> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincelo.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Billing & Subscriptions

> Subscription billing, advance billing, usage-based billing, and change requests.

### BILLING — Q\&A

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**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

Fincelo raises the invoice for each year on the configured billing date,
not upfront for all years. The CFO can override any year's billing date.

***