Bookings represents the total amount of revenue for a signed contract. Let’s look at a customer that signs a contract in December for a $12,000 subscription that starts that next January.
In this instance your Bookings would equal $12,000 in December.
Now that the deal is signed, it’s time to invoice the customer. Your accounting department invoices the customer January 1st for $12,000 with NET30 terms. In this case your Billings would be $12,000 in January.
Let’s take that same contract, but let’s say the sales rep agreed that the customer can pay half up-front and the rest in July. Your accounting department would send an invoice for $6,000 in January and another for $6,000 in July. In this instance your January billings would be $6,000 and July billings would be $6,000.