Question

what are the logical requirements of a billing system with explanation for each (mention 3 minimum) and some examples of applications that use billing system and provide the technical specification of it

Answer 1

Here is the solution for the above question.

‘Billing software tools’ or 'Billing System' are the programs that handle and monitor the billable products and services delivered to a customer or set of customers. These software tools automate most of the billing processes and ease the billing work.

Top few of these software tools are FreshBooks, Tipalti, Sage 50cloud, FreeAgent, Sage Business Cloud Accounting, Zoho and vCita with each of there pro and cons.

The common thing in these software tools are that they follow the same basic billing logic, which is as follows.

• Ordering : These are the operation performed
  • To store the customer contact a client record is created.
  • A record is created for the services and domain to keep track of services selected by the customer(s).
  • A record is created for the invoice.
• Invoicing : operations are as follows
  • Setting up the product automatically as soon as manually accepting pending order.
  • Setting up the product automatically as soon as order is placed.
  • Setting up the product automatically as soon as first payment is made.
• Continuous Invoice Generation : This feature help the user to generate the invoice automatically on the next due date and send it automatically to the client
  • Insure that all item are available at the time of due invoice .
  • Checking and informing if the quantity of item is less and due date is coming.
  • Incrementing the next invoice date by one billing cycle.
• Payments : This features help the user to change the status to ‘Paid’ when payment is recived and also decrease the paid item from the total available items.
  • Database is updated with a transaction.
  • Invoice balance is updated as per the payment made.
  • Balance is changed to zero and invoice is marked ‘paid’.

Examples of services using Billing System.

• Shivar Web Consulting uses ‘FreshBooks’ for billing.

It uses it to maintain the record of PayPal transaction and google sheets. It helps them in accounting, invoicing, bookkeeping, and other financial tasks.

• Venture Gained Legal uses FreshBooks’ for billing.

It charges user on the bases of per hour and uses FreshBooks to generate and manage invoice. It also help to keep track of the invoices and inform if not paid in time to both client and user.

Note: If you are still unable to understand then comment with it and i will be happy to help.