Copyright

Time-Phased Bills: Types & Purpose

Time-Phased Bills: Types & Purpose
Coming up next: Item Master File: Definition & Contents

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:01 A Time-Phased Bill
  • 0:22 Types
  • 1:37 Purpose
  • 1:59 Example
  • 2:28 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed
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.

Types

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.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support