05 Billing Accounts

Definition: What is it?

A billing account is a way of allowing customers to consolidate several invoices into an account that is paid off at a later date.

Customers can be allocated a credit limit and orders can be taken up to the value of the credit limit without any payment being made. Statements to the customer can then be generated (eg monthly) and payment is made based on the outstanding amount.

What is it used for?

NOTE: A customer billing account will probably need to be setup in conjunction with a customer payment terms agreement especially in the case where customers are given additional time to pay.

Uses include:

• Setting credit limits for customers
• Managing and generating customer statements ??
• Customer specific order tracking
• Accounts Receivable / Debt Management
• Analysis and monitoring customer spending (creditworthiness / discounts / product popularity ???)

TO DO: Check for more uses

NOTE: If statement processing is included then need to look at processes around aging of debtors 

What's on the screen?

The default screen displays a list of all Billing Accounts with details of the billing account identifier, credit limit, description as well as the agreement start and end dates.

TO DO:Add in a screen shot?