Inside Salesforce Revenue Cloud: The Billing Process — Unpacked

This article breakdowns how a billing configuration flows from setup to execution using Billing Policy, Billing Treatment, and Billing Treatment Items — all the way to Billing Schedule generation upon order activation.

Step 1: Billing Admin Defines Billing Components

1.1 Billing Policy

• A container for billing rules.
• Defines how to invoice the customer for a product.
• Can host multiple Billing Treatments.

1.2 Billing Treatment

• Specifies the billing logic (e.g., schedule, type, strategy).
• Multiple treatments can be created for different business models (e.g., Milestone, Monthly, Usage-based).

1.3 Billing Treatment Items

• Define the exact way the order amount is split and scheduled.
• Types of Treatment Items:
• Percentage: A percentage of the order value (e.g 30% upfront).
• Flat Amount: Fixed amount billing (e.g $500).
• Remainder: Captures the remaining amount after other percentages have been applied.

Step 2: Assign Billing Policy to Product

• Navigate to the Product record
• Set the BillingPolicyId field to the desired Billing Policy
• This links the product to a predefined billing configuration

Step 3: Sales User Creates an Order

• A Quote is converted to an Order
• The products on the quote become Order Line Items (OrderProduct)
• Each order item inherits the Billing Policy from the product

Step 4: Billing Treatment Assignment Logic

Based on the Billing Treatment Selection field on the Billing Policy, system applies the treatment through one of the following paths:

1. Default

• The system applies the default billing treatment defined in the Billing Policy

2. Manual

• Sales users can override and select a specific Billing Treatment on the OrderProduct.BillingTreatmentId field

If not selected manually, the fallback logic applies:

1. Policy default
2. Org-level default (if no policy default is defined)

3. Legal Entity

• System selects the Billing Treatment that matches the Legal Entity of the order

Fallback logic:

1. Treatment matching legal entity in policy
2. Policy default
3. Org-level default
4. If none found, billing calculation fails

Outcome for all 3 paths: → A valid Billing Treatment is assigned to the OrderProduct.

Step 5: Order Activation & Billing Schedule Generation

• Upon Order Activation, Salesforce triggers the Order-to-Billing Schedule process using a flow.
• The system reads the Billing Treatment Items assigned to the Order Item.
• Based on their configuration, it creates below records:
• Billing Schedule Group
• Billing Schedule

These output objects drive automated invoice generation and revenue recognition downstream.

End Result

• A fully automated, compliant, and flexible billing process.
• Custom billing logic per product or transaction, driven by a central configuration.
• Visibility and control for both billing admins and sales teams.

🔗 Learn more about Revenue Lifecycle Management on Salesforce