Time-Phased Bills: Types & Purpose

Time-Phased Bills: Types & Purpose
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  • 0:01 A Time-Phased Bill
  • 0:22 Types
  • 1:37 Purpose
  • 1:59 Example
  • 2:28 Lesson Summary
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Lesson Transcript
Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

After watching this video lesson, you will understand what time-phased bills are, what types there are, and what purposes they serve. Learn when and why a business will use a time-phased bill rather than a regular invoice.

A Time-Phased Bill

A time-phased bill is an invoice that is paid in portions over time. It can also refer to an invoice where products are delivered in batches over a period of time. You will find these bills used for more expensive items, such as electronic equipment, and for items that you need on a recurring basis, such as body lotions and creams.


There are two types of time-phased bills.

The first one is the one where your payments are time-phased. With this type, your payments are paid in intervals over a period of time. For example, when you purchase a somewhat more expensive item, you might receive a bill that asks you to pay in installments. For a $200 digital camera, you might be asked to pay $50 each month for four months. At the end of four months, you will have paid $200 and have finished paying for your digital camera. With this type of time-phased bill, you sometimes also have to pay interest on your installment payments. Why the interest rate? Because the company is essentially granting you a form of credit so you don't have to pay the full price up front.

The second type is the one where your products are time-phased. With this type, your products are shipped to you at regular intervals over a period of time. For example, if you order body soap with a time-phased bill that says you want to receive four bars every month for the next three months, you will receive four bars of soap every month for the next three months. With this type of time-phased bill, you can either pay up front for the specified time period or you can be charged every month when your products are shipped out.

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