Business glossary
Billing cycle
The repeating period between statements, invoices or scheduled charges.
Example
A maintenance contract covers September 1–30 and is billed on October 1. September is the service period; October 1 is the invoice date. If payment is due October 31, that is a separate due date.
How it differs from related terms
A billing cycle defines the repeat period, not necessarily the payment deadline. State the service dates, invoicing schedule and payment terms separately to make recurring charges understandable.
Frequently asked questions
What is an example of billing cycle?
A maintenance contract covers September 1–30 and is billed on October 1. September is the service period; October 1 is the invoice date. If payment is due October 31, that is a separate due date.
How should billing cycle be interpreted?
A billing cycle defines the repeat period, not necessarily the payment deadline. State the service dates, invoicing schedule and payment terms separately to make recurring charges understandable.