Multi-Level Billing

The traditional view of billing was to produce a single invoice and impound with payroll, see: Billing. The system assumed the invoice was sent by the service bureau to the end client and the end client would pay the invoice amount to the service bureau. The single invoice model works well for the simple service bureau/end client service model (a one-to-many relationship). The system handles:

  • One invoice — from your bureau to an end client

  • One impound — from the end client to your service bureau

 

However, service bureaus can adopt any number of service models. One such model is the business process outsourcing (BPO) service model, which allows a service bureau to work with business partners—other payroll service providers (“PSPs”)—who have their own clients. Service bureaus that use complex service models must handle the more complex many-to-many relationship. Therefore, the billing feature in Millennium® has the flexibility to handle a more complex model than the single invoice—and can handle future business models that may come along. It supports multiple-level invoices for the many-to-many relationship situation.

 

Millennium® handles:

  • Unlimited invoices — from your bureau to your client, from your bureau to an intermediate client, from an intermediate client to their end client, etc.

  • Unlimited impounds — from your end client to your service bureau, from your intermediate client to your service bureau, from their end client to the intermediate client, etc

 

The three main components of multi-level billing are:

  • Invoice Types
  • Multiple Invoices For a Company
  • Multiple Billing Transfers (Impounds)

 

Invoice Types

To accommodate the unlimited number of levels, the system must know how to handle these situations appropriately. You tell the system how to handle them through “invoice types.” Millennium® uses invoice types to:

  • Categorize and organize invoices
  • Know where to get the payee and payor information for an invoice

All new invoices created in the system are assigned an invoice type.

 

Millennium® allows a service bureau to define as many invoice types as required, corresponding to their business model.

 

Multiple Invoices For a Company

Millennium® has the ability to configure more than one invoice for a company.

 

Company-level billing screens allow you to specify details for each invoice type in the system.

 

When a payroll is processed, each invoice type that has items associated with it is produced.

 

Multiple Billing Transfers (Impounds)

Millennium®’s transfer feature allows for multiple billing transfers (or “impounds”). You can create one impound per invoice type.

 

This feature allows a bureau to:

  • Transfer money from the end client to the intermediate client (or “PSP”)
  • Transfer money from the intermediate client to the bureau
Example of a Multi-Level Billing Model

For example, the XYZ service bureau has a service model that allows them to send out invoices for: end clients, business partners that are payroll service providers (PSPs), and end clients of the business partners.

 

The XYZ bureau defines three invoice types in its system:

  • Client — invoices for end clients that are direct customers of the bureau
  • PSP — invoices for PSPs that are direct customers of the bureau
  • PSPClient — invoices for end clients that are customers of a PSP

When XYZ sets up a direct client company:

  • XYZ configures the company to use the Client invoice type.
  • XYZ defines a single transfer from that end client to their bureau.

When XYZ sets up a company that is serviced by a payroll service provider:

  • XYZ uses the PSP and PSPClient invoice types.
  • XYZ adds any of the billing items they charge the PSP to the PSP invoice.
  • The PSP can add any items they charge their end client to the PSPClient invoice.
  • XYZ sets up a transfer for the PSP invoice with money coming from the PSP’s bank account to the bureau’s bank account.
  • XYZ sets up a transfer for the PSPClient invoice with money coming from the PSP’s end client’s bank account to the PSP’s bank account.

 

List of Tasks to Configure Billing

You must complete several tasks in order to configure billing for a client correctly:

  1. Define invoice types that can be used for any company in your system. See “Create Invoice Types” on page 14.
  2. Define all products and services that can be used by any company. See “Define Products & Services” on page 19.
  3. Set up the different rate scales that will be used by that company. See “Defining Billing Tables (Rate Schedules)” on page 22.
  4. Set up the customers basic billing information and to specify which products and rates will be applied to the customer. See “Configure Service Bureau Billing Information” on page 12.
  5. Configure the clients billing transfers. See “Transfers tab” on page 41.

 

Note: As shipped, the system products in Millennium® are sample products only and should not be used. Please read the section of this webhelp carefully and delete the default products and billing tables. The default products shipped with Millennium® will not produce correct invoices— you must set up your own products!

 

The list of tasks by tabs is as follows:

  1. System > Setup > Misc tab > Sales Tax Codes option (if applicable)
  2. System > Setup > SB Info tab > Billing Info sub-tab
  3. System > Controller > ARClosed Accounts Receivable > Billing Tables tab >
    • Invoice Types option
    • Products option
    • Billing Tables option
  4. [company] > Company Maintenance > Master Company Setup > Billing tab >
    • Setup option
    • Details for [invoice type] option
    • Commissions option
  5. [company] > Company Maintenance > Master Company Setup > Transfers tab