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What is the difference between the Charge setting and the Invoice setting in the Avatax for Stripe connector and which one should I choose?

Overview

You want to know the difference between the Charge setting and the Invoice setting in AvaTax for Stripe Invoicing

Environment

Stripe Invoicing

Resolution

  • Stripe identifies different types of charges for their customers by differentiating them with the Charge Object and the Invoice Object in the stripe API.

    • The Invoice Object: This button should be selected when you provide a subscription based sales model and charge your customers on an annual basis. Invoices are statements of what a customer owes for a particular billing period, including subscriptions, invoice items, and any automatic proration adjustments if necessary.

    • The Charge Object: This button should be utilized in the connector when you charge your customers on a one time basis. For example when you create an invoice or sale on a one time credit or debit card charge

  • The method for how you Bill your customer for the products and services that you sell determines which option you should choose in the Avatax for Stripe connector.