Service Billing
This topic explains how prepaid credit is applied to service billing invoices, including how it offsets service charges.
The following example shows how a prepaid installment appears on an invoice:
|
Line |
Description |
Amount | Tax |
|---|---|---|---|
|
1 |
Recurring Service |
$100 | 8 |
2 | Annual Commitment – Credit Application | –$100 | |
Total tax | $8 | ||
Total due | $8 |
Rules
The following rules apply to prepaid credit application on service billing:
Prepaid credit is applied to the net charge amount after any discounts are calculated.
Prepaid credit does not reduce the tax amount. Tax is calculated on the original service charge and remains on the invoice.
The credit application always appears as a separate invoice line and is not merged with the service charge line.