Why does Consolidated Invoicing exist?
Many a time, there will be multiple subscriptions from a single customer. This could be subscriptions to multiple products of yours or subscriptions for different teams from a single customer. And raising a separate invoice for every single purchase is redundant and often spammy. Consolidated invoicing combines all these individual invoices into a single invoice that you can send across to your customer.
To avoid time spent on repetition, unnecessary manual labor and money lost on customer confusion, businesses use consolidated invoicing as a means to bill smartly and hassle-free.
How does consolidated invoicing work?
A typical invoicing system creates an invoice for every purchase made by the customer regardless of the timeframe. Every subscription is treated as a separate purchase. But a consolidated invoice is generated only once in a given timeframe by aggregating all purchases made by the client in that particular timeframe.
For example, in a span of five days, Alfred signs up for three different monthly subscriptions from a product or service. At the end of the month, the vendor/business owner will generate a single invoice aggregating all three subscriptions prorated accordingly, making it easier for Alfred keep track of his subscriptions, expenses and more importantly, pay for all just once. (thereby reducing the probability of churn for his multiple subscriptions)