BILLING — Q&A
Q: What billing schedules does Fincelo support? Monthly, quarterly, semi-annual, annual, multi-year (year-by-year pricing), and usage-based (4 models: Capped, PAYG, Tiered, Rollover).
Q: How does advance billing work? Finance configures advance billing per subscription: 15/30/45/60/90 days before the period start. On the configured day, Fincelo auto-generates the invoice. Deferred revenue is created at invoice date and released into P&L as the service period begins. Advance billing never accelerates revenue recognition.
Q: What are the 3 options for expansion deal billing? When a customer expands (more seats, higher plan), Fincelo always presents 3 options — never auto-prorates: Option 1 — Pro-rated co-terminus: incremental charge for remaining days of current contract. New seats start immediately. Contract end date unchanged. ASC 606: modification (prospective). Revenue allocated to remaining period. Option 2 — Fresh 12-month independent: expansion billed as a new 12-month subscription starting today. Different end date from the original contract. ASC 606: new separate contract. Recognition starts from today. Option 3 — Extended co-terminus: full new value billed from today for a new 12-month term. Original contract replaced with new end date. ASC 606: contract modification with cumulative catch-up. CFO chooses the option. Choice logged with name + timestamp.
Q: How are multi-year contracts handled? Each contract year gets its own
contract_year_pricing record with:
- Annual value for that year
- Escalation % from the previous year
- Billing date (when that year’s invoice is raised)
- Current year flag