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Billing Core

A billing system is a software solution that generates invoices, tracks payments, and manages customer accounts, featuring key components such as customer management, product and pricing management, invoice generation, and payment processing. It also includes functionalities for recurring billing, accounts receivable, tax calculation, reporting, and security. Optional advanced features may include multi-currency support, CRM integration, and a self-service customer portal.

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27 views3 pages

Billing Core

A billing system is a software solution that generates invoices, tracks payments, and manages customer accounts, featuring key components such as customer management, product and pricing management, invoice generation, and payment processing. It also includes functionalities for recurring billing, accounts receivable, tax calculation, reporting, and security. Optional advanced features may include multi-currency support, CRM integration, and a self-service customer portal.

Uploaded by

sivasekarkk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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A billing system is a software solution used to generate invoices, track payments, manage customer

accounts, and support revenue operations. The core functionality of a billing system includes several
essential modules. Here's a breakdown of its main components and what they do:

🔧 1. Customer Management

 Store and manage customer profiles (contact info, billing address, preferences)

 Track account status (active, delinquent, suspended)

 Manage billing relationships (e.g., parent-child accounts in B2B)

💸 2. Product & Pricing Management

 Define products or services (e.g., subscriptions, one-time purchases)

 Support for different pricing models:

o Flat-rate

o Usage-based (per unit, tiered, volume)

o Discounted/promotional pricing

 Bundle and package multiple services

🧾 3. Invoice Generation

 Automatically generate invoices at defined billing cycles (daily, monthly, etc.)

 Include itemized charges, taxes, discounts, and adjustments

 Customizable invoice templates

📊 4. Usage Tracking & Rating (for metered billing)

 Collect and aggregate usage data (e.g., API calls, storage usage, minutes used)

 Apply rates to calculate charges (rating engine)

 Handle real-time or batch rating

💰 5. Payment Processing

 Integrate with payment gateways (e.g., Stripe, PayPal, banks)

 Support various payment methods: credit/debit cards, ACH, wallets

 Automate payment collection

 Retry logic for failed payments


🔁 6. Recurring Billing & Subscriptions

 Schedule periodic billing for subscriptions

 Handle proration (partial month billing)

 Manage upgrades, downgrades, pauses, and cancellations

 Support trials and renewals

📥 7. Accounts Receivable & Dunning

 Track unpaid invoices (aging reports)

 Generate reminders and dunning emails for overdue accounts

 Automate service suspension for non-payment

⚖️8. Tax Calculation & Compliance

 Calculate applicable taxes (e.g., VAT, GST, sales tax)

 Integrate with tax engines (e.g., Avalara, TaxJar)

 Support for country/state-specific rules and exemptions

📚 9. Reporting & Analytics

 Revenue reports (earned vs. deferred)

 Customer billing history

 Churn, MRR/ARR, LTV metrics for subscription businesses

 Audit trails and logs

🔐 10. Security & Access Control

 Role-based permissions (admin, billing manager, support)

 Data encryption and compliance (e.g., PCI DSS, GDPR)

 Activity logs and fraud detection

Optional Advanced Features:

 Multi-currency & localization

 Integration with CRM, ERP, and accounting systems


 Self-service customer portal

 Credit management and adjustments

If you're building, evaluating, or integrating a billing system, let me know the industry or specific use
case—SaaS, utilities, telecom, healthcare, etc.—and I can tailor this list with relevant features or
architecture suggestions.

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