Bill lag days refer to the number of days prior to (negative) or after (positive) an account billing date at which an invoice should be generated.
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Bill Lag Days
Bill Lag Days
Overview
Negative Bill Lag Days
Negative bill lag days are typically used for subscription-based services (often subscription-based services paid using net-terms), in which the user would like to send out invoices to customers well in advance of the real invoice date.
This scenario gives the customer time to receive a paper or email invoice and send in a payment prior to the start of what would have been the real invoice date.
Note: Bill lag days only generate the invoice on a different day, besides the account billing date. Bill lag days do not alter the actual billing period on the account. For this reason, negative bill lag days (billed in advance) on a usage-based billing period will only bill up to the date of the invoice generation.
Positive Bill Lag Days
Positive bill lag days are typically used for usage-based services.
For example, if bill lag days are set at a value of 3, and a user had usage-based services that were loaded daily with a usage period of September 1st through September 30th, any usage loaded on the 1st, 2nd, or 3rd of October with a usage date in September would still be included in the October invoice for recurring charges in advance and September usage charges in arrears.
Setting Bill Lag Days
Bill lag days can be set at the client level, payment method, and collection group (also known as "collection account group").
Setting Bill Lag Days at the Client Level
Bill lag days can be set at the client level for each recurring interval. With this configuration, an annual plan can have invoices sent out 90 days in advance while a monthly would be constrained to a smaller window so that it did not exceed the monthly recurring interval.
Getting Here: Click Configuration > Billing > Bill Lag Days
- Enter a value for each applicable recurring interval in the Value (Days) field.
- Click Save.
Setting Bill Lag Days at the Payment Method
At a more granular level, bill lag days can be set at the payment method so that all accounts associated with a particular payment method (i.e. ACH) receive invoices in advance of, or after, the specified billing date.
Getting Here: Click Configuration > Payments > Payment Methods
- Create a new payment method or select an existing payment method.
- Enter a bill lag days amount into the Bill Lag Days field.
- Click Save.
Setting Bill Lag Days at the Collection Group
Even more granularly, you can set bill lag days at the collection group (also known as "collection account group") to ensure a specific grouping of accounts receives invoices in advance of, or after, the billing date.
Getting Here: Click Configuration > Payments > Payment Methods
- Create a new payment method or select an existing payment method.
- Enter a bill lag days amount into the Bill Lag Days field for all applicable, associated payment methods.
- Click Save.
Bill Lag Day Order of Precedence
To allow the most flexible and granular setting of invoice generation, the bill lag day setting at the collection group level overrides the setting at the payment method level, which overrides the setting at the client level, as indicated below.
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