How does invoicing work in Tabs?

Last updated: January 30, 2025

Tabs automates the entire invoicing process, ensuring accuracy, flexibility, and real-time updates. From contract ingestion to payment collection, every invoice is generated, tracked, and managed seamlessly.

1. Generating Invoices from Contracts

As soon as a contract is ingested, Tabs automatically creates a full invoicing schedule based on the contract’s terms. This includes:

  • Fixed-term agreements (e.g., 12-month contracts billed monthly or annually)

  • Usage-based contracts (e.g., variable pricing tied to consumption data)

  • Milestone-based invoicing (e.g., payments triggered by project phases or deliverables)

Every invoice is mapped out in advance, so finance teams have full visibility into future billing.

2. Dynamic Invoice Adjustments

Tabs continuously updates invoices based on contract changes, including:

  • Amendments or renewals that impact billing terms

  • Adjustments due to usage fluctuations

  • Pricing changes, discounts, or additional line items

Invoices remain accurate and aligned with the latest contract data—without manual intervention.

3. Review, Approval, and Bulk Actions

Finance teams can manage invoices efficiently with:

  • Draft invoices – Review and adjust invoices before sending

  • Bulk approvals – Approve and send multiple invoices at once

  • Automated approvals – Set rules to auto-approve invoices based on predefined criteria

4. Delivery and Tracking

Tabs ensures invoices are sent and tracked with:

  • Slack notifications – Real-time invoice updates for internal teams

  • Kanban-style tracking – Visualize invoice status at a glance

5. Payment and Collections Management

Tabs integrates invoicing with payment tracking to keep revenue flowing smoothly:

  • Scheduled invoice creation – Automate invoice generation to match billing cycles

  • Smart calculations – Ensure accuracy in tax, proration, and discount applications

  • Dunning and follow-ups – Automate reminders for overdue payments

Tabs provides finance teams with full control over invoicing while eliminating manual work, ensuring that every invoice is accurate, timely, and seamlessly integrated into the revenue cycle.