Invoice-on-behalf-of capability

Introduction

The option to choose organization issuing the invoice expands the invoice management capabilities. Distributor admins have the possibility to select if invoice will be issued by distributor on behalf of seller. This is a common scenario in case:

• Seller acts as an agent between distributor and end-customer.
• If there is increased credit risk of a seller, distributor may mitigate this risk by invoicing the end customer directly.

Note that once the Invoice On Behalf configuration is defined and seller creation is approved, you can no longer edit this setting.

In this article:

• What do you need to use this feature?
• Configuration
• Automatic migration of invoicing settings

What do you need to use this feature?

To configure the "Invoice On Behalf" feature as a distributor admin, ensure the following prerequisites are met:

• You have the Distributor Admin role.
• The feature is enabled for your instance. (This is an optional feature that can be activated for each distributor tenant individually.)

Configuration

To configure the "Invoice On Behalf" feature on the seller form, you must be logged into the Partner Management Platform as an admin.

If the feature is not visible, it may not be enabled for your account.

Steps required for configuration:

1. Log in to the partner management platform.
2. Go to the Seller Management section.
3. In the settings, go to Enable Invoicing.
4. Use the drop-down menu called Select who will handle invoicing for end customers to select your preferred option:
   • None (the default value)
   • Invoice Issued by Seller
   • Invoice Issued by Distributor
   • Invoice Issued by Distributor (Locked)
5.  Save the changes.

The drop-down menu allows you to configure how invoicing is handled for end customers. You can select from the following options:

1. None (Default Value)

This is the default setting for the invoice-on-behalf-of feature. Select this option if you do not want to explicitly assign ownership of invoicing for end customers.

2. Invoice Issued by Seller

This is an informational field in the platform's UI, visible when purchasing or editing a subscription. This setting will be applied per each subscription. 

3. Invoice Issued by Distributor

This is also an informational field in the platform's UI, visible during subscription purchase or editing. This setting will be applied per each subscription. 

4. Invoice Issued by Distributor (Locked)

This option indicates that the distributor assumes full ownership of invoicing within the platform.  If selected:

• This setting will be applied on organization level for all subscriptions.
• Users will not see this option during subscription purchase or editing, as it is locked and unavailable for modification.
• Subscription purchases and management will occur via the agent seller's platform.
• Invoices will be generated on the distributor’s platform and will not appear on the agent seller's platform.
• All Stripe payment controls under "Settings -> Currency and Payments -> Payments" are disabled for such resellers.

Additional Details:

• When calculating invoices for such customers:
  • Markups will be based on the price tier assigned to the agent seller.
  • Customer pricing configurations will be applied from the agent seller’s platform.
• Recommended Configuration for Simplicity:
  Assign the agent seller to a separate price tier with a markup configuration of Cost Price + 0%. Manage prices solely through the seller’s Customer Prices functionality to ensure greater transparency regarding the final price applied to the invoice.

Summary

The Invoice-on-behalf-of feature on the Partner Management Platform enhances your invoice management workflow by allowing administrators to assign a clear owner, designating who is responsible for generating invoices. Once configured, this setting becomes non-editable, ensuring consistency and clarity in invoice handling.