PREBILLING Meaning and
Definition
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Prebilling refers to the process of generating or issuing a bill or invoice prior to the completion of the goods or services provided. It is an accounting practice where businesses generate an invoice or bill for a customer before the actual delivery, completion, or consumption of the product or service. The purpose of prebilling is to expedite the billing process and enable businesses to collect payments in advance or in a timely manner.
The prebilling procedure typically entails creating an invoice or bill based on an estimation of the goods or services to be delivered. This estimation may be based on prior agreements, contracts, or a set price list. The prebilling document outlines the terms and conditions of the services, including the quantity, rate, and total amount due. Once the actual delivery or completion occurs, any changes or adjustments required are accounted for in the final invoice, reflecting the accurate price based on the actual consumption or delivery.
Prebilling can be beneficial to both the provider and the customer. For businesses, it helps in cash flow management, allowing them to receive payments upfront and decreasing the time between service delivery and payment collection. It also aids in efficient record-keeping and reduces the risk of delayed or missed invoicing. On the customer's side, prebilling provides them with advanced knowledge of the upcoming charges, enabling better financial planning and budgeting.
Overall, prebilling is a practice employed to streamline the billing process and enhance financial efficiency for both businesses and customers alike.
Common Misspellings for PREBILLING
- orebilling
- lrebilling
- 0rebilling
- peebilling
- pdebilling
- pfebilling
- ptebilling
- p5ebilling
- p4ebilling
- prwbilling
- prsbilling
- prdbilling
- prrbilling
- pr4billing
- pr3billing
- previlling
- prenilling
- prehilling
- pregilling
- prebulling
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