Introduction

This guide provides a comprehensive overview of Two's Billing Account feature, explaining how to create, configure, and utilize billing accounts to streamline B2B transactions. Billing accounts allow you to group multiple orders for a single buyer, simplifying invoicing and payment management.

Note: To request access to the billing account service, please contact our team at support@two.inc.

We'll cover three main pillars:

  1. Creating and Configuring a Billing Account: Setting up the foundation.
  2. Associating Orders with a Billing Account: Linking transactions for grouped invoicing.
  3. Understanding Billing Statements and Payment Cycles: How buyers are invoiced and when payments are due.

Pillar 1: Creating and Configuring a Billing Account

A billing account serves as a central record for a buyer's transactions, enabling grouped payment statements.

Step 1: Create the Billing Account

To begin, you'll create a billing account for a specific company using the POST /billing/v1/account endpoint. This request requires the company's legal name and registration number.Upon successful creation, the API response will include a global id, which is the billing_account_id. This ID is crucial for linking orders to this account.

Step 2: Configure Key Billing Account Parameters

When creating a billing account, you'll define its operational parameters. These settings are vital for determining how and when your buyers receive their grouped statements and how their payment terms are structured.

schedule

The schedule determines the frequency with which Two sends grouped payment statements to the recipients associated with the billing account (e.g., DAILY, MONTHLY, WEEKLY).
  • Consideration: Align the schedule with the payment terms (duration_days). For instance, a MONTHLY schedule is suitable for longer payment terms, while a DAILY or WEEKLY schedule might be better for shorter terms. Avoid overly frequent statements for long payment terms or delayed statements for short terms.

duration_days

This setting specifies the payment terms (e.g., 14, 30, 60 days) for all orders assigned to this billing account. The total repayment period is calculated based on the schedule and duration_days.
  • How it works: The payment term officially begins when the billing account recipients receive their grouped statement.
  • Example: For an "End of Month + 30 days" term, set the schedule to MONTHLY and duration_days to 30. Recipients will receive their statement at the end of the month, and the 30-day payment term starts from that statement date. If the schedule is DAILY and duration_days is 14, the buyer has 14 days to pay from when they receive their statement (which, in a daily setup, typically starts the next day after order fulfilment within the billing account context).

generation_delay_days

This parameter defines a window (in days) that allows you, the merchant, to process any final refunds or changes for orders on a billing account before the grouped statement is generated and sent.

  • Default: Billing accounts are created with a 4-day generation delay by default.
  • Customization: You can adjust this during setup if you need a shorter or longer window.
  • Important Note: Any new orders fulfilled and added to the billing account during this generation delay window will roll over to the next billing cycle's statement. They will not be included in the current, pending statement.

account_name

If a single company requires multiple billing accounts (e.g., for different departments, branches, or purchasing arrangements), assign a descriptive account_name to each. This helps in easily distinguishing between them.

Email Recipients

You will also specify the primary and (optionally) secondary email recipients who will receive the grouped payment statement emails from Two.

Pillar 2: Associating Orders with a Billing Account

Once a billing account is created and you have its billing_account_id, you can link new orders to it.When creating an order using the POST v1/order endpoint (our standard order creation API), include the billing_account_id in the request body.

By doing this, the order will automatically be attached to the specified billing account. It will then be included in that account's next scheduled grouped payment statement.

Pillar 3: Understanding Billing Statements and Payment Cycles

The core benefit of billing accounts is consolidated invoicing for your buyers.

  • Statement Generation: Based on the schedule you defined (e.g., MONTHLY), Two automatically generates a grouped statement that includes all orders linked to the billing account within that period.
  • Statement Delivery: This statement is emailed to the primary and secondary recipients configured for the billing account.
  • Payment Term Activation: As mentioned, the buyer's payment term (defined by duration_days) begins from the date they receive this grouped statement.

This system simplifies the accounts payable process for your buyers, as they receive a single statement for multiple purchases, and clarifies payment due dates.

Conclusion

Two's Billing Account feature offers a powerful way to manage B2B transactions by grouping orders and streamlining the invoicing process. By carefully configuring the schedule, duration_days, and generation_delay_days, and by consistently linking orders using the billing_account_id, you can provide a more convenient payment experience for your business customers and simplify your own reconciliation processes.