USACE-Rate
Two Methods of Invoicing

Two Methods of Invoicing

Two Modes of Invoicing

There are two methods, or “modes,” of invoicing under the E-Rate Program: Billed Entity Applicant Reimbursement (BEAR) and Service Provider Invoicing (SPI). The applicant decides which type of invoicing method to use on a particular Funding Request Number (FRN).

Once an invoice has been submitted for certification, the invoicing mode is set. USAC’s processes will block invoices that do not follow the invoicing mode already set for an FRN unless a formal “invoice mode change” is requested and granted.

Invoicing Method One: FCC Form 472 or Billed Entity Applicant Reimbursement (BEAR) 

Applicants file the FCC Form 472 or Billed Entity Applicant Reimbursement (BEAR). Under the BEAR method:

  • The applicant pays the service provider in full for eligible equipment and services approved on the FCC Form 471.
  • The applicant invoices USAC for the discount portion of the bill.
  • USAC reviews the invoice, and if approved, pays the applicant directly.
  • Billed entities receive payment directly to their bank account.

Applicants must have a 498 ID on file with USAC to receive direct BEAR payments. To obtain an applicant 498 ID, applicants must file the FCC Form 498 (Service Provider and Billed Entity Identification Number and General Contact Information Form) in the E-Rate Productivity Center (EPC).

Invoicing Method Two: FCC Form 474 or Service Provider (SPI) Invoicing

Service providers file the FCC Form 474, or Service Provider Invoice (SPI) form, after billing the applicant for the non-discounted amount (the non-discounted amount is the applicant’s financial responsibility).  Service providers are reimbursed by USAC for the discounted amount of the bill. Under the SPI method:

  • Applicants are billed by the service provider for the cost of the non-discounted portion of the eligible equipment and services listed on the SPI form. Applicants do not pay the service provider for the discounted portion invoiced to USAC.
  • After the service provider has billed the applicant, the service provider submits a SPI form to USAC for the discounted amount of the bill.
  • USAC reviews the invoice and pays the service provider if payment is approved.

Applicants are obligated to pay the non-discounted portion of the cost of the eligible equipment and services. USAC may require proof that the applicant has paid the non-discounted portion of the bill before paying an invoice.

 

How to Request an Invoice Mode Change

An applicant can request to change their invoice mode from Billed Entity Applicant Reimbursement (BEAR) to Service Provider Invoicing (SPI) or vice versa. To request the change, the applicant must take the following steps:

  1. Return all funding received so far.
  2. Cancel any pending invoices.
  3. Go to EPC > Records > Funding Requests > Enter the FRN to search for it.
  4. Click the FRN hyperlink and then go to Related Actions > Manage Invoice Mode Change.
    • The option to “Manage Invoice Mode Change” will only be available if all funds on the FRN have been returned and any pending invoices canceled.
  5. In EPC, the applicant will need to submit a written acknowledgement from the service provider regarding the change.

More details on submitting mode changes in EPC are available in the eLM/EPC User Guide here.