We're excited to roll out new contract functionality designed to streamline your business operations. To help you make the most of it, let's clarify the purpose of three essential documents you'll use when interacting with your customers: the Contract (Statement of Funeral Goods and Services Selected), the Invoice, and the Receipt.
These documents are key tools for clear communication, proper record-keeping, and ensuring smooth transactions between you and your customers.
TL;DR
Contract (Funeral Service Agreement): Defines the entire arrangement, scope of services, merchandise, and total cost. It's the comprehensive plan signed at the beginning, setting out the complete financial obligation before payments are made.
Invoice: The formal request for payment for the services and merchandise listed in the contract. It reflects the amount currently due or recently settled.
Receipt: Proof that a payment has been made, acknowledging the exact amount received and the date. It's the record of a completed financial transaction against the invoice/contract.
Quick Reference Table
Feature/Purpose | Contract (Statement of Funeral Goods and Services Selected) | Invoice | Receipt |
Primary Purpose | Defines the entire funeral arrangement & total cost; FTC required. | Requests payment for specific goods/services. | Confirms customer's payment has been received. |
Timing | *A SFGSS is auto-generated upon the online checkout completion for an at-need pay now. Need to define this for others | Issued when payment is due (e.g., deposit, final balance). | Issued immediately after payment is made. |
Shows Payments? | No (sets terms for future payments). | No (requests payment); shows discounts. | Yes (confirms payment made). |
Focuses On | "What's agreed upon & will be provided/owed." | "What's due now for what's been done/will be done." | "What's been paid." |
For Your Business | Legal compliance, service planning, total billing basis. | Billing & accounts receivable. | Payment confirmation & reconciliation. |
1. The Contract (Statement of Funeral Goods and Services Selected)
What it is:
In the funeral industry, the Contract is primarily represented by the Statement of Funeral Goods and Services Selected (SFGSS). This is the foundational legal document that you are federally required by the FTC Funeral Rule to present to every customer. It outlines every item and service selected, along with its cost, before the customer makes their final decision and before services are provided. Think of it as the complete, itemized plan for the funeral arrangements.
What it helps you define with your customer (and is required to include):
Itemized List of Goods & Services: A detailed breakdown of every single service (e.g., embalming, cremation, visitation, memorial service) and merchandise item (e.g., casket, urn, vault, prayer cards, floral arrangements) chosen by the customer.
Price of Each Item: The specific cost for each good and service.
Total Agreed-Upon Price: The complete, summed cost for all chosen items and services.
Payment Terms: How and when payments from your customer will be made (e.g., upfront deposit, payment prior to services, payment within a certain timeframe).
Cash Advance Items: Items you pay for on the family's behalf (e.g., clergy honorarium, death certificates, obituary notices).
Legal Disclosures: Various disclosures mandated by the FTC Funeral Rule (e.g., embalming disclosure, cash advance item statement, cremation disclosures).
What it DOESN'T show:
Individual payments made: Because the SFGSS is established before payments begin, it doesn't track specific transactions. It sets the stage for those payments.
When you'll use it:
At the conclusion of the arrangement conference, once the family has made their selections, and before they commit to paying or services are rendered.
2. The Invoice
What it is:
An Invoice is your formal request for payment from your customer for the funeral goods and services you've provided, or for a particular milestone payment (e.g., a deposit), as defined in their SFGSS. It's essentially the "bill" you send to your customer.
What it helps you convey to your customer:
Reference to SFGSS: Often clearly references the associated Statement of Funeral Goods and Services Selected.
Amount Due: The precise total your customer needs to pay for this specific billing period or payment milestone.
Due Date: When you expect the payment from your customer.
Invoice Number: A unique identifier for your records and your customer's.
Breakdown (Often Simplified): While the SFGSS is fully itemized, an invoice might summarize categories (e.g., "Total Services," "Total Merchandise," "Cash Advance Items") while still providing the required detail if it's the final bill.
Discounts: If you've offered any applicable discounts, they will be clearly shown as a reduction here.
Why it's essential for your business:
Official Payment Request: It's your formal notification of what your customer owes you.
Revenue Tracking: Helps you meticulously track your sales and accounts receivable.
Transparency: Provides your customer with a clear summary of their charges based on their prior selections.
What it DOESN'T typically show:
Proof of payment: An invoice asks for money; it doesn't confirm money has been received.
Refunds (usually): While discounts reduce the amount owed on an invoice, a refund is money given back and is typically handled via a Credit Memo or Refund Receipt (see below).
When you'll use it:
According to the payment terms you've established with the family in the SFGSS (e.g., for a required deposit, for the final balance due prior to services).
3. The Receipt
What it is:
A Receipt is your official confirmation to your customer that their payment has been successfully received by you.
What it helps you confirm for your customer:
Amount Paid: The exact sum of money your customer remitted.
Date of Payment: When the transaction occurred.
Method of Payment: How your customer paid (e.g., credit card, bank transfer, check, insurance assignment).
Reference to Invoice: Typically includes the invoice number that the payment is for, or states "Payment for funeral services of [Deceased's Name]."
Remaining Balance (if any): If the payment was partial, it will indicate the new outstanding balance on their account.
Why it's essential for your business:
Customer Trust: Provides your customer with immediate proof that their payment was processed.
Record Keeping: Crucial for your internal accounting and reconciliation processes.
Dispute Resolution: Serves as clear evidence of payment if any questions arise.
When you'll use it:
Immediately after your customer's payment has been successfully processed and confirmed.
Situation | Timing of SFGSS |
At need/Pay Now | Signed by family upon payment submission |
At need / Pay Later | Can be generated at your discretion |
Imminent | Generated but not sent |
Pre-Need | Generated but not sent |
We believe this enhanced functionality will give you greater control and clarity in managing your customer relationships and meeting regulatory requirements. If you have any questions as you begin using these features, our support team is here to help!