Management of monthly payments

[svanteschubert]

Background

Management of monthly payments with a final invoice in B2C transactions

French Use Case n°32: Monthly payments

This case study illustrates how to transmit payment data for monthly instalments before an invoice is issued.

In this case, the monthly instalments are declared by means of a transaction e-reporting (corresponding to a supply of goods or services subject to VAT) supplemented by a payment e-reporting. The adjustment invoice will be sent :

• As part of a domestic B2B transaction via an e-invoicing flow (flow 2)
• As part of an international B2B or B2C transaction via an e-reporting flow (flow 8, flow 9 or flow 10)

Example:

An energy supplier offers its customers the option of monthly payments based on estimated annual consumption. At the end of the year, the energy supplier issues an adjustment bill, the amount of which is calculated on the basis of each customer's actual consumption.

Case 1: Adjustment invoice shows outstanding balance and no option to pay VAT on debits

Case 1-a: Adjustment invoice shows an outstanding balance (no option on debits by supplier):

Figure 34: Monthly payments and additional payments for B2C (option 1a)

The specificities of billing/transaction and payment data transmission are :

• Transmission of an e-report of cumulative data over the period of transactions (flow 10.3) and payments (flow 10.4) relating to monthly payments received, where applicable.
• Issuance of an adjustment invoice with the additional amounts to be paid to the customer (outside the circuit), the total amount exclusive of tax and VAT, and a reminder of the monthly instalments already paid.
• At the same time, transmission of a net e-reporting equal to the amount of the adjustment invoice minus the reversal of down payments.
• Transmission of payment data (flow 10.4) including the amount collected corresponding to the net amount of the adjustment invoice.

Case 1-b: Adjustment invoice shows an outstanding balance (VAT option on debits by supplier)

Figure 35: Monthly B2C payments and additional payments (option 1b)

The specificities of billing/transaction and payment data transmission are :

• Transmission of an e-report of cumulative data over the transaction period (flow 10.3) relating to monthly payments received, where applicable.
• Issuance of an adjustment invoice with the additional amounts to be paid to the customer (outside the circuit), the total amount exclusive of tax and VAT, and a reminder of the monthly instalments already paid.
• At the same time, a net e-reporting is sent, equal to the amount of the adjustment invoice minus the amount of the down-payment reversal.

If the supplier has opted to pay VAT on debits, he does not have to transmit payment data, unlike in case 1-a.

Case 2-a: Adjustment invoice shows overpayment (no option on debits by supplier):

Figure 36: Monthly payments and final overpayment for a B2C transaction (option 2.a)

The specificities of billing/transaction and payment data transmission are :

• E-reporting of cumulative transaction data (flow 10.3) and payment data (flow 10.4) relating to monthly payments received.
• Issuance of a regularization invoice to the customer (outside the circuit) showing actual consumption and the total amount before tax and VAT.
• At the same time, transmission of a net negative e-reporting equal to the amount of the adjustment invoice less the reversal of down payments.
• Transmission of payment data (flow 10.4) including the disbursed amount corresponding to the overpayment appearing on the adjustment invoice.

Case 2-b: Adjustment invoice shows overpayment (option on debits by supplier):

Figure 37: Monthly payments and final overpayment for a B2C transaction (option 2.b)

If the supplier has opted to pay VAT on debits: the adjustment invoice showing the amount overpaid in negative will be taken into account. No payment data will be transmitted despite the overpayment.

The specificities of billing/transaction data transmission are :

• e-reporting of cumulative transaction data (flow 10.3) relating to monthly payments received
• Issue of an adjustment invoice to the customer (out of circuit)

NOTE: The text/pictures of this use case no. 32 were taken from the French government site! The text was extracted from V2.3 - deepl English DOCX and any pictures were taken from V2.2 - original English PDF)

[larsroelkerdenker]

Background

Management of monthly payments with a final invoice in B2C transactions

why limited to B2C? this also occurs in B2B and B2G