> ## Documentation Index
> Fetch the complete documentation index at: https://docs.techfootintl.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Process Bills
Process Bills is the core calculation stage of the billing lifecycle.
At this stage, the system takes all collected billing inputs—such as metered usage, unmetered usage, manual components, and adjustments—and applies business rules to generate final bill amounts for each customer.
This step transforms raw billing data into structured, calculated billing records ready for posting.
In simple terms:
> Process Bills is where the system calculates “how much each customer owes” based on all available billing data.
## Why Bill Processing Is Important
Billing data collected in earlier steps is not yet financially complete.
Before processing, the system only has:
* Usage values (metered and unmetered)
* Manual charges and credits
* Estimated readings (if any)
* Arrears and balances
* Service configurations
Bill processing converts this raw data into:
* Final charges
* Taxes
* Discounts
* Total payable amounts
Without this step, no invoice can be generated.
## What Happens During Bill Processing
During bill processing, the system evaluates each customer’s billing data and applies configured pricing logic.
This includes:
* Service pricing rules
* Package or plan configuration
* Usage-based pricing
* Tiered billing logic
* Discounts and promotions
* Tax calculations
* Adjustments and surcharges
## Core Activities
### 1. Apply Billing Rules
Billing rules define how services are priced.
The system evaluates rules such as:
* Flat rate pricing
* Per-unit pricing
* Tiered pricing (slabs)
* Minimum/maximum charges
* Package-based pricing
### Example
| Usage | Rate | Charge |
| :-------- | :----- | :----- |
| 500 Units | \$0.50 | \$250 |
### 2. Calculate Service Charges
Each service is evaluated individually based on usage or fixed pricing.
### Example
| Service | Charge Type | Amount |
| :--------------- | :---------- | :----- |
| Electricity | Usage-based | \$250 |
| Water | Usage-based | \$80 |
| Waste Collection | Fixed | \$10 |
### 3. Calculate Taxes
Applicable taxes are applied based on jurisdiction and service configuration.
### Common taxes:
* VAT
* Sales tax
* Service tax
* Government levies
### Example
```text theme={null}
Subtotal = $340
Tax (10%) = $34
Total = $374
```
### 4. Apply Discounts
Discounts reduce the total bill amount based on rules or promotions.
### Examples:
* Loyalty discount
* Early payment discount
* Promotional discounts
* Customer-specific discounts
### Example
| Subtotal | Discount | Final |
| :------- | :------- | :---- |
| \$300 | -\$20 | \$280 |
### 5. Calculate Totals
After applying all charges, taxes, and discounts, the system calculates final payable amounts.
### Final Calculation Structure
```text theme={null}
Total = (Service Charges + Manual Components + Adjustments + Taxes) - Discounts
```
## Input Data Used in Processing
Bill processing uses multiple data sources:
### 1. Metered Usage
* Electricity
* Water
* Gas
* Utility consumption
### 2. Unmetered Usage
* Fixed services
* Subscription plans
* Virtual consumption
### 3. Manual Components
* Penalties
* Credits
* Adjustments
* One-time fees
### 4. Arrears
* Previous unpaid balances
* Partial payments
* Outstanding dues
### 5. Service Configuration
* Pricing rules
* Package definitions
* Meter parameters
* Tax rules
## Example Billing Scenario
### Customer: John Smith
#### Usage Data
| Service | Usage | Rate | Charge |
| :---------- | :-------- | :----- | :----- |
| Electricity | 600 Units | \$0.50 | \$300 |
| Water | 200 Units | \$0.40 | \$80 |
#### Manual Components
| Type | Amount |
| :------- | :----- |
| Late Fee | \$10 |
#### Subtotal Calculation
```text theme={null}
300 + 80 + 10 = 390
```
#### Taxes
| Rate | Amount |
| :------ | :----- |
| 10% VAT | \$39 |
#### Final Bill
```text theme={null}
390 + 39 = 429
```
The customer’s final bill is **\$429**.
### How to Process Bills
1-Go to **BillSpree** **→Bill Runs →Term**
2-Select **Pricing template** of Term:
# Unmetered Services
3-Click on **Batch Action** and Select **Process Bills.**
# Summary
Process Bills is the core billing engine stage where usage, rules, taxes, discounts, and adjustments are applied to calculate final customer bills ready for posting.