Invoice generation: anniversary & date of month

Learn about the two invoice generation modes for determining when your billing period starts.

Contents

• Anniversary billing
• Date of month billing
• Invoice creation date
• Invoice charge date
• Changing between anniversary and date of month billing
• FAQs

Anniversary billing

Invoices will be generated each month with the billing period start date following to the date of move-in and will therefore be different for each customer.

e.g. if customer moves in on 15 Jan, their initial invoice would be for 1 month and all future invoices will follow a billing period starting on 15th of the month for that respective unit rental

Click here for more information about the different billing cycles available for anniversary billing.

Date of month billing

Invoices for all users will be generated using a fixed day of the month as the start of the billing period.

Example scenario:

Customer A

Move-in date : 15

Invoice period start date : 1

• Their first invoice will prorate charges from March 15 to March 31 and bill for the next full month (April). All future invoices will be billed from the 1st to the last day of each month.
• Prorate calculation:

To calculate the prorated rent for the period from March 15 to March 31:

Prorated Rent = (Monthly Rental Fee) x (12 months / 365 days) x (Number of Days in the Period)

• The daily rate should be calculated first and rounded to 2 decimal places.
• Rounding is done according to standard rounding rules: if the 3rd decimal is 0 to 4, it rounds down; if the 3rd decimal is 5 to 9, it rounds up.
  • Examples:
    • 2.45367 -> 2.45
    • 2.45598 -> 2.46

Examples

Here are examples of both tax-inclusive and tax-exclusive scenarios:

Example 1: Tax Inclusive

• Monthly rent: $100
• Prorate for March 15 - March 31:
  • Daily rate = $100 * (12 / 365) = $3.29
  • Prorated Rent = $3.29 * 17 = $55.93

Example 2: Tax Exclusive

• Monthly rent: $100
• Tax rate: 20%
• Prorate for March 15 - March 31:
  • Daily rate = $100 * (12 / 365) = $3.29
  • Prorated Rent = $3.29 * 17 = $55.93
  • Taxed Prorated Rent = $55.93 * 1.2 = $67.12

Invoice creation date

How many days ahead of the billing period start date would you like invoices to be generated? (Set to 0 to have the invoices generated on the billing period start date)

Anniversary invoice generation mode: you can have invoices created up to 30 days before the billing period start date.

Example scenario:

• Unit rental invoice date : 15
• Nb. days to create ahead : 10
• Invoices for this unit are generated 10 days before the billing period start date. Therefore, invoices for this unit are generated on the 5th of each month.

Date of month invoice generation mode: you can set a fixed day of the month each billing period should start on (the Invoice period start date) and on which day of the month you want the invoices to actually be created on (the Invoice creation date).

Example scenario:

• Invoice period start date : 1
• Invoice creation date : 15
• Invoice Generation: For the billing period of March 1 to March 31, invoices are generated on Feb 15.

Note: Invoices are generated at 10:00 PM, in the current business timezone setting.

Note: Updating these settings is restricted. If you'd like changes to be made, please contact support@storeganise.com

Invoice charge date

The invoice charge date determines when customers are billed. By adjusting the "Nb days to charge ahead" setting, you can set a date to charge customers that have an automated payment method setup on their account (e.g. credit card).

Please review the example scenario below to see how this setting is used for 2 different customer profiles.

Example scenario

Settings:

• Nb. days to create ahead = 4
• Nb. days to charge ahead = 1
• Billing trigger = Automatic

Customer A:

• User Billing method = Payment gateway and there is a payment method setup (e.g. credit card via Stripe)
• Unit rental Invoice date = 20
• 16th of the month: Invoice created and set to Pending state (no invoice email is sent to the customer at this point).
• 19th of the month: Invoice charge is processed via the gateway. The invoice state changes to Paid or Failed depending on whether the payment was succesful or not.

Customer B:

• User Billing method = Invoice or Billing method = Payment gateway but there is no payment method setup yet
• Unit rental Invoice date = 20
• 16th of the month: Invoice created and sent to customer. Invoice state set to Sent

Note: Updating these settings is restricted. If you'd like changes to be made, please contact support@storeganise.com

Changing between Anniversary and Date of month billing

You may find that you have been using one type of invoicing and need to change to the opposite.

Date of month to Anniversary

In the case of switching from fixed day to anniversary it as as simple as adding the previous fixed day as the invoice date for your users. For example, if you have historically billed users on the 1st of the month you can simply keep '1' as their invoice date.

Anniversary to Date of month

When changing from anniversary to fixed-day billing it will be necessary to prorate a credit for the partial month of rent.

For example, if Storeganise begins billing from 1 March you would first have Storeganise generate all invoices from 1 March to 31 March. Next, you would then go into each invoice and add a prorated credit for customers that already paid for part of March rent.

To demonstrate:

Customer A

• Previousinvoice date : 15
• The customer would have last been billed for the period from February 15 to March 14.
• A new invoice would be generated on March 1 for the period from March 1 to March 31.
• You would then credit this invoice for the 14 days of March they have already paid.
• If monthly rent is $100, that credit would be for -$46.02 (100x12/365*14).

FAQs

How do I change my invoice generation mode?

Please contact us at support@storeganise.com, to change this setting. This needs to be done carefully in order to avoid potentially skipping invoices or overcharging your customers.

If the invoicing date begins on the 31st, how does that apply to months with less than 31 days?

For Anniversary mode: If the anniversary date initially falls on the 31st it will automatically go to the end of the month moving forward.

For Date of month mode: To account for this difference across months, Storeganise prevents setting this date past the 28th for Date of month mode.

How does the 'invoice date' Billing setting on a user's page impact invoice generation?

There is no impact. The user-level Invoice date setting only applies to Valet Storage, operations.