Ad hoc invoices allow you to sell services or items on a non-recurring basis to your subscription customers. They are different from Sign-up or Renewal invoices, which are automatically generated and are dependent on the related subscription. An ad hoc invoice may be created even if the subscription has been canceled or is on hold.
Create an Ad Hoc Invoice
Select a Subscription and navigate to the Invoice listing. Click Create New Invoice.
An invoice will be created in “Draft” state with pre-populated Subscriber information. You may edit most aspects of the draft invoice and add line items with a title, quantity, unit price and service period dates. Listed below is an overview of several options on the Ad Hoc Invoice.
- Editable Text
Click the Pencil icon () to edit the Contact information, Billing or Shipping addresses, Memo, or Payment Instructions.
- Issue and Due Dates
- Right below the invoice number, click Edit Dates to change the Issue and/or Due dates.
- Select the Net Terms, which is the number of days after an invoice is issued that the invoice is due.
- The Issue Date must be today (Now) or a date from the past; you cannot select an Issue Date that is in the future.
- Depending on the Net Terms, the Due Date will either be automatically given or you can manually enter a date in the future.
- Line Items
- To add a line item, enter your title, quantity, and unit price (with up to 10 decimal places, otherwise the price will be rounded).
- Or select from the drop-down list of recent products/components from the Catalog.
- Advanced Billing calculates the total line amount for you.
- You provide the quantity, or
- Either you provide the
Unit Price, or Advanced Billing calculates the
Unit Pricebased on the price point of a given product or component from your Catalog.
- You provide the quantity, or
- You can also enter an optional Date Range to represent the service period. If a date range is not specified, the default is a start and end date of today (Now).
- If the item is subject to taxes, select the Tax Type.
- Invoice Line Item Totals update in real time.
- To save the Line Item, click Add Line Item.
- Repeat this process to add multiple line items.
- To edit or delete a Line Item, click the More icon (...) next to the added Line Item.
- You can select from the drop-down of coupons from the Catalog.
- Or you can enter an ad hoc coupon.
- To add a Coupon Description, click the More icon (...) next to the coupon entry to open the Advanced Options.
- Payment Options
- You have the option to set the payment collection as remittance or immediate process.
- For the immediate process payment method, should the processing of the payment method fail, you can choose to roll back the creation of the ad hoc invoice or issue the ad hoc invoice as "Open". In the latter case, if the Subscription is Automatic, collection is attempted at the next renewal.
Taxes on Ad Hoc Invoices
If the product has taxes enabled, then the Tax Type is automatically selected. You can, however, edit the Tax Type for the line item. Select Other to enable the option to provide a given Tax Code.
Tax Codes are only available for use with Avalara taxes, and not Custom Taxes.
Tax amounts are automatically calculated when you click Add Line Item. Additionally, changing the shipping or billing address after marking a line item as taxable results in recalculating the tax amounts.
Keep in mind that tax calculation depends on shipping or billing addresses and tax settings. In order for the invoice line item to be considered taxable, the invoice must have a valid shipping or billing address. The address information must be complete, and be formatted properly in order to correctly determine the tax locale of the charge (see Country and State formats). Also consider if the Customer is tax exempt. In this case, the tax cannot be added to the Ad Hoc Invoice until you update the Customer record.
If the Customer's address is not in a taxable region or if the Customer is tax exempt, you will be prompted by a notice similar to the following (respectively):
How taxes are calculated depends on how the site is configured to collect taxes:
- If Custom Taxes are enabled for the site, please confirm that the invoice’s shipping/billing address overlap with the geographic regions defined in your tax rules and check EU VAT distinctions.
- If Advanced Billing Managed Sales Tax is enabled on the site, please confirm that the invoice’s shipping/billing address overlap with the taxable regions you defined and check your Avalara VAT Tax configuration.
- If Link My Avalara Account is enabled on the site, Advanced Billing will use your account to ask Avalara for tax amounts.
Issuing the Ad Hoc Invoice
Issuing the invoice sets the invoice status from "Draft" to "Open" and allows it to be paid. Until you click Issue Invoice, it remains in "Draft" status. Unissued (draft) ad hoc invoices can still be found on the Invoice list. So, you may navigate away and come back to it later to finish your work.
When you issue the invoice, the following happens:
- The invoice status is set to “Open” and it becomes available for payment.
- You may then collect payment on the invoice from within Advanced Billing.
- Your customer may pay the invoice by credit card (or ACH if enabled) if you share the online invoice with them.
- No email will be sent unless you explicitly send the invoice to the customer.
Using Updated Customer Information
What happens if the customer information, or custom fields on the customer record or subscription, changes? In the case of Ad Hoc Invoices, if the invoice is still in Open status, then a notice appears at the top of the invoice, which allows you to accept the updated information.
For more information, see the Update Invoice Customer Information article.