Billing System Guide

Simple invoice generation and tracking system for educational institutions.

🚨 Important: What This System Actually Does

This is an invoice generation and tracking system, NOT a payment processing system. The system:

✅ Generates invoices with configurable settings ✅ Tracks invoice status (sent, viewed, paid, overdue) ✅ Records payments manually (after payments made outside system)
✅ Sends invoice emails with PDF attachments ✅ Applies basic tax calculations (simple percentage) ✅ Manages late fees (configurable percentage)

❌ Does NOT process payments (no credit card processing) ❌ Does NOT integrate with payment gateways (no Stripe/PayPal integration) ❌ Does NOT handle banking (no bank account management)

💰 Invoice Generation System

Invoice Settings Configuration

Basic Invoice Settings:

Available Configuration Options:
- Invoice prefix (default: 'INV')
- Invoice numbering and padding
- Billing cycle (monthly, quarterly, semi-annual, annual, custom)
- Billing day of month (1-28)
- Payment terms in days (default: 30)
- Late fee percentage (0-100%, default: 0%)
- Grace period for late fees (default: 7 days)

Tax Configuration:
- Tax enabled/disabled toggle
- Tax percentage (0-100%)
- Tax name (e.g., "VAT", "GST")
- Tax registration number (text field)

Email Settings:
- Auto-send invoices when generated
- Payment reminder frequency
- Overdue notice frequency
- Email whitelist status

Invoice Creation Process

Manual Invoice Generation: 1. Create Invoice: Select institute and billing period 2. Add Line Items: Course enrollments, fees, adjustments 3. Calculate Totals: Subtotal + tax - discounts + late fees 4. Generate PDF: Professional invoice layout 5. Send Email: Automatic or manual email delivery

Recurring Invoice Profiles:

Automated Billing Setup:
- Create recurring profile for institute
- Set billing day and frequency
- Include/exclude enrollment types
- Configure pricing rules
- Schedule automatic generation

📊 Invoice Management

Invoice Status Tracking

Invoice Lifecycle:

Status Progression:
1. Draft → Invoice created but not sent
2. Sent → Invoice emailed to institute
3. Viewed → Institute opened the invoice
4. Partial → Partial payment recorded
5. Paid → Full payment recorded
6. Overdue → Past due date with no payment
7. Cancelled → Invoice voided
8. Refunded → Payment refunded

Payment Recording (Manual)

Recording Payments:

Payment Methods Available:
- Bank Transfer
- Credit Card (record externally processed payments)
- Debit Card (record externally processed payments)  
- PayPal (record externally processed payments)
- Stripe (record externally processed payments)
- Cash
- Check
- Other

Payment Information Recorded:
- Payment amount
- Payment date
- Payment method
- Transaction/reference number
- Notes

Important: The system only RECORDS payments that were processed elsewhere. It does not actually process credit cards or integrate with payment gateways.

📈 Financial Tracking

Basic Analytics

Available Reports:

Invoice Statistics:
- Total invoices generated
- Pending payment amounts
- Overdue invoice counts
- Revenue by time period
- Payment collection rates

Invoice Lists:
- Filter by status, date, institute
- Search by invoice number
- Export to PDF/CSV
- Bulk operations

Late Fee Management

Automated Late Fee Calculation:

How Late Fees Work:
1. Invoice becomes overdue after due date
2. Grace period applies (default 7 days)
3. After grace period, late fee applied once
4. Late fee = (subtotal × late fee percentage)
5. Total amount updated automatically

Example (5% late fee):
- Original invoice: $1,000
- Due date: January 15
- Grace period: 7 days (until January 22)
- January 23: Late fee applied = $50
- New total: $1,050

📧 Email Integration

Invoice Email System

Email Capabilities:

Automated Emails:
- Invoice delivery with PDF attachment
- Payment reminders before due date
- Overdue notices after due date
- Payment confirmation emails

Email Tracking:
- Email sent timestamps
- Email view tracking
- Delivery status monitoring
- Bounce/failure tracking

Email Configuration: - Institutes must be whitelisted for email notifications - Configurable reminder schedules - Custom email templates - SMTP server integration required

🔧 System Limitations

What You Need to Handle Separately

Payment Processing: - Set up external payment gateway (Stripe, PayPal, etc.) - Process payments outside this system - Manually record payments in the system

Banking: - Manage bank accounts separately - Handle deposits and transfers externally - Reconcile payments manually

Tax Compliance: - System only calculates basic tax percentage - Generate official tax reports separately - Handle tax filing outside the system

Financial Reporting: - Export data for accounting software - Create detailed financial reports externally - Manage complex financial analysis separately

📋 Setup Instructions

Initial Configuration

Step 1: Invoice Settings 1. Go to Institute → Invoices → Settings 2. Configure invoice prefix and numbering 3. Set billing cycle and payment terms 4. Configure tax settings if applicable 5. Set up late fee policy

Step 2: Email Setup 1. Configure SMTP server for email sending 2. Request email whitelist approval if needed 3. Test invoice email delivery 4. Set up reminder schedules

Step 3: Create Recurring Profile 1. Set up automated billing schedule 2. Configure what to include in invoices 3. Set pricing rules and terms 4. Schedule first invoice generation

Daily Operations

Generate Invoices: 1. Manual generation for specific periods 2. Automatic generation via recurring profiles 3. Review and approve before sending 4. Send via email or download PDF

Record Payments: 1. Receive payment notification from external system 2. Record payment details in invoice system 3. Update invoice status automatically 4. Send payment confirmation if needed

Monitor Overdue: 1. Review overdue invoice dashboard 2. Send follow-up communications 3. Apply late fees as configured 4. Track collection efforts

🎯 Best Practices

Operational Guidelines

Invoice Generation: - Review all invoices before sending - Ensure accurate line item details - Verify tax calculations - Test email delivery regularly

Payment Tracking: - Record payments promptly - Include reference numbers - Maintain detailed notes - Reconcile regularly with external systems

Data Management: - Regular data backups - Export for accounting software - Monitor system performance - Keep audit trails

Integration Recommendations

External Systems to Consider: - Payment gateway (Stripe, PayPal, Square) - Accounting software (QuickBooks, Xero) - Banking platform for deposits - CRM for customer management - Email marketing tools

Workflow Integration: 1. Student enrolls → System generates invoice 2. External payment processor → Collects payment 3. Manual entry → Record payment in system 4. Automatic update → Invoice marked as paid 5. Email notification → Payment confirmation sent

This billing system provides solid invoice management but requires external integration for complete financial operations.