Processing Paid Invoices 

Overview 

You can configure to process only paid invoices from Chargebee Billing under the Advanced Connection Settings. Invoices with other status such as payment_due or unpaid will be ignored. This configuration allows for adopting the accounting policy to only recognize revenue when invoices are paid.

When Paid_invoice_only is set to true, the following logic will apply:

Example 

Consider an invoice created in Chargebee Billing on January 1st, and the customer had not yet paid it. The invoice status was marked as "Payment Due". On January 15th, the invoice was fully paid by the customer.

In this scenario, the Order Date in Order Details would be set to January 15th and the Service Start Date would be effective from January 1st. Additionally, the Billing Date in the Billing Schedule would be set to January 15th.

Use Cases 

Credit Note 

In Chargebee Billing, there are two types of credit notes available: Refundable and Adjustment credit notes.

• Refundable Credit Note: A refundable credit note can be applied to paid invoices only, and can have two statuses such as refunded and refund due. The RevRec ETL process will only collect credit notes with a status of Refunded. Credit notes with Refund due status will not be processed till the status changes to Refunded. The credit note refund date will be set as the billing date in the billing schedule. The credit note start date in the order detail input will depend on the credit treatment set for the reason code on the credit note. If the treatment is set to Retrospective, the reference invoice start and end date will be used. For Point-in-Time and Prospective treatment, the date on which the status changed to Refunded will be used, with the effective date set as the credit note issue date.
• Adjustable Credit Note: An adjustment credit note can be used to adjust the amount of an already existing invoice in a Payment Due or Not Paid state. The RevRec ETL process will not pick up any unpaid invoices or credit notes with Adjusted status when the original invoice hasn't been paid yet. This means that if an invoice is issued for $100 and a credit note is issued to adjust it down to $80, (but the invoice hasn't been paid yet) both the invoice and the credit note will be ignored. However, once the invoice is paid, the RevRec ETL process will pick up both the original invoice and the credit note on the date of invoice payment, as the credit adjustment is reflected in the paid_amount.

Partial Payment 

When an invoice is partially paid in Chargebee, the status of the invoice remains as Payment Due and is not changed to Paid. The RevRec ETL will not create any records for Order Details or Billing Schedule, and will instead ignore the invoice.

Unbilled Charge 

Unbilled charges will not be processed by the RevRec ETL in order to create Order Details records. Once the unbilled charges are invoiced in Chargebee, the RevRec ETL will check the status of the invoice.

Pending Collectibility 

When the "Payment Required for Revenue Recognition" flag is set to True while configuring ChargeBee with RevRec, the RevRec ETL will ignore the Pending Collectability functionality if the new property "paid_invoice_only" is set to true. As a result, the "Pending Collectibility" flag will not be set for customers whose invoices are not marked as Paid yet in Chargebee.

Voided and Written-Off Invoices 

Voided or Written-off for unpaid invoices are not processed by RevRec.