Recurring Billing

What is Account Hierarchy?

Account hierarchy is a way of structuring a complex organisation into a simple parent-child relationship, generally used to break down locations, departments, or any other function of the company.

Account Hierarchy

When and where do companies implement Account Hierarchy?

From large conglomerates to SMBs, teams are dispersed across locations, job functions and have become a norm in today’s globalized economy. But there are overlaps in the tools the members from different teams or even locations use within a single organization.

For example - let's assume that you own a project management tool which is largely an open solution that can be used by many teams within a single org, like an engineering team and a design team from the same org may find it ideal but for largely different reasons. Though both these teams have their own subscription for the tool, the buck stops at the same finance team who’ll authorize the transaction for both these subscriptions.

As the business owner of the project management company, it’ll make more sense for you to raise a single invoice to the billing contact regardless of multiple subscriptions. This will reduce potential confusion in payments, invoicing, billing cycles.

What are the benefits of Account Hierarchy in your subscription billing system?

Having a unified bird’s eye view of an account will not only help merge several transactions and match them to a single buyer but also helps you spot the golden gooses among your customers who might require a dedicated customer success team to keep them satisfied. By configuring account hierarchy for your customers,

  • Save time from creating multiple entries.

  • Stop revenue leakages by consolidating your invoice avoiding delays, confusion, and churn.

  • Bring structure to your invoices and billing cycles with consolidated invoicing.

  • Calculate the Lifetime Value (LTV) of the customer accurately.

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Additional Reads

More reads on Account Hierarchy, and how Chargebee maps complex-looking Org charts into simple Parent-Child relationships:

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