This Help File Page was last Modified on 05/10//2020
Managing Recurring Revenues
This Help File Page was last Modified on 05/10//2020
❑Why 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:
✓There are three general types of services that need to be periodically Invoiced:
1.Central Station Monitoring and monitoring related Service services (e.g., Monitoring, Open and Close Reports, Access Control, Freeze and Carbon Monoxide warning systems)
2.Service Department provided periodic charges for contracted services (e.g., Service Contracts for regularly scheduled Alarm System and File Alarm Inspections)
3.Fixed Term Installment Sales (Leases, Equipment Purchases)
✓Identify any Payment Gateway(s) that your Company may be using.
✓Enter the required Pay Groups that will be used to properly Price your Recurring Service entries.
❑Automatic Billing Features:
✓The Amount actually Billed to a Subscriber is based on a Monthly Rate multiplied by the number of Months of Service being billed.
✓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 multiple Recurring Billing Cycles feature (where different groups of Subscribers may be billed at different times throughout the Month):
✓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 Recurring Billing rule(s) 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.
✓Alternately, when the above process becomes impractical, use the Fully Automated Recurring Billing method where those Subscribers who should be billed for Recurring Services that day are automatically Invoiced on that day.
▪Recurring Billing Cycles may be used to identify:
oA specific Billing Day within the month when a set of Recurring Revenue charges will be created (e.g., week 1, 2, 3 and 4; or day 11, day 26, etc.)
oA special 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.) or use an Automatic Payment Gateway (See the Authorize.net, Forte.net, and the InnoEpay chapters) for that purpose.
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.
✓The Fully Automated Recurring Billing feature also provides an additional process for automatically charging Credit Cards and/or executing Bank Drafts on or about each Invoice's Due date (as set by your Company).
✓See the discussion below on the Auto Draft field for more information.
•Recurring Revenue Reports are available that provide reporting for virtually anything your Company would need to know about those Recurring Revenues.
•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!
✓But, when an Automatic Recurring 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.
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.
•Next, create the Billing Cycles to identify when the Recurring Revenue items will be billed and what type (or period with the month) will be billed.
➢Important Information - See the "Understanding How and Why the Auto Draft and Auto Bill options are used on the Billing Cycles Form" discussion below!
Billing Cycles Form - specialized Recurring Billing Cycle definition
•Finally, once you have entered your Subscribers,
1)Identify any Payment Methods they may want to use
Subscriber Edit View, Payment Methods option - Payment Methods dialog
2)Create the required Automatic Billing entries
Recurring Information tab on the Recurring Revenue Form