Account Hierarchy - Invoice Rollup

Overview

Account Hierarchy - Invoice Rollup provides the ability to consolidate line items from multiple accounts in an account hierarchy, and bill them to the parent account in one invoice. This is in contrast to the default billing behavior, wherein a separate invoice for each child account is billed to the parent account.

This functionality is powered by Recurly's Calendar Billing feature as described below:

  • Using Calendar Billing - Aggregate Invoices, charges from child account's, and the parent account, will consolidate onto one invoice, billed to the common parent account so long as the the child account's are configured to bill to the parent account and all other conditions are satisfied.
  • Using Calendar Billing - Alignment, subscription bill dates on any account within a hierarchy can be automatically aligned to the bill date on the common parent account.

One-time charges

  • One-time charges that exist on an account (parent or child), prior to an invoicing event, are included in the consolidated invoice along with any recurring charges, provided that they do not include a shipping address. One-time charges that are billed immediately will invoice separately.

Interface Updates

PDF and Emails

  • All invoice related emails will reflect charges consolidated from multiple accounts within a hierarchy, viewable as part of the inline HTML / Text representation of the invoice. Charges will not be grouped by the account from which they originated, but email templates can be modified to show the account information at the line item level

  • All invoice PDFs will also reflect charges consolidated from multiple accounts within a hierarchy. The charges will be grouped by the account from which they originated, along with information about the account (e.g. Account Code, etc.)

Recurly Admin & Hosted Invoices

  • Consolidated invoices are also viewable from the invoices show page in the Recurly Admin UI and the hosted invoice page, and will reflect the representation provided by the PDF

API Support

  • Invoice charges can be retrieved from Recurly API v3 using the invoices or line item endpoints. The charges will identify both the account they were billed from (e.g. parent or child), as well as the account they were billed to (e.g. parent or child). Recurly API v2 is also supported.

Instructions for Use

Configuration and Setup

A new feature flag has been created called 'Account Hierarchy - Invoice Rollup'. In order to use the functionality listed above, this flag must be enabled on your Recurly site in addition to the 'Account Hierarchy' and Calendar Billing - Aggregate Invoices feature flags. These flags can be enabled by contacting our support team.


Usage with Calendar Billing - Aggregate Invoices

Assume there are two child accounts, A and B, that bill to a common parent:

Consolidation of recurring charges

  1. Create one or more subscriptions on child account A using the Purchase or New Subscription endpoints. Alternatively, you can use the Recurly UI to create a subscription on the Account.

  2. Create one or more subscriptions on child account B that share the same bill date (down to the second) as the subscription(s) on child account A

  3. When an invoicing event occurs (ie. common bill date on the subscriptions is reached), the recurring charges from the subscription(s) on Child Account A will be invoiced together with the recurring charges from the subscription(s) on child account B, and you should be able to observe the following:

  • The PDF representation of the consolidated invoice will display the charges, grouped by the accounts from which they originated, along with the account code, and the name and company (if they are populated on the Account). The PDF can be seen as an attachment on invoicing related emails, and accessed through the hosted pages and Invoices detail page in Recurly Admin UI.

  • View the consolidated invoice and line items using the Recurly API v3 or v2.

Note: Parent subscriptions can also be aligned with subscriptions on their child accounts, which will enable their own charges to also be included in the consolidated invoice.


Consolidation of recurring charges with one-time charges on an Account

  1. Create a one-time charge on Child Account A. This should be a one-time charge that bills at next invoice date and not an immediately invoiced one-time charge.

  2. Complete steps 1 and 2 from above

  3. Same as 3 above, but the one-time charge on Child Account A will also be included


Mix and Match

Time to get creative! It's entirely possible to create various 'billing batches' by aligning subscriptions on various groups of Accounts within an Account Hierarchy. For example, you can set the subscriptions on Child Accounts A and B to bill on the same date, and the subscriptions on the Parent, and Child Accounts C and D to bill on the same date, to get two different sets of consolidated invoices.

Usage with Calendar Billing - Alignment

Account Hierarchy can also be used with the Calendar Billing - Alignment feature in order to further automate the process of lining up subscription bill dates. Contact support to have the Alignment feature flag enabled in order to leverage this functionality.

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If the Calendar Billing - Alignment feature is enabled, subscription bill date alignment will also apply to accounts that are not part of a hierarchy. In these cases, the subscriptions added to an account will align based on its own bill date, as per the standard aligning logic for Calendar Billing - Alignment.

Account Bill Date

When Calendar Billing - Alignment is used in conjunction with Account Hierarchy, the parent account's bill date will be used to align any subscriptions added to one of it's child accounts, provided that the child account bills to the parent account instead of itself. Otherwise, the child account will use its own account bill date as the basis for the alignment. The same logic applies to the setting of the account bill date itself. If a parent account does not have an account bill date, it can be set based on subscription activity on one of its child accounts or itself. Otherwise it uses the standard aligning logic.

Taxation

By default, all line items on the consolidated invoice will be taxed based on the parent account's taxable address. However, if it is desirable to tax a child account's group of line items based on it's own address, a new setting has been provided to enable this functionality. The child's taxable address will be based on the its account address only. If there is no account address provided for the child account, it will fall back to using the parent account's taxable address.

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Shipping Addresses Not Supported

Shipping addresses can not be used in conjunction with AH Invoice Consolidation at this time. Any recurring, or one-time, charges that have an associated shipping address, will be excluded from consolidated and will be invoiced by themselves or at the next eligible invoicing event.

Coupons

Coupons can be added individually to child accounts or applied to subscriptions on a child account using all the standard rules for coupons. Any discounts originating from a coupon will be applied only to the charges that originate from that given child.

Credits

All standard rules for credits used in conjunction with Account Hierarchy apply. Credits are applied to the invoice in its entirety and not to the individual line items. Only credits that exist on the parent account can be used.

Refunds

All refund types are supported.

Gift Card Redemptions

Follows standard logic as specified here