Definition
Billing Type refers to the specific method or schedule by which customers are charged for their rented assets. It determines the timing of the payment obligation relative to the rental period, ensuring that the financial agreement aligns with the company's risk management and the customer's payment capabilities.
Key Details
- System Category: This field is located under the Customer – General (Billing Details) section.
- Billing Methods: The system typically offers two primary options:
- COD-Prepaid: Requires payment immediately upon invoice generation, before or at the start of the rental.
- End of Period: Post Paid: Allows for payment to be processed after the rental period has been completed
Use Case Example
In practice
COD-Prepaid: A new customer is required to pay in advance when their invoice is generated on January 1. This ensures the rental company receives payment before the asset is ever deployed to the job site.
End of Period – Post Paid: A long-term client rents an excavator from January 1 to January 31. Because they are set to “Post Paid,” the system generates the invoice on February 1 after the asset is returned, with payment then expected according to the customer’s specific Net payment terms.