> ## Documentation Index
> Fetch the complete documentation index at: https://harnesscalendar.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# How billing works

> Track the money movement of your studio.

**Charge → Invoice → Payment → Balance.** Charges, invoices, and payments all live on an **account**, the payer behind a student. Each one is recorded as a **transaction**; see [Understand your transactions](/docs/billing/understand-your-transactions) for the full record and what each kind is.

## Charges

| Source    | How it's created                               | What it sets                                                          |
| --------- | ---------------------------------------------- | --------------------------------------------------------------------- |
| Lesson    | Mark a lesson attended                         | The lesson's rate, dated to the lesson                                |
| Recurring | A standing fee on the account, on its schedule | The fee's amount; see [Recurring charges](/docs/billing/recurring-charges) |
| Manual    | **Add charge** on **Finances → Transactions**  | Amount, description, date, account                                    |

A charge sits on the account until it's billed and paid. A charge's amount is fixed when it's created: changing a rate or a recurring fee later only affects future charges. See [Run a lesson](/docs/lessons/operate-a-lesson).

You can also charge for an event that isn't a lesson, like a paid gig. That money is tracked as studio income (Other Income), separate from any student's account. See [Create an event](/docs/calendar/create-an-event).

## Invoices

An invoice collects one or more of an account's charges into a single bill. It starts as a draft you can edit; sending it fixes the charge list and the recipients. Payment settles it. [Send an invoice](/docs/billing/send-an-invoice).

Harness can build invoices itself: each account bills on a **cycle** (daily, weekly, or monthly), and at each close its uninvoiced charges collect into one invoice, drafted for review or sent outright. See [Automated billing](/docs/billing/automated-billing).

## Payments

| Method                | How it's recorded                             |
| --------------------- | --------------------------------------------- |
| Cash, check, transfer | By hand                                       |
| Online card           | Automatically, through the invoice's pay link |

Harness allocates each payment and updates the account's balance. See [Record a payment](/docs/billing/record-a-payment).

## Balance and credit

| Balance  | Meaning                                           |
| -------- | ------------------------------------------------- |
| Positive | The account owes you                              |
| Negative | The account is in credit (paid more than it owes) |

**Credit** is separate from balance. It isn't money the account paid; it deducts from the next invoice. See [Credits](/docs/billing/credits).

## Automatic vs manual

| What                                            | How it happens                                                                    |
| ----------------------------------------------- | --------------------------------------------------------------------------------- |
| Charge created when a lesson is marked attended | Automatic                                                                         |
| Recurring charge created on its schedule        | Automatic                                                                         |
| One invoice per account at each cycle close     | Automatic (Professional), per your [automation level](/docs/billing/automated-billing) |
| Sending an invoice yourself                     | Manual                                                                            |
| Recording a cash, check, or transfer payment    | Manual                                                                            |
| Adding a one-off charge                         | Manual                                                                            |
| Charging for a paid event (gig)                 | Manual                                                                            |
| Issuing a credit or a refund                    | Manual                                                                            |

<Note>
  Automatic invoicing is on the Professional plan. Charges and manual billing work on every plan, including the Hobby plan. See [Plans and limits](/docs/settings/plans-and-limits). To set the whole pipeline up, follow [Automate your billing](/docs/guides/automate-your-billing).
</Note>