🧾Invoicing

The Octoo invoicing system allows providers to earn and customers to pay their bills effortlessly.

There are three different types of invoices: a proforma invoice, an Account Receivable (AR) invoice, and an Accounts Payable (AP) invoice.

• PROFORMA — a proforma describes the total earned/billed for a specific service that a provider rendered. A proforma is attached to an AP and/or AR invoice for payment and contains one or more slips (line items) for services.

• AR — an AR invoice is what customers are billed for services they have been provided. An AR invoice will contain one or more proformas as well as inidividual slips.

• AP — an AP invoice is what providers submit to the partner for payment for services they have provided. An AP invoice will contain one or more proformas as well as individual slips.

• Slip — a slip is a line item that goes on an invoice.

In our legacy application a proforma was called a service invoice.

Proforma invoice

The proforma invoice is what is generated for some kind of billable service. It can be attached to a Bid or a Schedule or a Assignment or a Reservation. It contains the slips that indicate who is earning or paying for what when it is finally attached to either an AP or AR invoice (or both).

A proforma invoice is generated automatically by the API either:

1. When a job's outcome is finally published.

2. When a reservation shift is finished and all other proforma invoices related to the shift are submitted (this happens via a worker).

3. When a schedule/request is in the past (also via a worker).

AR invoices

Customers are sent AR invoices (bills). These bills contain one or more proforma invoices for services rendered as well as additional slips (if needed). AR invoices can be generated based on the customer's preferred schedule (after each service, every day, weekly, monthly, etc).

Customers can also leverage expense codes (e.g., "purchase orders" or "authorization codes") that are entered during the new request process and brought over to the invoice.

We also support uploading required financial documents during the new request process which will also be attached to invoices.

Child AR Invoices

Generally, AR/AP invoices only have proforma child invoices. However, there is one other special use case that allows for an AR invoice to also have a child AR invoice.

A child AR invoice is created to "share" payments for the same proforma invoices with another customer.

For example, let's say there is an AR invoice (#1) for Customer A that is for $2,000 total but there is an agreement that Customer B will split the payment.

1. API will generate the original AR Invoice (#1) that belongs to Customer A. All the proforma invoices on this AR alos belong to Customer A. Total due is $2,000.

2. An admin manually creates a new AR Invoice (#2) with no PFs attached and applies a general slip for the amount the second customer has agreed to share ($1,000). Invoice #2 would have different billing information than Invoice #1 (and could even have a difference customer). It only has one slip and no proforma invoices.

3. Admin then manually attaches Invoice #2 (child) to Invoice #1 (parent/original).

4. This act decreases the Invoice #1's #outstanding_balance_units by the amount that Invoice #2 is contributing (in this case $1,000).

AP invoices

After a provider has completed their services and confirmed them an AP invoice can be generated and will be paid by the partner in the agreed timeframe.

Slips

Most slips you see will be on proforma invoices (although they can go directly on AR/AP invoices as well and do sometimes). Each slip represents a line item charge for certain items: services rendered, mileage, tolls, prep time, booking fees, etc.

Each slip is defined by its slip type (e.g., service or mileage or reimbursement). Some slips require a pay schedule rate (e.g., "weekday", "weeknight", etc) while others do not. A pay schedule informs the user about where the rate information is coming from. For example, a service slip with a pay schedule rate of "weekday" would inform the user they are being charged their weekday rate for that service.

A slip has a quantity as well as a rate that tracks what is charged to a customer and billed by a provider. More information about billing is in the agreements section.

Time-based policies

A proforma invoice is impacted by time-based policies that are applied to the service (provider and customer). See the agreement's time-based policy section for more information on how these are applied.