This Help File Page was last Modified on 05/07/2018
Run Automatic Billing
This Help File Page was last Modified on 05/07/2018
❑Automatic Billing of Recurring Revenue - One of the most powerful features in the MKMS Accounts Receivable module is the automation of Recurring Revenue Billing, the following steps must have been completed before this automated billing process may be used:
•Sale-Purchase Items for the types of Recurring Revenue related services that you provide must be created.
Sale-Purchase Items Form - Recurring Revenue Item
✓These are called the Recurring Revenue Sales Category Codes.
•Pay Groups need to be entered to establish the normal rates for the Recurring Revenue related services you provide.
Pay Groups Form
•If you plan on billing using the Recurring Billing Cycles feature (where different groups of Subscribers may be billed at different times throughout the month), these Billing Cycle groups must be defined and assigned to the appropriate Subscribers.
Recurring Revenue Billing Cycles Form
Recurring Revenue Form - Recurring Information Tab - Open Term entry
❑Billing Recurring Revenue - Although simple to do, this may be the most powerful feature within the Accounts Receivable System module.
Auto Billing dialog for billing 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.
➢Note: Recurring Revenue is batched, tracked and stored within MKMS by the Year, Month and Billing Cycle entered here.
▪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 for this billing.
✓Sale Date - Enter the Sale Date to appear on the Invoices generated with this Auto Billing process.
✓Due Date - By default, this will be set based on the Sale Date entered above and your Company's Terms set in Company Options.
▪Enter the Due Date to appear on the Invoices generated with this Auto Billing process
Auto Billing dialog
Multiple Recurring Billing Cycles are implemented
Individual Subscriber Terms are implemented
oIn Company Settings, if the UseSubscriberTerms option is set to True ("T"), no Due Date will be required because each Subscriber's Terms (and therefore their Due Date ) may be individually set.
oSee Setting the Due Date for more information.
✓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.
•Run - Click Run to execute the Auto Billing process.
✓When the process is completed, the Total Billed: amount will be displayed.
✓Well, that was easy!
✓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 Starting 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 Starting 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 Starting 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.