Auto Bill - Billing Recurring Revenue by Cycles

This Help File Page was last Modified on 12/11/2019

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Auto Bill - Billing Recurring Revenue by Cycles

This Help File Page was last Modified on 12/11/2019

Auto Bill - The Manually executed Automatic Billing of Recurring Revenue Cycles

How to set up MKMS for Automatic Recurring Billing

 

Whether or not the Fully Automated Recurring Billing process is being used, MKMS provides this Auto Billing Form for Generating the appropriate Invoices for Selected Billing Cycles (One Cycle at a time).  

This Auto Billing process will also generate the Payment Batch file if the Auto Draft box is Checked on the Billing Cycles Form and you are using an Automatic Payment Processor (i.e., InnoEPay, Authorize.net and/or Forte.net).

 

See the Auto Billing Recurring Revenue chapter.

Also, see the Fully Automated Recurring Billing chapter for information on that feature.

 

One of the most powerful features in the MKMS Accounts Receivable module - with the exception of Fully Automated Recurring Billing - is the automation of Recurring Revenue Billing by Billing Cycles.

The following steps must have been completed before this automatic billing process may be used:

 

1.Sale-Purchase Items for the types of Recurring Revenue related services that you provide must be created.

 

HelpFilesRecurringRevenueSalesItem

Sale-Purchase Items Form - Recurring Revenue Item

 

These are called the Recurring Revenue Sales Category Codes.

 

2.Pay Groups need to be entered to establish the normal rates for the Recurring Revenue related services you provide (individual Custom Rates may be used when necessary).

 

HelpFilesPayGroups

Pay Groups Form

 

a)See the Recurring Revenue - Defining Open Term Billing chapter for more information about setting a Custom Pay Amount.

b)See the Custom Pay Increase chapter for more information about changing a Custom Pay Amount.

c)See the RMR Rate Change chapter for information on how to track all Rate Changes.

 

3.If you plan on billing using the Recurring Billing Cycles feature (where different groups or types of Subscribers may be billed automatically at different times throughout the month), a Billing Cycles record for each type must be defined and then assigned to the appropriate Recurring Revenue records as appropriate for that Subscriber.

 

Important Information - See the "Understanding How and Why the Auto Draft and Auto Bill options are used on the Billing Cycles Form" discussion in the Billing Cycles chapter!

 

HelpFilesRecurringBillingCyclesDefaults

Recurring Revenue Billing Cycles Form

 

4.Finally, the Subscriber's Recurring Revenue information must be entered for each Subscriber who will be billed for one or more Recurring Revenue Contracts.

 

HelpFilesRecurringRevenueForm

Recurring Revenue Form - Recurring Information Tab - Open Term entry

 

Billing Recurring Revenue - Although simple to do, with the exception of Fully Automated Recurring Billing, this may be the most powerful feature within the Accounts Receivable System module.

 

HelpFilesAutoBillingProcedure

Auto Billing dialog for manually billing (versus Fully Automatic Recurring Billing of) Recurring Revenue

 

To open the Auto Billing Form:

a)From the Backstage Menu System Select File and Choose Receivable and Select the Run Automatic Billing option, or

b)From the Quick Access Menu, Select File and Choose Receivable and Select the Run Automatic Billing option, or

c)In the Receivables Tab on the MKMS Desktop, Click the Auto Bill Icon.

 

Fill in the entries as described below:

Period To Bill - Use the Drop-Down Selection List es provided to enter this information.

Year - By default, it will be the current year unless this is the last month of the year, in which case the following year will be offered.  Enter the year for this billing.

Month -By default, it will be the month following the current month.  Enter the appropriate month for this billing.

Cycle - Enter the appropriate Recurring Billing Cycle to be billed.

 

Sale Date - Enter the Sale Date to appear on the Invoices generated with this Auto Billing process.

By default, this will be Today but may be changed as needed.

a)Click on the Date field and type the desired Date using a MM/DD/YYYY format; or

b)Use the Drop-Down Calendar/Date Entry field provided to Choose the desired Date

 

Due Date - Enter the Due Date to appear on the Invoices generated with this Auto Billing process.

1)In Company Settings, if the UseSubscriberTerms option is set to False ("F"): the Due Date will be Sale Date + Value (i.e., Number of Days from the Sale Date which the Due Date should be set) based on the Terms defined in the Company Options - General sub-tab on the Company Options tab of the User Options Form  

a)To change this Date, Click on the Date field and type the desired Date using a MM/DD/YYYY format; or

b)Use the Drop-Down Calendar/Date Entry field provided to Choose the desired Date

2)In Company Settings, if the UseSubscriberTerms option is set to True ("T"), no Due Date field will be available because each Subscriber's Terms (and therefore their Due Date ) may be individually set.

 

Last 20 Periods Billed - This area displays the Year, Month and Cycle of (up to) the last 20 Auto Billing procedures executed by the system.

Initially, this will be blank (only zeros displayed).  

Once you have billed the selected billing cycle, the Year, Month and Cycle information will be displayed.

 

Review Cycle List - The Show Billing Cycles Form is available by selecting the Review Cycle List button on the Auto Billing Form (see illustration below)

 

HelpFilesAutoBillingProcedure-ReviewBillingCyclesOption

 

This Show Billing Cycles Form displays a complete list of all Billing Cycles and includes the associated Banking, Credit Card and Payment Gateway information when defined (see illustration below) .

 

HelpFilesShowBillingCycles

Show Billing Cycles dialog

 

Generate Billing - Click Generate Billing to execute the Auto Billing process for the selected Cycle.

When the process is completed, the Total Billed: amount will be displayed.

Well, that was easy!

 

Show Batch List - Click Show Batch List button to display the Payment Batch / File Generation dialog containing a list of Payment Batch files and their Batch File Detail information.

This option (and the associated ePay Generate File Form) is only needed when your Company is using an Automatic Payment Gateway (i.e., InnoEPay, Authorize.net, Forte.net), and/or a Manual Payment Gateway to process pre-approved Credit Card and Bank Draft Payments

 

HelpFiles-ePayGenerateFileDialog

Payment Batch / File Generation dialog is accessed from either the Auto Bill or Auto Draft Form

 

Close - Click the Close button to close the Automatic Billing Form.

 

For General Ledger System Users - When a Recurring Revenue Item is billed automatically, the question is:

When is the Recurring Revenue Earned for the First Month of the Period of Service being billed, and when is that First Month's Recurring Revenue Deferred to the next Month?

a)When the Auto Billing Sale Date entered is within the First Month of the Period of Service being billed, and the Billing Day - which is identified in the Billing Cycle record - is the First day (i.e., '1') of the Month and Year of the Period To Bill chosen in the Auto Billing dialog, the First Month is Earned and posted on the last day of that First Month using Post Deferred Revenue procedure);

b)Otherwise, that First Month's Recurring Revenue is Deferred until the next Month as described below (these are the only other possible cases):

i.The Auto Billing Sale Date entered is dated within the Month before the First Month of the Period of Service being billed (i.e., your Company Bills in Advance) and the Billing Day - which is identified in the Billing Cycle record - is the First day (i.e., '1') of the Month and Year of the Period To Bill chosen in the Auto Billing dialog, therefore the Recurring Revenue is Deferred to the next Month after Sale Date (which in this case is actually the First Month of the Period of Service being billed);

ii.The Auto Billing Sale Date entered is dated on or after the First day of the First Month of the Period of Service being billed, but the Billing Day - which is identified in the Billing Cycle record - is Not the First day (e.g., it is 2...31) of the Month and Year of the Period To Bill identified in the Auto Billing dialog, so the Recurring Revenue for this First Month of the Period of Service being billed will not be fully earned until the next Month, therefore the Earned Recurring Revenue for this First Month is Deferred to the next Month.

c)Earned Revenue is always posted to the General Ledger System  - using the Post Earned Revenue process - on the Last Day of the selected Month being posted, whether that process is run at the end of the Month and Year being posted, or in a subsequent (later) Month.

 

See the Auto Bill Recurring Revenue chapter for a more detailed explanation of this process and some additional variables which may be presented.