Overview
Roll-up billing consolidates subscription charges from multiple related customers into a single invoice billed to a parent customer. Instead of issuing separate invoices to each subsidiary, regional office, or department, the system generates one unified invoice addressed to the parent organization. This feature is designed for enterprises with multi-entity structures where a central finance team manages payment for the entire organization. Roll-up billing requires customers to be organized into a customer family (parent-child relationship).Who This Is For
| Role | Involvement |
|---|---|
| Revenue Operations | Enables roll-up billing on child customer subscriptions |
| Finance | Reviews and processes consolidated invoices |
| Sales Operations | Structures deals where a parent entity pays for subsidiaries |
| Support | Assists with invoice questions involving multiple customers |
How Roll-Up Billing Works
Core Concepts
- Serviced customer: The customer who receives the product or service (the child customer who owns the subscription).
- Billed customer: The customer who receives the invoice and is responsible for payment (the parent customer, when roll-up is enabled).
- Roll-up invoice: A consolidated invoice that contains line items from subscriptions across multiple customers in the same family.
High-Level Flow
- A child customer has a subscription with roll-up billing enabled.
- When the billing period closes, instead of generating an invoice for the child, the system includes those charges in the parent customer’s invoice.
- The parent’s invoice groups line items by customer, making it clear which charges belong to which subsidiary.
- The parent customer pays the consolidated invoice.
Configuration & Usage
Prerequisites
- A customer family must exist (parent-child relationship configured).
- The child customer must have an active subscription.
Enabling Roll-Up Billing on a Subscription
Roll-up billing is configured per subscription. It’s enabled by default for both child subscriptions and parent subscriptions. Via the Dashboard:- Navigate to the customer’s subscription (or create a new one).
- In the Invoicing Settings section, locate the Roll-up Billing toggle.
- Enable the toggle. The description reads: “Invoice the parent customer for this subscription.”
- Save or activate the subscription.
rollupBilling to true when updating a subscription.
System Behavior
What Always Happens
- When roll-up billing is enabled on a child subscription, the invoice is always addressed to the parent customer.
- Line items on a roll-up invoice are always grouped by customer. Each customer’s charges appear under a labeled section with the customer’s name.
- Within each customer group, line items are further organized by bundle (if applicable) and then by product.
- Changing a child’s parent customer automatically triggers recalculation of billing schedules for the child, the old parent, and the new parent.
What Is Configurable
- Roll-up billing is enabled or disabled per subscription. Not all of a child customer’s subscriptions need to participate in roll-up billing.
- A parent customer can also have its own direct subscriptions. These appear in the same invoice alongside rolled-up charges from children.
What Never Happens
- Existing issued invoices are never modified when roll-up billing is enabled or disabled. Changes apply to future billing periods only.
- Roll-up billing does not perform cross-currency conversion. All subscriptions consolidated into a single invoice should use the same currency.
Edge Cases & Special Scenarios
Enabling Roll-Up on an Existing Subscription
When roll-up billing is enabled on an active subscription mid-cycle, the system recalculates the billing schedule. Existing mutable (upcoming) invoices for the child may be voided, and charges are included in the parent’s next invoice instead.Disabling Roll-Up on a Subscription
When roll-up billing is disabled, future invoices for that subscription revert to being billed directly to the child customer. The parent’s billing schedule is also updated to remove the child’s charges.Removing a Parent from a Child with Roll-Up Active
If the parent-child relationship is severed (parent cleared), the system automatically recalculates billing schedules. Roll-up billing effectively becomes inactive because there is no longer a parent to bill. Future invoices are generated for the child customer directly.Multiple Children with Different Billing Cadences
Each child subscription maintains its own billing cadence. Roll-up invoices are generated based on the parent’s billing schedule. Charges from children are consolidated into the parent’s invoice for the matching period.Subscription Credits in Roll-Up Billing
Credits are consumed on a per-subscription basis within roll-up invoices. When a subscription has available credits:- Credits are applied to that subscription’s line items within the consolidated invoice.
- Credit line items are grouped under the same customer section as the charges they offset.
- If an invoice is canceled, any credit consumption is automatically rolled back.
- If an invoice is issued then voided, any credit consumption is not rolled back.
Impact on Other Parts of Alguna
| Area | Impact |
|---|---|
| Invoices | Roll-up invoices contain line items from multiple customers, grouped by customer name. The invoice is addressed to and billed to the parent. |
| Payments | Payment is collected from the parent customer. The parent’s payment method and payment terms apply. |
| Credit notes | Credit notes for roll-up invoices reference the parent customer (the billed customer). |
| Revenue reporting | Revenue remains attributed to the serviced customer for analytics and revenue recognition, regardless of who is billed. |
Examples
Enterprise with Three Subsidiaries
Setup:| Customer | Role | Parent |
|---|---|---|
| Global Industries | Parent | — |
| GI North America | Child | Global Industries |
| GI Europe | Child | Global Industries |
| GI Asia Pacific | Child | Global Industries |
| Customer | Subscription | Monthly Amount | Roll-Up Enabled |
|---|---|---|---|
| Global Industries | Platform License | $5,000 | N/A (parent’s own subscription) |
| GI North America | Usage Plan | $12,000 | Yes |
| GI Europe | Usage Plan | $8,500 | Yes |
| GI Asia Pacific | Usage Plan | $6,200 | Yes |
Partial Roll-Up
Not all customers in a family need to use roll-up billing. In this example, one subsidiary’s charges are consolidated to the parent while another is billed independently:| Customer | Subscription | Roll-Up Enabled | Billed To |
|---|---|---|---|
| Global Industries (parent) | Usage Plan | Yes | Global Industries (always) |
| GI North America (child) | Usage Plan | Yes | Global Industries (rolled-up) |
| GI Europe (child) | Usage Plan | No | GI Europe |