Scenario
A user wanted to generate invoices by splitting a single Purchase Order line into 12 equal monthly installments using a Billing Schedule in NetSuite.
The business requirement was to bill a fixed monthly amount over a 12 month contract period. For example, a 120,000 yen contract should generate 12 monthly invoices of 10,000 yen each.
During testing, the user created a Purchase Order with:
- Quantity = 1
- Unit Price = 120,000 yen
- Billing Schedule = Standard
- Initial Payment Amount = 10,000 yen
However, the generated invoice displayed an unexpected quantity value of 0.15972 instead of quantity 1. The user wanted to understand how Billing Schedules calculate invoice quantities and amounts.
Solution
To achieve your target billing amount, create a billing schedule that includes the following details:
- Initial amount = 0 (zero)
- Initial payment terms = null
- Frequency of recurrence = Monthly
- Repetition interval = 1 month
- Number of repetitions = 12
- Unpaid = OFF
The following is a sample schedule for the settings described above.
data:
- Total amount = 120,000
- Initial amount set in the billing schedule = 10,000
- Frequency of recurrence = Monthly
- Repetition interval = 1 month
- Number of repetitions = 12
Calculation of amount
- First month: 10,000 (initial amount) + 9166.6667 (monthly amount) = 19,166.67
- Monthly amount: 120,000 (total amount) - 10,000 (initial amount) = 110,000 / 12 (12 months) = 9166.6667
- Up to the final month = 9,166.67
Quantity calculation - Since one quantity corresponds to an amount of 120,000, a percentage equal to the quantity is added.
- First month: 19,166.67 / 120,000 = 0.15972225 Quantity
- Until the final month = 9,166.67 / 120,000 = 0.07639 Quantity
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