# Glossary

> Plain definitions of the terms used across Tillage, from variance and gross-up to billing profiles and MRR.

- URL: https://tillage.ai/docs/reference/glossary
- Section: [Reference](https://tillage.ai/docs/reference)

The terms you'll meet in Tillage and these docs, in alphabetical order. Status names are listed in the tables at the end.

## Terms

**ACH**: US bank debit through Stripe. Cheaper than cards (0.8%, capped at $5) and settles in 1–3 business days. Other countries have their own bank debit, such as SEPA or Bacs. See [Bank transfers](https://tillage.ai/docs/invoices/send-and-get-paid#bank-transfers).

**API key**: A secret token, starting with `tk_live_`, that lets your own software or an AI assistant work with one team's data. Created in **Team Settings → Developers** with chosen scopes. See [API and webhooks](https://tillage.ai/docs/integrations/api-and-webhooks).

**ARR (annual recurring revenue)**: Every active billing schedule converted to a yearly amount and added up.

**Auto-pay**: Tillage charging a client's saved payment method when an invoice is due, without the client paying by hand.

**Auto-Payment Consent**: A client setting that controls auto-pay: **Never**, **Recurring Only** or **All Invoices**. See [Auto-pay and saved cards](https://tillage.ai/docs/invoices/autopay-and-saved-cards#set-auto-pay-consent).

**Auto-send**: Sending an invoice automatically on its issue date. A one-off invoice with auto-send on is **Scheduled** until then.

**Base cost**: Quantity × unit price for a line item, before variance and margin.

**Base Subtotal**: The total of every line's base cost.

**Billing Dashboard**: Your client's portal, listing all their invoices and payments from one link. See [Client portal](https://tillage.ai/docs/clients/client-portal).

**Billing profile**: A Stripe customer linked to a client. Saved payment methods belong to a billing profile. Most clients have one.

**Billing schedule**: Anything that creates invoices on a schedule: a recurring invoice or a payment plan. Listed under **Invoices → Billing Schedules**.

**Business absorbs**: A fee setting where your business pays the fee out of the payout, and the client pays only the invoice amount.

**Client pays**: A fee setting where the fee is added to the client's total at checkout.

**Connect Existing**: Linking a Stripe account you already have to Tillage, through Stripe's sign-in. Your data stays in your own account.

**Express account**: A Stripe account Tillage creates for you during setup, with a simplified Stripe dashboard.

**Gross-up**: Adding the processing fee to a charge so that, after Stripe takes its fee from the total, you still receive the full amount. See [Formulas](https://tillage.ai/docs/reference/formulas#fee-gross-up).

**IIF**: The file format QuickBooks Desktop uses for exports. Tillage imports invoices from it.

**Issue date**: The date on an invoice. Auto-send and recurring invoices use it to decide when to go out.

**Line total**: A line item's final price: base cost with variance and profit margin applied.

**MCP (Model Context Protocol)**: An open standard for connecting AI assistants to apps. Tillage's MCP server lets Claude, ChatGPT and other assistants work in your account. See [Claude, ChatGPT and other AI assistants](https://tillage.ai/docs/integrations/claude-and-chatgpt).

**MRR (monthly recurring revenue)**: The total of your active monthly billing schedules.

**Pass-through**: A fee passed to your client at cost. Tillage never adds a markup.

**Payment link**: The secure link to an invoice, where your client views it and pays. No account needed.

**Payment method link**: A secure link that lets a client add or update a saved card or bank account without paying. Expires in 30 days.

**Payment plan**: A billing schedule that splits a project into set installments, such as a deposit and milestones. Created from a contract or quote payment schedule.

**Payment schedule**: The plan for when a contract or quote is paid: deposit, milestones, installments or recurring payments. See [Payment schedules](https://tillage.ai/docs/contracts/payment-schedules).

**Platform fee**: Tillage's fee on online payments: 1% of the invoice, capped at $50.

**Process Payment**: Charging a client's saved payment method yourself, from an invoice.

**Processing fee**: Stripe's fee for handling a card or bank payment.

**Profit margin**: A percentage added to every line of a quote, on top of variance. It works as a markup: 20% multiplies the price by 1.20.

**Receivable aging**: Unpaid invoices grouped by how far past due they are: 1–30, 31–60, 61–90 and 91+ days.

**Recurring invoice**: A billing schedule that creates the same invoice on a set frequency, for retainers, care plans and subscriptions.

**Scope**: A permission on an API key or AI connection, such as `invoices:read`.

**Smart variable**: A placeholder like `{clientName}` that Tillage fills in automatically. See [Smart variables](https://tillage.ai/docs/reference/smart-variables).

**Surcharge**: An extra charge for paying by card. Passing the processing fee to clients counts as one, and it's prohibited in Connecticut, Massachusetts and Puerto Rico.

**Variance**: A per-line buffer for estimate risk, such as unclear scope or revision rounds. Added before profit margin.

**Webhook**: A message Tillage sends to your server when something changes, such as `invoice.paid`.

## Invoice statuses

| Status | Meaning |
|---|---|
| **Not Sent** | Draft, visible only to your team |
| **Scheduled** | Will be sent automatically on its issue date |
| **Issued** | Sent or marked issued, awaiting payment |
| **Late** | Past due and unpaid |
| **Processing** | Payment in progress, usually a bank transfer |
| **Verifying** | Client's bank account needs verifying before payment |
| **Paid** | Paid in full |
| **Partial Refund** | Part of a payment was refunded |
| **Refunded** | Fully refunded |
| **Cancelled** | No longer collectible |

An invoice's payment can also show **Unpaid** or **Failed**, for example after an auto-charge is declined.

## Billing schedule statuses

| Status | Meaning |
|---|---|
| **Draft** | Saved but not creating invoices |
| **Active** | Creating invoices on schedule |
| **Paused** | Temporarily stopped |
| **Completed** | Finished its set number of invoices |
| **Cancelled** | Stopped for good |

## Quote statuses

| Status | Meaning |
|---|---|
| **Not Sent** | A draft, not yet sent |
| **Sent** | Sent to the client |
| **Viewed** | The client has opened it |
| **Approved** | The client accepted it |
| **Rejected** | The client declined it |
| **Contracted** | A contract has been created from it |
| **Invoiced** | An invoice has been created from it |
| **Expired** | Past its expiry date without a response |

## Related

- [Formulas](https://tillage.ai/docs/reference/formulas)
- [FAQ](https://tillage.ai/docs/reference/faq)

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