> ## 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.

# How it Works

> Billspree runs four layers in sequence — pricing, subscription, billing, and AR. Here's how they connect.

Billspree runs the full billing cycle across four layers:

```
Pricing  →  Subscription  →  Billing  →  AR Management
```

Each layer feeds the next. A customer cannot be billed without a subscription. A subscription cannot be priced without a pricing template. AR cannot track what was never invoiced.

## Layer 1 — Pricing

A [Pricing Template](/billing/package) defines the structure for one product or service line — the rate components, charge components, and usage inputs that can appear on a bill. It is the canvas.

On top of the template, you build [Pricing Modules](/billing/pricing-module) — rate cards that set the actual prices, charges sets that define the rules, and plans that compose them into sellable offers. One template can support many plans without rebuilding the product structure.

## Layer 2 — Subscription

A [Subscription](/billing/subscription) enrolls a customer onto a specific plan. It captures the customer's version of that plan — their contract terms, subscription inputs (SLA tier, seat count, region), and the usage that accrues each billing period.

Without a subscription, you have pricing but no one to bill.

## Layer 3 — Billing

A [Bill Run](/billing/term) processes all active subscriptions for a period. It ingests meter readings and usage, applies the plan's pricing logic, and produces draft invoices for review.

Drafts can be adjusted — meter corrections, manual line items, credits — before being posted and distributed to customers. Nothing is locked until you post.

## Layer 4 — AR Management

Once an invoice is posted, it enters AR. Payments are matched to open invoices, credits and adjustments post as formal entries to the customer's subledger, and aging schedules track what remains outstanding.

Every transaction — invoice, credit note, payment, late fee — is recorded on the customer AR subledger. The balance is the sum of every entry, not a number someone edited.

***

For the full detail on each layer, use the navigation on the left.