, the duration of usage, or other metrics specific to the service being provided.
  • Tiered Pricing: Customers are charged different rates based on the tier of service they select. For example, a software-as-a-service (SaaS) company might offer different levels of functionality at different price points.
  • Metered Billing: Similar to usage-based billing, but charges are based on specific metered measurements. This could include things like data transfer volume, number of transactions, or CPU usage.
  • Dynamic Pricing: Prices change dynamically based on various factors such as demand, time of day, or customer segment. This is common in industries like hospitality, transportation, and e-commerce.
  • Bundle Pricing: Customers are charged a single price for a bundle of products or services. This can encourage upselling and may offer discounts compared to purchasing each item individually.
  • Prepaid Billing: Customers pay in advance for a certain amount of usage or access. This is common in industries like telecommunications or utilities, where customers purchase prepaid credits to use services.
  • Postpaid Billing: Customers are billed after they have used the service or consumed the product. This is the traditional model for many services like utilities or credit cards.
  • Prorated Billing: Charges are adjusted based on the portion of a billing period that the customer has used the service. For example, if a customer upgrades their subscription mid-month, they might be charged a prorated amount for the remainder of the month at the new rate.
  • One-Time Fees and Charges: These are non-recurring charges for specific services or events, such as setup fees, installation charges, or penalty fees.
  • Discounts and Promotions: Various discounts and promotions can be applied to billing, such as percentage discounts, buy-one-get-one offers, or referral bonuses.
  • Contractual Billing: Billing based on contractual agreements, which may include terms like minimum commitments, early termination fees, or penalties for exceeding usage limits.
  • Cross-Border Billing: Billing across different jurisdictions or currencies, which may involve handling taxes, currency conversions, and compliance with local regulations.
  • Custom Pricing: Tailored pricing arrangements for specific customers based on negotiated terms, volume commitments, or other factors.

Related terms

Billing and Invoicing
Automated Clearing House (ACH)
An Automated Clearing House (ACH) is an electronic network that facilitates the transfer of funds between bank accounts in the United States (and internationally with some variations).
Billing and Invoicing
B2B Payments
B2B payments, short for Business-to-Business payments, refer to financial transactions that occur between companies. This is distinct from B2C (Business-to-Consumer) transactions where businesses sell goods or services directly to individual customers.
AP Automation
AR Automation
Billing and Invoicing
Invoice Processing
Invoice processing is the entire workflow a business follows to manage incoming invoices from suppliers or vendors, all the way from receiving them to paying them. It's essentially how companies ensure they're paying the right amount, to the right vendor, at the right time.
Billing and Invoicing
Revenue Leakage
Revenue leakage refers to the unintentional loss of revenue that a business earns but fails to collect.
Billing and Invoicing
Quote-to-Cash (Q2C)
Quote-to-Cash (Q2C), also sometimes referred to as Quote-to-Order-to-Cash (QTC), is the entire business process encompassing all the activities involved in generating a sale from the initial quote to receiving payment.
Billing and Invoicing
Annual Contract Value (ACV)
Annual Contract Value (ACV) is a metric used to assess the average yearly revenue generated by a single customer contract. It helps businesses understand the annualized worth of their customer base, focusing on recurring revenue streams.