Billing Suggestions

Re: Billing Suggestions

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At 01:21 PM 1/1/01 -0800, Shawn Hogan wrote:
>Well, if a customer owes you $56.85 and they pay you $19.95, they *are* past
>due, aren't they?

I'm in a similar situation. We have a special rate if you prepay 6 months
in advance. The problem comes in when a customer pays 6 months in advance
for one billing period, then wants to go back to being billed the regular
monthly price after their 6 months are up. Perhaps they don't have enough
money to do it all the time and only take advantage of the special rate
when they get their income tax return in or something like that. If you
have their billing item setup as the item with the 6 month special rate and
they only send in a payment for one month service then you have to change
their billing item or something to make it work out right.

What I do to take care of this is everyone is setup with the same billing
cycle item at the normal monthly rate, if they pay for 6 months at the
discounted rate then I post their payment along with an additional credit
to make up for the discount (in my case it's $120 for 6 months with a $30
discount .. normal rates are $25/month). This gives them a total credit
balance of $150 which will be used up in 6 months as OG charges them $25
each month. This also comes in handy in case someone were to cancel during
their 6 months, I can them just delete the credit invoice and OG will show
how much they owe or are due for a refund at the normal monthly rate (of
course they don't get a discount if they cancel before the 6 months are up).

It sometimes confuses customers if they notice they are being billed $25
monthly and don't notice the credit invoice, but I usually try to explain
how it works to them when they pay their first $120 so they understand it
and don't bug me about it later. This situation is why I asked that you
put the "Credit on File" statement on the OG invoices when they have a
negative balance many moons ago ;)

Susie Ward

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