Invoicing and Payment Schedules
Overview
Note
The scheduling of invoices is controlled by the Payment Schedule Plugin. See Legacy Invoice Scheduling below for details on how Socotra works if the payment schedule plugin is not implemented.
The payment schedule name is set on new policies on creation, either in the UI or when calling the Create Policy endpoint by including the paymentScheduleName
in the PolicyCreateRequest. If not included, the payment schedule will use the default, as described below.
The payment schedule name (along with other data) is provided to the payment schedule plugin which then determines how to interpret and implement the schedule.
Manual Schedule Changes
Along with the ability to control the behavior of a payment schedule, the payment schedule plugin can change an existing policy’s payment schedule from one schedule to another. This affects only future invoices; already-generated invoices will not be affected. To change a policy’s payment schedule, use the following endpoint:
POST /policy/{policyLocator}/paymentSchedule
Name | Position | Type | Required |
---|---|---|---|
paymentScheduleChangeRequest | body | PaymentScheduleChangeRequest | required |
policyLocator | path | string | required |
void
requirednewPaymentScheduleName string
Note
The new payment schedule will be persisted on the policy, and future transactions will be invoiced with the new schedule.
Note
Manually changing the payment schedule requires use of the payment schedule plugin.
Payment Schedule Changes with Endorsements and Renewals
Sometimes policy pricing is dependent on the policy’s payment schedule. For example, you may charge a slightly higher premium for monthly schedules vs. those that are paid up front. For these cases, a payment schedule change must be accompanied by an endorsement in order to trigger the price change.
The payment schedule change operation can be combined with the endorsement or renewal operation to prevent scheduling invoices twice, which could cause problems if any invoices in the first set are issued before they can be rescheduled.
Set the newPaymentScheduleName
property on the endorsement or renewal to have the schedule change take place within the policy transaction.
When the Endorsement or Renewal becomes accepted
, the new payment schedule is used to generate invoices.
When the Endorsement or Renewal becomes issued
, the new payment schedule is persisted on the policy itself and used for all invoice scheduling thereafter.
Note
The policy only has one payment schedule at a time. If an out of sequence transaction is executed, there will be no attempt to resolve what the payment schedule was at the time of the first transaction.
Note
Changing payment schedules in conjunction with an endorsement or renewal requires use of the Payment Schedule Plugin. Enable it before using this feature.
Payments
A payment object marks an invoice as paid and stores data about the payment. Data fields may be configured on payments, except the Group and Lookup field types.
Socotra does not support partial payment or cash allocation in the base version of the application. See the Socotra Plugin Reference Implementations for an implementation of the payment schedule plugin that can be configured to handle some of the related use cases.
Configuration
Payment schedules and terms are defined in policy/policy.json
. The contents of invoices are generated automatically. The data to be stored on payments is defined in /payment/payment.json
.
Policy Configuration
Add defaultPaymentTerms
and paymentSchedules
to policy.json
, as follows.
Both
paymentSchedules
anddefaultPaymentTerms
must be in the configuration.Each configured payment schedule option will be available in a dropdown when creating a policy in the Socotra UI.
The first payment schedule in the list will be the default.
defaultPaymentTerms
determines how long before the due date the system will issue the invoice.{ "fields": [ ], "documents": [ ], "defaultPaymentTerms": { "amount": 7, "unit": "day" }, "paymentSchedules": [ { "type": "total", "name": "upfront", "displayName": "Up Front" }, { "type": "monthly", "name": "monthly", "displayName": "Monthly" }, , { "type": "every_two_weeks", "name": "every_two_weeks", "displayName": "Biweekly" } ] }
Payment Configuration
The file payment.json
contains payment configuration. The only configuration for payments is what fields should be saved on them. For the available data types, see Fields. The Group and Lookup field types are not available on payments.
{ "fields": [ { "name": "payment_ref", "title": "Payment reference number", "type": "string" } ] }
Invoice Templates
When Socotra issues an invoice, it renders the document template policy/invoice.template.liquid
. This template has access to the same data available to other Document Templates, as well as data.invoice_financials
:
data.invoice_financials: { "total_due": number, "total_due_currency": string "gross_premium": number, "gross_premium_currency": string, "gross_taxes": number, "gross_taxes_currency": string "gross_fees": number, "gross_fees_currency": string, "fees": [ { "name": string, "display_name": string, "amount": number, "amount_currency": string, "description": string } ], "tax_groups": [ { "name": string, "display_name": string, "amount": number, "amount_currency": string } ], "financial_transactions": [ { "amount": number, "amount_currency": string, "posted_timestamp": long, "policy_modification_locator": string, "policy_modification_name": string, "type": "premium" | "tax" | "fee", "peril_locator": string, "peril_name": string, "peril_display_name": string, "tax_locator": string, "tax_name": string, "tax_display_name": string, "fee_locator": string, "fee_name": string, "fee_display_name": string } ] }
Invoice Rendering
For policy issuance, the first invoice may be rendered either when the governing quote is accepted
or the policy is issued. This is controlled with the generatingEvent
property in policy.json
. See the Quotes documentation for details.
For endorsements, renewals, cancellations, and reinstatements, invoices are rendered when the associated transaction reaches accepted
state.
For premium reports, invoices are rendered when the premium report is issued.
Legacy Invoice Scheduling
Invoices are normally scheduled with the Payment Schedule Plugin. If the plugin is not implemented, Socotra will fall back to legacy behavior as described here.
Socotra supports the following payment schedules:
total
monthly
annually
semiannually
quarterly
every_two_weeks
every_week
Billing Periods
Billing periods start on the start date of the policy, and stay on the same date of each month (except for the week-based schedules). Invoices become due at the start of the billing period.
The first invoice is issued immediately, and subsequent invoices are issued before the due date according the configured payment terms. Endorsements, cancellations, and withdrawal trigger also immediate invoice issuance.
Invoice Metadata
When examining a list of invoices, such as from the fetch a policy's invoices endpoint, the properties invoiceType
and transactionIssued
property on the PolicyInvoiceResponse can be used to understand the origin of the invoice.
The invoiceType
property can take the following values:
newBusiness
endorsement
renewal
cancellation
reinstatement
installment
premiumReporting
other
The types newBusiness
, endorsement
, renewal
, cancellation
, and reinstatement
are the first in the series of installments after the given transaction type. Subsequent installments are given the type installment
.
The type premiumReporting
is used the invoice attached to each issued premium report.
The type other
is used for all other cases. This is currently only for stand-alone invoices for fees, and for invoices generated before the introduction of this feature.
When a transaction is accepted, an invoice for the transaction is generated, and it is given the invoice type based on what type of transaction it is. If the transaction remains unissued, the transactionIssued
property for that invoice will be false
. After the underlying transaction is issued, the transactionIssued
property will be set to true.