Splitting and Distributing the Billing Amount

As a billing analyst, you may want to split and distribute the billing amount of one period across other billing periods. Billing makes it possible by splitting the billing amount of one BSR and auto-distributing it to multiple BSDs across different billing periods.

To know how Billing works on the Conga Platform, it is recommended to familiarize yourself with its architecture mentioned in Understanding the Billing Architecture on Conga Platform.

Prerequisites:

• The price type must be recurring. If the Billing Frequency = One Time, then Proration allowed in One Time Billing = True.
• Split Distribution Method must not be set to None.
• The BSR to be split must be in "Pending Billing" status.

When you initiate the split and distribution process, Billing splits and distributes the amount automatically based on the distribution method selected at the billing preference level. There will be no change in the status of the BSR or BSD. The BSR, original BSD, and the new BSDs that are created have the status of Pending Billing.

If you are using external systems for invoicing, no invoice must exist for the split BSR periods. If such invoices exist, you must cancel them, or else the distribution can create double invoicing.

To split and distribute the billing amount

1. Bill a Recurring product. Call the Split Distribution API to perform the split and distribute operation. 
   

   

   Contact your administrator to make this functionality available in your application so that upon clicking a button you can call the billing service API.

2. Enter the BSR ID for which you want to perform the split and distribute operation. 

3. Enter the split amount. The split amount must always be a negative value. For example, if the BSR has a fee amount of USD 100,000.00 and you want to distribute USD 50,000.00 to the next schedules, enter the split amount as USD -50,000.00.
   

   

   The split amount must be a negative value between 0.00 and the actual fee amount of the source BSR.

   
   

Billing will split and distribute the amount based on the distribution method selected at the billing preference level:

• If the Split Distribution Method is set to "Defer To Next Schedule", Billing distributes the amount to the next schedule.
• If the Split Distribution Method is set to "Defer To Last Schedule", Billing distributes the amount to the last schedule.
• If the Split Distribution Method is set to "Spread Across Remainder Periods", Billing splits the amount and distributes it evenly across the remaining schedules.

Example

Suppose you are selling computer servicing with a Total Contract Value of $300,000. The billing term is for 3 months starting from 01 Jan 2024  with a recurring billing schedule. You have configured the order line item with the following details:

Billing generates three BSDs and three BSRs with a fee amount of USD 100,000.00.

You may want to adjust the amount on BSR-1 to USD 50,000.00 and defer the remainder of USD 50,000.00 to the next schedule or spread them across the remainder schedules or to the last schedule. All the BSDs and BSRs have the status of Pending Billing. The examples shown below assume that the BSDs are approved and hence their fee amounts are rolled to respective BSRs. All three scenarios are depicted below:

The billing amount is split and distributed to different schedules as per the distribution method selected at the billing preference level.

The source BSRs are not superseded but new BSDs are created under the existing BSRs hence increasing or decreasing the actual fee amount.