Property billing is a critical task in property management, yet it often comes with significant challenges. As businesses grow and manage multiple properties, tracking leases, utilities, maintenance services, and payments becomes increasingly complex.
Errors in billing, missed deadlines, and slow payments can all lead to poor cash flow and strained tenant relationships.
NetSuite property billing is designed to address these challenges by providing a unified, cloud-based solution that automates and streamlines the entire billing process.
This blog will explore how NetSuite simplifies property billing, the key features it offers, and how you can use it to optimize your billing process. Keep reading.
TL;DR
- Automated Billing: NetSuite Property Billing automates recurring charges like rent, utilities, and maintenance, reducing manual entry and improving efficiency.
- Customization: Property managers can customize billing schedules for different properties, tenants, and services, offering flexibility and accuracy.
- Seamless Integration: NetSuite integrates with other financial systems and platforms like RIOO, streamlining property management and financial tracking in one place.
- Improved Cash Flow: Automated reminders, invoicing, and tracking reduce delays, ensuring timely payments and better cash flow management.
Before diving into the solution, it’s important to understand the common challenges property managers face with property billing.
Challenges in Property Billing
Property billing in the real estate industry often involves a series of complexities, especially when dealing with a large portfolio of tenants, varied lease terms, and multiple services.
These challenges can create inefficiencies and lead to inaccuracies in the billing process. Here are some key challenges property managers face:
1. Complexity in Managing Property Invoices
Different types of charges (rent, utilities, maintenance) require distinct handling, making manual management prone to errors.
2. Property-Specific Billing Requirements
Commercial and residential properties may have unique billing structures, adding difficulty to tracking and managing.
3. Streamlining Invoice Generation and Tracking
Managing multiple invoices and tracking payments manually is time-consuming, with frequent updates needed for accuracy.
NetSuite’s automation and customization help simplify and streamline these processes, reducing errors and improving billing efficiency.
What is NetSuite Property Billing?
NetSuite Property Billing is an advanced, automated solution built to simplify the complexities of invoicing within the property management industry.
As part of NetSuite’s robust ERP system, it provides property managers with the tools necessary to streamline billing operations, from lease payments to utility billing and maintenance fees.
At its core, NetSuite Property Billing integrates with various aspects of property management, including:
- Lease Agreements: Automatically generates invoices based on the lease terms, making it easy to track rent payments.
- Utilities and Maintenance: Billing for services rendered, like utilities or repairs, is automated and integrated with tenant accounts.
- Recurring Billing: For services like monthly rent or recurring property maintenance, billing schedules are set up to automatically charge tenants at defined intervals.
Key features of NetSuite Property Billing include:
- Customization of Billing Schedules: Property managers can define specific billing intervals (e.g., monthly, quarterly) and even apply different schedules to individual tenants or properties.
- Seamless Integration with Financial Modules: This ensures that the invoicing process is linked with broader accounting and financial reporting systems, reducing the chances of errors.
- Automated Invoice Generation: Once billing schedules are configured, invoices are automatically generated and sent to tenants based on the established terms.
With these capabilities, NetSuite Property Billing provides a comprehensive solution that simplifies tenant invoicing, improves cash flow, and reduces the need for manual intervention.
To understand how to optimize your billing operations, let’s look at NetSuite’s Advanced Billing feature, which simplifies billing for recurring services and long-term contracts.
Simplifying Property Billing with NetSuite Advanced Billing
NetSuite’s Advanced Billing feature is designed to simplify and automate the billing process for property managers, especially those dealing with recurring charges and long-term contracts.
Here’s an in-depth look at how Advanced Billing can transform property billing.
What is Advanced Billing?
Advanced Billing allows property managers to create billing schedules for sales orders, services, or memberships that span over a period of time.
Instead of generating a single invoice for the entire sale, Advanced Billing enables multiple invoices to be generated based on predefined intervals, such as monthly, quarterly, or annually.
This is particularly useful for property managers handling leases, subscriptions, or maintenance contracts, where payments need to be split across the lease or contract duration.
How Billing Schedules Work?
NetSuite uses billing schedules to track when and how much to bill customers. These schedules allow for flexible billing arrangements, ensuring tenants or clients are billed appropriately according to the terms of their leases or service agreements.
For example, a property manager can set up a billing schedule for a one-year lease, with monthly payments of $500. The system will automatically create and send invoices each month for the next 12 months, without requiring manual intervention.
Here’s a brief example of how billing schedules work in practice:
- Initial Invoice: 50% of the total sale amount is billed on the start date.
- Subsequent Invoices: The remaining balance is split into equal payments over the next several months.
Example:
- A lease with a $1,000 total amount and a billing schedule set to monthly:
- January 15th: Initial invoice for 50% = $500
- February 15th: Second invoice for 25% = $250
- March 15th: Third invoice for 25% = $250
Benefits of Billing Schedule
- Flexibility: Billing schedules can be customized for various needs. Property managers can create schedules for specific lease terms, such as monthly, quarterly, or annual billing.
- Automation: Once a billing schedule is set, invoices are automatically generated and processed according to the specified terms. This removes the need for manual intervention and reduces the risk of errors.
- Transparency: Tenants have clear visibility of when their next payments are due, improving tenant satisfaction and reducing misunderstandings related to payments.
Set Preferences for Advanced Billing
NetSuite offers additional features that allow property managers to invoice in advance of fulfillment.
This option is especially useful for managing service contracts, memberships, or long-term projects, where payments need to be collected before services are rendered or leases are fulfilled.
For example:
If a property manager is handling a service contract that spans over a year, they can invoice the entire amount in advance, allowing for smooth cash flow management throughout the year.
Related NetSuite Features
- Project Management: Advanced Billing can also be integrated with Project Management for construction or renovation projects, where payments are due at different milestones or phases.
- Advanced Shipping: For property management scenarios involving physical assets (e.g., amenities, maintenance), Advanced Shipping can be integrated with Advanced Billing to handle the invoicing process once the items are shipped or services are provided.
Maximize billing efficiency with NetSuite's Advanced Billing. Automate your billing schedules for long-term leases and maintenance contracts. Pair it with RIOO's real-time financial insights and automated rent collection to further simplify your property management.
Once you understand the benefits and features of Advanced Billing, it’s time to see how you can set up and customize billing schedules in NetSuite to fit your property management needs.
Also Read: How Property Management Companies Can Streamline Maintenance with SmartTools
Step-by-Step Process for Creating Billing Schedules in NetSuite
Creating and managing billing schedules in NetSuite is a straightforward process that can be customized to meet the specific needs of property managers.
Here are the steps involved in setting up and applying Advanced Billing Schedules to sales orders or property leases, ensuring an efficient and automated billing process.
Creating Billing Schedules
To take full advantage of NetSuite’s Advanced Billing features, property managers first need to create a billing schedule. Here’s how to do that:
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Navigate to Billing Schedules
Go to Lists > Accounting > Billing Schedules > New to create a new billing schedule.
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Define Billing Schedule Elements
- Initial Amount: Enter the amount to be billed on the first invoice. This could either be a fixed currency amount or a percentage of the total sale (depending on whether it is applied to the entire order or line items).
- Recurrence Frequency: Specify how often billing will recur (e.g., monthly, quarterly, yearly). This defines how frequently invoices will be generated.
- Recurrence Count: This field determines how many recurring invoices will be generated after the initial bill. For example, if it’s a one-year lease with monthly payments, the recurrence count will be set to 12.
- Initial Payment Terms: Choose the terms for the first billing instance (e.g., net 30, net 60), which sets when the initial payment is due.
- Recurrence Payment Terms: Select terms that will apply to subsequent recurring invoices.
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Set Customization Options (Optional)
- Custom Recurrence Frequency: For more flexible billing, you can set a custom recurrence frequency (e.g., every 15 days, every 6 weeks). This provides the flexibility to accommodate unique property management billing cycles.
- Relative to Previous Billing: If you prefer future bills to be relative to the previous bill (rather than the initial billing date), you can select the Relative to Previous option.
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Save and Apply the Billing Schedule
Once you have configured the billing schedule to meet your needs, click Save. The schedule is now ready to be applied to sales orders or leases.
Applying Billing Schedules to Sales Orders
Once the billing schedule is created, it can be applied to individual transactions (sales orders or lease agreements). Here’s how:
- Go to Sales Orders:
Navigate to Transactions > Sales > Enter Sales Orders to create or edit a sales order.
- Assign the Billing Schedule:
On the Billing subtab, locate the Billing Schedule field and select the appropriate schedule. You can either apply the default schedule or choose a specific one for individual line items or the entire order.
- Set Start Date:
In the Start Date field, enter the date when the first invoice should be generated. If left blank, the default start date will be the date the sales order is created.
- Save the Sales Order:
Once you’ve assigned the billing schedule and other details (such as the customer and items), click Save. The billing schedule is now attached to the sales order, and future invoices will be generated automatically based on the schedule.
Creating Billing Schedules for Line Items
For more granular control, property managers can apply billing schedules to individual line items within a sales order. This is particularly useful when different items within the same order have different billing frequencies.
- Customize Transaction Forms:
Go to Customization > Forms > Transaction Forms, and modify the form to show the Billing Schedule field for individual line items.
- Assign Billing Schedule to Line Items:
When creating or editing a sales order, on the Items subtab, select the line item and assign a specific billing schedule from the Billing Schedule field. This allows for different billing terms for each item, such as different lease terms for various units or charges for services and utilities.
Using Billing Schedules for Subtotals
For certain transactions where you need to apply the same billing schedule to the subtotal rather than individual items, NetSuite allows you to create billing schedules for the entire subtotal.
- Set Recurrence Frequency to Custom:
For a sales order that includes multiple items, select Custom as the Recurrence Frequency and check the Apply to Subtotal box.
- Define Payment Terms:
In the Recurrence Payment Terms field, select the terms that will apply to all subsequent invoices.
- Save the Transaction:
Click Save to finalize the order with the customized billing schedule applied to the subtotal.
Example: Applying a Billing Schedule to a Lease
Let’s assume a tenant signs a one-year lease agreement for a property worth $12,000. The billing schedule is set to monthly with a recurrence count of 12.
- Initial Amount: $1,000 (50% of the lease amount)
- Subsequent Amount: $250 for the next 11 months.
- Recurrence Frequency: Monthly
- Recurrence Count: 12 months.
NetSuite will automatically generate invoices each month for the tenant, with the first invoice issued for $1,000 on the start date, followed by monthly invoices of $250 for the remainder of the year.
Now that we’ve covered the basics of NetSuite’s billing capabilities, integrating it with RIOO can further enhance your billing and property management processes.
Also read: 5 Mistakes That Cost Industrial Property Managers Time and Money
Optimizing the Property Billing Process with NetSuite and RIOO
One of the significant benefits of integrating NetSuite with RIOO is the streamlined management of property billing, vendor management, and procurement cycles.
By combining the financial capabilities of NetSuite with the property management tools of RIOO, property managers can optimize the entire property management process.
RIOO is a property management platform designed to simplify managing residential and commercial properties. It brings together essential functions like lease management, maintenance tracking, and accounting into a single, easy-to-use platform.
- Centralized Management:
By combining NetSuite's financial management features with RIOO’s property-specific capabilities, property managers can centralize their entire property management process, making it easier to manage vendor contracts, process payments, and track expenses in real-time.
- Real-Time Financial Data Integration:
RIOO’s integration with NetSuite ensures that financial data from invoices, payments, and vendor records is immediately synced, providing a unified view of the property's financial status.
How RIOO Enhances Property Billing with NetSuite
- Real-Time Financial Insights: RIOO provides real-time tracking of financial data, helping property managers stay on top of payments and invoices and enabling prompt action when discrepancies arise.
- Seamless Integration with Property Management: RIOO integrates property management functions like leasing, maintenance, and financial tracking, offering a unified view to help property managers streamline operations across various departments.
- Automated Rent Collection and Payment Management: RIOO automates the rent collection and payment processes, reducing administrative tasks and ensuring timely payments.
- Streamlined Payment Processing: Property managers benefit from simplified payment processes, with automated reminders and tracking to ensure smooth financial management.
- Efficient Lease and Financial Management: RIOO provides automated tools to help property managers stay organized with lease tracking, rent payments, and financial reporting, ensuring accuracy and compliance.
Conclusion
NetSuite property billing offers a powerful solution to streamline the invoicing process, enhance financial management, and improve operational efficiency for property managers.
With its automated billing capabilities, flexible billing schedules, and seamless integration with other financial systems, NetSuite provides property managers with the tools they need to simplify complex billing scenarios.
Integrating these capabilities with RIOO further optimizes the process, reducing manual effort and improving cash flow management.
Take your property billing to the next level. Combine NetSuite’s automated invoicing with RIOO’s comprehensive property management features, and managing leases, maintenance, and payments has never been easier.
Book your personalized RIOO demo now →
Also Read: The Hidden Costs of Skipping the Details in Property Setup
FAQs
- How does NetSuite Property Billing help reduce errors?
NetSuite automates invoicing, reducing manual data entry and ensuring compliance with accounting regulations, which lowers the risk of human error in property billing. - Can NetSuite Property Billing handle both commercial and residential properties?
Yes, NetSuite Property Billing can manage both commercial and residential properties by offering customizable billing schedules, making it adaptable for various property types. - What types of payments does NetSuite Property Billing support?
NetSuite Property Billing supports various payment methods, including automated recurring payments for rent and utilities. However, it doesn’t specify a wide range of manual payment options. - How does the integration with RIOO enhance property billing?
The integration of NetSuite with RIOO provides real-time financial data syncing, centralized property management, automated rent collection, and streamlined vendor management, improving operational efficiency. - What is Advanced Billing, and how does it work?
Advanced Billing allows for flexible billing schedules, such as monthly, quarterly, or annual payments, for leases or service contracts. It generates multiple invoices based on predefined intervals, ensuring accurate billing over time.
