Module Area: Billing & Invoicing Procedures
Audience: Visp.net End-Users / Administrators
Applies To: Subscriber Profile → Billing Options → Tax, Tax Exempt, and Cycle
Purpose
This guide explains how to configure and manage the Tax, Tax Exempt, and Cycle features within the Billing Options section of a subscriber profile in Visp.net. These controls govern how taxes are applied to invoices, when tax exemptions take effect, and how frequently a subscriber is billed. Correct configuration ensures accurate invoicing, compliance with tax regulations, and alignment with customer billing preferences.
Prerequisites
| Requirement | Details |
|---|---|
| Visp.net Login | Logged in with Admin-level permissions to view and modify billing options |
| Subscriber Access | The target subscriber’s profile is open with the Billing Options section visible |
| Global Tax Profiles Exist | Tax rates used in the Tax dropdown must be pre-configured by an administrator under App Launcher → Billing → Invoicing → Tax |
| Package Tax Settings Reviewed | You understand whether the subscriber’s active packages use Use Subscriber’s Tax Settings, Custom Package Settings, or another tax method — this affects how subscriber-level tax changes cascade |
Section 1: Field Definitions
The three fields covered in this guide appear within the Billing Options section of the subscriber profile.
| Field | UI Element | Purpose |
|---|---|---|
| Tax | Dropdown menu | Selects the specific tax rate or tax profile applied to the subscriber’s invoices. Example values include Internet Tax, Sales Tax, or custom profiles defined globally. |
| Tax Exempt | Checkbox | When checked, no taxes are calculated or applied to the subscriber’s invoices — regardless of the selection in the Tax dropdown or package-level tax settings. |
| Cycle | Dropdown menu | Determines the billing frequency for all recurring charges on the subscriber’s account. Available options: Monthly, Quarterly, Semi-Annually, and Annually. |
Section 2: Understanding the Tax Dropdown
2.1 What the Tax Field Controls
The Tax dropdown assigns a specific tax profile to the subscriber. The selected profile determines which tax rate is applied when the system calculates invoice totals for this customer.
Example: If "Internet Tax" is selected, the tax rate configured globally for internet services is applied to the subscriber’s invoices.
2.2 Where Tax Options Originate
The tax options available in the dropdown are not created at the subscriber level. They are pre-configured by an administrator in the system’s global settings:
Path: App Launcher (nine-dot menu) → Billing → Invoicing → Tax tab
Tax profiles defined there flow into the subscriber-level Tax dropdown, ensuring consistent tax application across the customer base while permitting per-subscriber customization when needed.
2.3 Subscriber Tax vs. Package Tax
Tax can be configured at two levels in Visp.net: the package level and the subscriber level. The interaction between them depends on the package’s tax method:
| Package Tax Setting | Effect on Subscriber |
|---|---|
| Use Subscriber’s Tax Settings | The package inherits whatever tax profile is selected in the subscriber’s Tax dropdown. Any change to the dropdown immediately affects this package’s tax calculation. |
| Custom Package Settings | The package applies its own fixed tax rate, independent of the subscriber’s Tax dropdown. The subscriber-level setting may not override it. |
| None | No tax is applied by this package, regardless of the subscriber’s Tax setting. |
| Avalara Tax | Tax is calculated by the Avalara engine. Requires Avalara integration configured under General → Extensions. |
💡 Pro-Tip: Before changing a subscriber’s Tax dropdown, check each active package’s tax method. If a package uses Custom Package Settings, changing the subscriber-level tax may have no effect on that package’s invoices.
Section 3: Understanding Tax Exempt
3.1 What the Tax Exempt Checkbox Does
The Tax Exempt checkbox designates the subscriber as exempt from tax on all services. When checked:
- No taxes are calculated or applied to the subscriber’s invoices.
- This exemption overrides both the subscriber-level Tax dropdown selection and any package-level tax configuration.
- The exemption takes effect on future invoices only. Existing invoices are not retroactively modified.
3.2 Common Use Cases
| Use Case | Example |
|---|---|
| Non-Profit Organizations | A registered 501(c)(3) charity that holds a state sales tax exemption certificate |
| Government Entities | Municipal, state, or federal agencies with statutory tax exemption |
| Reseller / Wholesale Accounts | A business purchasing services for resale (where tax exemption is legally permitted) |
3.3 Tax Exempt vs. Tax Dropdown
| Scenario | Tax Dropdown | Tax Exempt Checkbox | Result |
|---|---|---|---|
| Normal taxable subscriber | Internet Tax selected | Unchecked | Internet Tax applied to invoices |
| Exempt subscriber | Any value selected | Checked | No tax applied — exemption overrides all |
| No tax profile assigned | (none) selected | Unchecked | No tax applied, but for a different reason (no rate selected) |
⚠️ Warning: Do not use a blank Tax dropdown as a substitute for Tax Exempt. Leaving the Tax field blank means no tax profile is assigned — but if a package uses Custom Package Settings with a built-in tax rate, tax may still be applied. The Tax Exempt checkbox is the only guaranteed method to suppress all tax for a subscriber.
Section 4: Tax Change Options — Controlling How Changes Cascade
4.1 The Tax Change Prompt
When you change the Tax dropdown or toggle the Tax Exempt checkbox, Visp.net may display a Tax Change Option pop-up. This prompt asks how you want the change to affect the subscriber’s existing and future invoice items.
4.2 Available Options
| Option | Behavior | When to Use |
|---|---|---|
| Automatically after Save | The tax change is applied immediately to all current and future recurring items on the account. | When you need the tax change to take full effect right away across the entire account. |
| Manually after Save | The tax change is queued but requires a manual step to apply it to existing recurring items. | When you want to review the impact before committing, or when the change should be staged. |
| Only to subsequently added invoice items | Existing recurring items retain their current tax treatment. Only new charges added after the change will reflect the new tax setting. | When you want to preserve historical tax treatment on existing services while applying the new rule going forward. |
4.3 Recommendation by Scenario
| Scenario | Recommended Option |
|---|---|
| Correcting a tax misconfiguration discovered mid-cycle | Automatically after Save — ensures all items are corrected immediately |
| A customer newly provides a tax exemption certificate | Automatically after Save — exemption should take effect now |
| Changing tax rate for new services only (existing services grandfathered) | Only to subsequently added invoice items |
| Uncertain about downstream impact | Manually after Save — review, then apply |
Section 5: Understanding the Cycle Dropdown
5.1 What the Cycle Field Controls
The Cycle dropdown determines how frequently the subscriber is invoiced for their recurring services. It overrides any package-level billing frequency and applies to all active recurring packages on the account.
5.2 Available Cycle Options
| Cycle | Invoice Frequency | Invoices Per Year |
|---|---|---|
| Monthly | Every 1 month | 12 |
| Quarterly | Every 3 months | 4 |
| Semi-Annually | Every 6 months | 2 |
| Annually | Every 12 months | 1 |
5.3 Business Reasons to Change the Cycle
| Reason | Benefit |
|---|---|
| Customer preference | Some customers prefer annual billing to reduce payment frequency |
| Discount incentives | ISPs often offer a discount for longer cycles (e.g., "10% off when you pay annually") |
| Administrative efficiency | Fewer invoicing events per year reduce processing overhead |
| Service agreement terms | Certain business or contract accounts may require quarterly or annual billing |
| Cash flow management | Annual prepayment improves cash flow predictability for the ISP |
Section 6: Impact of Changing the Billing Cycle
6.1 Immediate Effects
When you change a subscriber’s Cycle:
- The system recalculates the billing schedule for all recurring services on the account to align with the new frequency.
- If the change occurs mid-cycle, the system generates a prorated charge or credit on the next invoice to bridge the gap between the old and new cycle boundaries.
- The change takes effect from the next billing period onward.
6.2 Scenario: Monthly → Annual Mid-Cycle
A subscriber is on a Monthly cycle with an Invoice Day of the 1st. On June 18th, you change the cycle to Annually.
| Event | Date / Period | Effect |
|---|---|---|
| Current month already billed | June 1st invoice | Covers June 1–30 (monthly) |
| Change made | June 18th | Cycle changed to Annually |
| Remaining period | June 18–30 | Already paid for under the monthly invoice |
| Next invoice | July 1st (or adjusted date) | May include a prorated credit for June 18–30, plus the full annual charge for July 1 – June 30 of the following year |
⚠️ Warning: Switching a customer from Monthly to Annually mid-cycle can produce a large next invoice that includes both the annual prepayment and any proration adjustments. Always communicate the expected amount to the customer before saving the change.
6.3 Future Invoicing After the Change
Once the cycle change is in effect, all subsequent invoices are generated according to the new frequency:
| New Cycle | Next Invoice Timing |
|---|---|
| Quarterly | Every 3 months on the subscriber’s Invoice Day |
| Semi-Annually | Every 6 months on the subscriber’s Invoice Day |
| Annually | Every 12 months on the subscriber’s Invoice Day |
Section 7: How Billing Days and Cycle Interact
The Billing Days and the Cycle work together to define the subscriber’s invoicing rhythm:
| Setting | Role | Example |
|---|---|---|
| Invoice Day | The specific day of the month invoices are generated | 1st |
| Cycle | The frequency of invoice generation | Quarterly |
| Invoice Due Day | The day payment is due within the cycle | 15th |
| Term Start Day | The official start of each billing period | 1st |
Combined Example:
| Cycle | Invoice Day | Result |
|---|---|---|
| Monthly | 1st | Invoice generated on the 1st of every month (Jan 1, Feb 1, Mar 1…) |
| Quarterly | 1st | Invoice generated on the 1st every three months (Jan 1, Apr 1, Jul 1, Oct 1) |
| Annually | 1st | Invoice generated on the 1st once per year (Jan 1) |
Altering either the Billing Days or the Cycle affects the other. When you change the Cycle, the Invoice Day remains the anchor — only the spacing between invoices changes.
Section 8: Step-by-Step — Configuring Tax and Cycle Settings
- From the left sidebar navigation, select Subscribers.
- Locate the subscriber and click their Name or Subscriber ID to open the profile.
- Scroll to the Billing Options section.
- To configure Tax:
- Locate the Tax dropdown.
- Select the appropriate tax profile from the list (e.g., Internet Tax, Sales Tax).
- If the subscriber is tax-exempt, check the Tax Exempt checkbox.
- If prompted with the Tax Change Option pop-up, select the desired cascade behavior (Automatically after Save, Manually after Save, or Only to subsequently added invoice items).
- To configure the Cycle:
- Locate the Cycle dropdown.
- Select the desired billing frequency (Monthly, Quarterly, Semi-Annually, Annually).
- Review the subscriber’s active packages under Packages & Invoices to anticipate proration impacts.
- Click Save to commit all changes.
- After saving, verify the changes by:
- Checking the updated field values in Billing Options.
- Reviewing the Transactions section to confirm the next invoice reflects the expected tax and cycle configuration.
Section 9: Summary Reference Table
| Change Made | Immediate Effect | Downstream Effect |
|---|---|---|
| Tax dropdown changed | New tax profile assigned; Tax Change Option prompt may appear | Future invoice tax lines reflect the new rate; existing items may or may not update depending on cascade choice |
| Tax Exempt checked | All tax calculation suppressed for this subscriber | Future invoices show $0.00 in tax, regardless of package-level settings |
| Tax Exempt unchecked | Tax calculation restored based on Tax dropdown and package settings | Future invoices include tax lines |
| Cycle changed (e.g., Monthly → Annually) | Billing frequency recalibrated for all recurring packages | Proration on next invoice; all future invoices follow new frequency |
Conclusion
The Tax, Tax Exempt, and Cycle fields in the Billing Options section provide subscriber-level control over tax application and billing frequency. The Tax dropdown assigns a tax profile sourced from global settings; the Tax Exempt checkbox provides an override that suppresses all tax for qualifying subscribers; and the Cycle dropdown determines how often invoices are generated. When changing any of these settings, always consider the cascade effect on existing recurring charges — through the Tax Change Option pop-up for tax changes and through proration for cycle changes — and communicate material impacts to the customer before saving.
Pro-Tips & Warnings (Consolidated)
- Tax Exempt is the only guaranteed way to suppress all tax. A blank Tax dropdown does not block package-level custom tax rates.
- Global tax profiles are created under App Launcher → Billing → Invoicing → Tax. If a needed tax rate is missing from the dropdown, it must be added there first.
- Tax Change Option choices are binding. Choose Only to subsequently added invoice items if you need to preserve historical tax treatment on existing recurring charges.
- Cycle changes trigger proration. Always audit the subscriber’s Packages & Invoices section before changing the cycle to anticipate the next invoice amount.
- Annual prepayment can produce sticker shock. Communicate the expected total to the customer before switching from Monthly to Annually mid-cycle.
- Billing Days anchor the Cycle. Changing the cycle does not change the Invoice Day — it only changes the spacing between invoice dates.
- Verify after saving. Always check the Transactions section to confirm the next invoice reflects the intended tax and cycle configuration.