back charge

Definition

A billing that is made to collect an expense that is incurred in a previous billing period. This may be an adjustment that is due to an error, or it could be for the purpose of collecting an expense that was not billable until a later period due to issues of timing. When possible, it is best to avoid having to back charge for products or services. Because customers do not expect back charges, they can be confused with billing errors and they often take longer to collect.

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