Intermediate

Self-Billing Invoice

Also known as: Self-Billing, Recipient-Created Invoice, RCTI

What is Self-Billing Invoice?

A Self-Billing Invoice is one the broker generates on the partner's behalf, rather than waiting for the partner to raise it. The broker calculates the commission owed, produces the invoice, and pays against it under a prior self-billing agreement.

Key takeaways
  • The broker raises the invoice for the partner, not the other way round
  • Standard in performance affiliate finance because the broker holds the conversion data
  • Requires a prior self-billing agreement that names it the tax and payment document
  • Partners get paid on schedule without submitting or chasing paperwork
  • Always reconcile the self-billed total against your own tracker before accepting

How it works

Under a self-billing agreement, the partner authorises the broker to create invoices in the partner's name. At the close of each period the broker's platform tallies qualified conversions, applies the agreed CPA, CPL, RevShare or rebate rate, deducts any fees, and generates an invoice document that already carries the partner's details.

The broker then pays against that self-generated invoice on the agreed date. Because the figures come straight from the broker's tracking of record, there is no round-trip of the partner raising an invoice and the broker approving it. The trade-off is that the broker's number is authoritative by default, so the partner's only leverage is independent tracking: reconcile the self-billed total line by line, and flag any gap caused by a failed postback or under-counted FTDs before the payment cycle closes.

  1. Sign self-billing agreement

    Both parties agree in writing that the broker may raise invoices in the partner's name as the tax document.

  2. Broker tallies conversions

    At period end the platform counts qualified conversions and applies the contracted rate.

  3. Invoice auto-generated

    The system produces a self-billed invoice carrying the partner's legal and tax details.

  4. Partner reconciles

    The partner checks the invoice against their own tracker to catch under-counted conversions.

  5. Payment released

    The broker pays against its own invoice on the agreed date without further paperwork.

Why it matters for partnership: Self-billing is the norm in performance affiliate finance because the broker holds the conversion data. It removes friction: partners get paid on schedule without chasing, and the numbers always match the broker's tracking of record.

Real World Example

At month end, the broker's system tallies an affiliate's 40 qualified FTDs at $250, generates a self-billed invoice for $10,000, and pays it on the agreed date without the affiliate submitting anything.

Self-billing vs partner-raised invoicing
Aspect Self-billing Partner-raised invoice
Who issues Broker Partner
Data source Broker's tracking of record Partner's own figures
Speed to payment Fast, on schedule Slower, needs approval
Reconciliation onus On the partner to check On the broker to verify

Pro Tip

Reconcile every self-billed invoice against your own tracker before accepting it; the broker's number is authoritative but not infallible.

Common Pitfalls

Blindly trusting self-billed totals and never spotting under-counted conversions caused by a broken postback.

FAQ

Do I still need to issue my own invoice?

Under a self-billing agreement, no. The broker's self-billed invoice is the tax and payment document.