Some contracts may be billed monthly, some quarterly, and some annually. To identify different billing cycles, create and maintain codes in Billing Cycle Code Maintenance (11.5.18.1).

The Quantity to Bill value represents the number of months in the billing cycle. A default billing cycle can be specified in the SSM Accounting Control (36.9.10). When new contracts are created, this billing cycle is used by default. However, each service contract can be set up with a different billing cycle if needed.

When a contract is released to invoice with this billing cycle, the invoice amount is calculated by multiplying the unit price by the number of units covered, and then multiplying this amount by the number of service periods in this billing cycle (Qty to Bill).

In this example, a monthly billing cycle code has been set up with Qty to Bill equal to 1, billing for service each month. When this contract is released to invoice, the next bill date is automatically set one month ahead.