Managing Recurring Revenues

This Help File Page was last Modified on 05/23/2019

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Managing Recurring Revenues

This Help File Page was last Modified on 05/23/2019

Defining, Billing, Tracking and Reporting Recurring Revenues


Automate the Recurring Revenue Billing Process because it is one of the most important tasks performed (and powerful features provided) by this Accounts Receivable Module.

Setting up the Recurring Revenue Billing Process:

Define the Recurring Services that will be periodically Invoiced to those Subscribers receiving these services as Recurring Revenue Sales Items

Those Recurring Revenue Sales Items represent the Descriptions and Pricing of Sales for the Recurring Services that the Company is providing.

Recurring Revenue Sales Items will then be used to define the Automatic Billing rule(s) for each Subscriber.

Enter the required Pay Groups that will be used to properly Price your Automatic Billing entries.

After entering your Subscribers, Define their Automatic Billing rule(s).

Identify any Subscribers who want to have their Recurring Revenue Invoices Paid Automatically when due (via Credit Card or Bank Draft).

Implement Billing an Alarm Dealer's Accounts using Division Codes if your Company provides Central Station Monitoring (Contract Monitoring Services) for other Alarm Companies.


Automatic Billing Features:

Subscribers may be automatically billed for 1, 2, 3, 6, 12 and/or 24 months of service at one time.

The Amount actually Billed to a Subscriber is based on a Monthly Rate multiplied by the number of Months of Service being billed.

Any number of Subscriber Service Locations may be billed to a specific Billing Address with an itemized Invoice - sub-divided on that Invoice by each specific Service Location.

Each of these Subscriber's Service Locations may be billed for different services, on different billing cycles, with different explanations of the service(s) being provided, and even individual P.O.#'s for each subordinate location and/or each individual Recurring Revenue item.  

To bill Recurring Revenue using the Recurring Billing Cycles feature (where different groups of Subscribers may be billed at different times throughout the Month):

The Bill Recurring Revenue in Cycles box must be Checked (as shown in the illustration below) on the Invoice/Proposal sub-tab on the Company Options tab of the User Options Form




For smaller Companies, billing all of your Recurring Revenues for a month will usually be done in one day as a single process.

However, larger Alarm Companies may find that generating a huge number of Invoices all at once is unmanageable.  

To resolve this problem, MKMS allows you to define any number of Recurring Billing Cycles, and then assign one of those cycles to each Subscriber's Automatic Billing information to identify when (in what Billing Cycle) that Subscriber will be billed.

Later, as you enter the Recurring Revenue rules for each Subscriber, you will be able to select the specific billing cycle in which that Subscriber is to be billed.

These Recurring Billing Cycles may be used to identify:

oA specific time within the month when a set of Recurring Revenue charges will be created (e.g., week 1, 2, 3 and 4)

oA special purpose set of Accounts (e.g., those Subscribers automatically paying Recurring Revenue charges with Credit Cards, those Subscribers who represent Multi-location Accounts, those Subscribers paying by E.F.T.)

oAny other designated group of Subscribers - as identified by you - who are to be billed for their Recurring Revenue charges at the same time.

Meld Late Fee and RR Invoices?  If you plan to bill your Company's Recurring Revenues and Post Late Fees on the same day as most of our Users do, AND you would like both of these (Recurring Revenue and Late Fee) charges to appear on the same Invoice, Check this box.

Important: If you did Check this box to have Late Fees included on their Recurring Billing Invoices, be certain to Run the Automatic Recurring Billing process BEFORE you Assess Late Fees.


Once those Auto Billing rules are defined properly for each Subscriber, to actually Bill the Recurring Revenue:

A User will simply execute a virtually One-Click - totally Automatic Billing process!

Recurring Revenue Reports are available that provide reporting for virtually anything your Company would need to know about those Recurring Revenues.

Once billed, see the Accounts Receivable module's Reports Menu for a complete listing of Recurring Revenue related Reports.


What's Next?

Now that you have a basic understanding of the Automatic Billing process, and prior to setting up any Automatic Billing rule(s) for your Subscribers, you must define the Recurring Revenue Sales Items in the Sale-Purchase Items Form.

a)From the Backstage Menu System Select Maintenance and Choose General and Click the Sale-Purchase Items option, or

b)From the Quick Access Menu, Select Maintenance and Choose the Sale-Purchase Items option.



Sale-Purchase Items Form - Recurring Revenue Item


Each Recurring Revenue Sales Items must begin with a capital "R", followed by a Dash ("-"), and then followed by at least one number, or upper case letter, or any combination of these.

The end result is that you will be able to define - and therefore bill automatically for - an almost unlimited number Recurring Revenue types!

The Recurring Revenue Sales Items will also require that you enter a Retail Price - which will become the default price inserted if you must manually enter a Sale for a Recurring Revenue item.

But, when an Automatic Billing rule is defined for a Subscriber, the selected Recurring Revenue Sales Item's Retail Price is not the rate the Subscriber will pay for the Recurring Revenue item.

This is because the Automatic Billing Price for Recurring Revenue Sales Items is based on the Amount entered for the Pay Group code that is assigned to each Auto Billing entry.


So, the next step is to define the Pay Groups that will be used to properly Price your Company's Automatic Billing Rates.

a)From the Backstage Menu System Select Maintenance and Choose General and Click the General Maintenance option which displays the Maintenance Menu, or

b)From the Quick Access Menu, Select Maintenance and Choose General Maintenance to display the Maintenance Menu.


Once the Maintenance Menu is displayed, Select Receivables and Choose Pay Groups.



Recurring Revenue - Pay Groups Form


Any number of Pay Groups may be defined, as needed.

However, a Pay Group code Price (Amount) may easily be overridden for an individual Subscriber.  

oTo do so, Check the Custom Pay Amount box on the Recurring Revenue Form and then enter the preferred Price for that specific Subscriber in the Amount field that will be provided.


Finally, once you have entered your Subscribers, create the required Automatic Billing entries.



Recurring Information tab on the Recurring Revenue Form