Billing in arrears

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Posted on by MK-27051517-0

We currently bill at the beginning of the billing cycle, but we now have a few customers that require to be invoiced in arrears/at the end of the billing cycle. Is there any certain way I can set these customers up? We have the recurring rental contract line. This has a spot for the initial beginning of the rental. We then have the next billing date and the end of that billing period along with a billing cycle code.

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Microsoft Dynamics CRM

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Saif Ali Sabri

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Billing in arrears

Yes, Dynamics 365 can support billing in arrears for specific customers using Recurring Rental Contract Lines. Here’s a structured approach to set this up:

✅ Goal
Bill some customers at the end of their rental periods, instead of the start.

🛠️ Solution Overview
You can achieve billing in arrears by adjusting the billing schedule settings on the rental contract lines for those customers.

🔧 Step-by-Step Setup for Billing in Arrears

Identify the Customer
- Tag or mark the customer in your system (e.g., via a customer group, billing profile, or custom field) to indicate they should be billed in arrears.
Open the Rental Contract
- Go to: Rental Management > Rental Contracts
- Select the customer’s rental contract or create a new one.
Set the Contract Line for Billing in Arrears
- In the Recurring Rental Contract Line section:
  - Start Date: Beginning of the rental.
  - Next Billing Date: Set this to the end of the first rental period.
  - Billing Period End Date: Matches the same as above (end of the billing cycle).
  - Billing Cycle Code: Ensure the cycle code reflects the period frequency (e.g., monthly).
Ensure System Processes Arrears Billing
- The system will generate invoices based on the Next Billing Date.
- Since the invoice is only created when the period ends, it functions as billing in arrears.
Optional – Automate by Billing Profile
- You can create a custom Billing Profile or contract template for customers billed in arrears, so future contracts are preconfigured accordingly.

📌 Notes & Best Practices

If you're using Project Operations or integrated Subscription Billing, ensure that recognition schedules and billing rules also align with arrears logic.
Use comments (like shown in your example) to clearly state the rental period for auditing and clarity.
Contract Line Items should still reflect the correct quantity and rental item (e.g., "Truck Rental – SN363752").