Billing Cycles (for Recurring Revenue)

This Help File Page was last Modified on 11/25//2019

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Billing Cycles (for Recurring Revenue)

This Help File Page was last Modified on 11/25//2019

Because contracted Recurring Revenue is a critical element in the overall success of your Company.,

before entering these Recurring Revenue Billing Codes, please read the Managing Recurring Revenues chapter to better understand this feature.

 

Billing Cycles for Recurring Revenue provide the ability to divide Subscribers into separate Automatically Billed Groups.

A Subscriber becomes a Member of an Automatic Billing Group simply by having a Recurring Revenue Billing Cycle Code assigned to one (some, or all) of their Recurring Billing records.

That same Subscriber may be a Member of more than one Automatic Billing Group (have multiple Recurring Revenue billing requirements which fall within - and/or are assigned to - different Billing Cycles).

 

This allows each Automatic Billing Group:

To be Invoiced for their Recurring Revenue at different times of the month.

To be Invoiced for their Recurring Revenue for different purposes such as:

a)Subscribers who pay automatically with a Credit Card or Bank Draft

b)Subscribers who are billed earlier in the month versus later in the month

c)Subscribers whose Invoices are delivered via E-mail

d)Subscribers billed using a different Payment Gateway

 

Therefore, these Automatic Billing Groups provide the capability to establish Multiple Billing Cycles within the same Month (enabling automatic invoicing of different sets of Subscribers at different times throughout the Month - which is particularly helpful for those companies having a large number of Accounts), and for Semi-Monthly Billing, Monthly Billing, billing Subscribers who pay by Credit Card versus EFT, who are billed using a different Payment Gateway and who are billed separately from those that want their Invoice sent via e-mail, and most importantly - for any combination of all of the above!

 

Automatic Billing Groups do not restrict any of the other Recurring Revenue Billing capabilities such as automatically billing Subscribers with multiple locations and billing on a Monthly, Bi-Monthly, Quarterly, Semi-Annual, Annual and Bi-Annual basis for both Recurring Revenue that continues indefinitely, and for fixed period billings (for time-payments of installations charges and/or Fixed Term leases and any other contractual obligations with a finite contract length).

 

Billing Cycles may be defined so the associated Subscribers are Billed as a set (Accounts that came on line in the early part of the month versus Accounts that came on line later in the a month, and Billing Cycles let you set the specific Day within the month when those Accounts will be billed.

 

But best of all, using the Fully Automated Recurring Billing feature, all of these cases may be Invoiced automatically on a pre-specified day with all of the other capabilities listed above and below included.

While doing so, those Subscribers who have a Credit Card or Bank Account of file may have their Invoice(s) Paid via electronic transfer managed by a web based Payment Processor (InnoEPay, Authorize.net, and/or Forte.net) on the Invoice's Due date.

When using a Completely Automatic Payment Processor (i.e., InnoEPay, Authorize.net, and/or Forte.net), the Receipts will be deposited in your Company's Bank, automatically Allocated to the Invoice and recorded as Deposited in MKMS.

These Subscribers may have their Invoices Emailed to them, and a Receipt notification Emailed as well.

 

If you plan on billing Recurring Revenue using this Recurring Billing Cycles feature (where different Automatic Billing Groups of Subscribers may be billed at different times and in different ways 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

 

HelpFilesBillRecurringRevenueInCycles

Bill Recurring Revenue in Cycles?

 

Sale-Purchase Items must be created for the types of Recurring Revenue related services that your Company bills for and provides.

 

HelpFilesRecurringRevenueSale-PurchaseItem

Sale-Purchase Item record for Recurring Revenue

 

These are called the Recurring Revenue Sales Category Codes.

 

Pay Groups must be defined to establish the normal Price for the Recurring Revenue related services you provide.

 

HelpFilesPayGroups

 

Individualized Custom Pay Amounts are also supported.

 

The required Recurring Billing Cycles must be defined (as described in this chapter).

 

HelpFilesRecurringBillingCyclesExample

Billing Cycles Form - specialized Recurring Billing Cycle definition

 

HelpFilesRecurringBillingCyclesExample2

Billing Cycles Form - another Recurring Billing Cycle definition

 

Recurring Revenue Billing Definitions must be entered for each Subscriber who is to be billed automatically for that Recurring Revenue.

 

HelpFilesAutoBillOpenTermBillingCycle

Recurring Billing Form

 

Opening the Recurring Revenue Billing Cycles Form:

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 Billing Cycles.

 

HelpFilesRecurringBillingCyclesDefaults

Recurring Revenue Billing Cycles Form

 

Note: There are four predefined System Default Billing Cycle records which should not be deleted (but may be re-named).

 

HelpFilesRecurringRevenueSystemDefaults

Recurring Revenue - System Default Billing Cycles

 

1.Standard - This is the default Billing Cycle and will always be used when the Bill Recurring Revenue in Cycles option is not Checked in the Company Options - Invoice/Proposal sub-tab of the Company Options tab on the User Options Form.

2.Week 2 - If the Bill Recurring Revenue in Cycles option is Checked in the Company Options - Invoice/Proposal sub-tab this is the first of the three additional predefined Billing Cycles.

3.Week 3 - If the Bill Recurring Revenue in Cycles option is Checked in the Company Options - Invoice/Proposal sub-tab this is second of the three additional predefined Billing Cycles.

4.Day 15 - If the Bill Recurring Revenue in Cycles option is Checked in the Company Options - Invoice/Proposal sub-tab this is third of the three additional predefined Billing Cycles.

 

Any number of additional Recurring Billing Cycles may be defined based on your Company's needs.

 

This Recurring Revenue Billing Cycles Form may be Re-sized by Dragging the Top and/or Bottom up or down, and/or the Right side in or out.

 

Navigation Menu - The Navigation Menu is located at the top of the Recurring Revenue Billing Cycles Form.

 

HelpFilesNavigationBar-Generic

This Navigation Menu provides the normal Record Movement, plus Add, Delete, Cancel, Save, and List options.

 

Record Editing View - The details of the currently selected record are displayed below the Navigation Menu at the center (Main Body) of the Recurring Revenue Billing Cycles Form.

 

HelpFilesRecurringBillingCyclesRecordEditingView

Recurring Revenue Billing Cycles Form - Record Editing View

 

To define the Recurring Revenue Billing Cycles which will be used to identify the intra-monthly Billing Cycle for each Auto Billing record.

Click the HelpFilesNavigationMenuNewIcon to start the Recurring Revenue Billing Cycle entry in the Record Editing View.

Billing Cycle ID - Once the record is initially saved, the system will assign an ID number.

 

Description - Enter a brief Description for this Billing Cycle Code entry.

oThe Description may up to 40 characters in length and include upper and/or lower case letters, numbers, spaces and normally used punctuation marks.

 

Billing Day - Enter the Billing Day Number which will be the Day in which the Bill (Invoice) for these Services will be created (dated).

oThis should be the Day number within a month when the Period of Service starts for this Billing Cycle.

oThe result is that the Period Covered explanation on the Invoice will start on the day of the month entered here, and end on the day number preceding it in the month this billed service period ends.

oThere are two situations you may want to consider when assigning the Billing Day:

1.You will not be implementing the Fully Automated Recurring Billing feature but instead will use the manually selected Auto Billing process but still want to have multiple times throughout the Month in which a specific set of Subscribers will be Invoiced in which case YOU choose to run that Billing Cycle using the manually selected Auto Billing process when it's appropriate.

2.You will be implementing the Fully Automated Recurring Billing feature so you can specify which Accounts - who are assigned to a specific Billing Cycle - will be Invoiced on which Day throughout the month and know it's a "set it and forget it" process (Fully Automated Recurring Billing).

 

HelpFilesRecurringBillingCyclesPeriodCovered

Period Covered explanation on Recurring Revenue Invoice

 

oThe system will not allow a Billing Day Number greater than 28 to be used because an Recurring Revenue related Invoice with a a Billing Day Number greater that 28 would not be generated in February - even if it should have been.

 

Note: For those Companies who are tracking Earned and Deferred Revenue, this Billing Day helps determine (along with the Sale Date, and the Month and Year of the Period To Bill chosen in the Auto Billing dialog), when the Recurring Revenue is to be Deferred, and when it will be Earned.  This is handled automatically when uses the Fully Automated Recurring Billing feature

 

Processor/Bank for Credit Card payments - Using the Drop-Down Selection List provided, Choose the Payment Gateway that will be processing the Credit Card payments from those Subscribers who are assigned to this Billing Cycle.

oIf this Billing Cycle will not require any Payment Gateway (you print the Invoices and send them to the Subscriber and they send you a Check or Credit Card information), if it has been defined as a Payment Gateway for another purpose, select the default Bank Account identified in the Company Options - General tab in the Company Options tab of the User Options Form, otherwise leave it blank.

 

Use Default Payment Processor - If the “Use Default Payment Processor” box is Checked, the Payment Gateway marked as the Default (Payment Processor) will be used for processing Credit Card payments for this Billing Cycle

oIf the “Use Default Payment Processor” box is not Checked, you must also select the Payment Gateway for processing Credit Cards payments.

oIf this Billing Cycle will not require any Payment Gateway (you print the Invoices and send them to the Subscriber and they send you a Check or Credit Card information), select the default Bank Account identified in the Company Options - General tab in the Company Options tab of the User Options Form.

 

Processor/Bank for Bank Accts payments - Using the Drop-Down Selection List provided, Choose the Payment Gateway that will be processing the EFT payments from those Subscribers who are assigned to this Billing Cycle.

oIf this Billing Cycle will not require any Payment Gateway (you print the Invoices and send them to the Subscriber and they send you a Check or Credit Card information), select the default Bank Account identified in the Company Options - General tab in the Company Options tab of the User Options Form.

 

Use the same Credit Card Processor for Bank Account - If the “Use the Same Credit Card Payment Processor” box is Checked,  the Payment Gateway selected for Credit Cards will be used for Bank Payments too.

oIf the “Use the Same Credit Card Payment Processor” box is not Checked, you must select a Payment Gateway for processing Check/ Bank Payments.

 

Active - By default this Active field with be Checked.  If you will no longer be using this Billing Cycle Code,

oRemove this Check mark and it will not be included in any billing or even shown in the application for any other use.

 

Auto Draft (Create Payment Batch when Automatic Billing is executed) - Check this box if you want your Payment Batch file record created as the recurring billing Invoices are Generated (so the manual generation of a Payment Batch file will not be required later).

oIf the Auto Draft is not Checked, the User will have to generate the Payment Batch file through the Post Auto Draft Form

oTherefore, when Auto Draft information is defined in the Subscriber Payment Methods dialog and is intended to be used to auto draft payments from the Subscribers who are assigned to this Billing Cycle, Check this box.

 

1)Automatically Billing and Drafting Recurring Revenue payments:

a)Check this "Auto Draft" box if you want a Payment Batch file Generated when the Fully Automated Recurring Billing process runs (so no manual generation would be required).

b)A Multi-Transaction Payment Batch file will be generated when the Fully Automated Recurring Billing procedure runs each day.

c)The designated Automatic Payment Gateway (i.e., InnoEPay, Authorize.net, or Forte.net), processes the Payment Transactions in the Payment Batch file each day as part of that Fully Automated Recurring Billing procedure.

d)The internal MKS EPay Service will not process any item in a Payment Batch until the individual Due Date of an Invoice.

 

2)Manually Auto Billing and Auto Drafting Recurring Revenue payments:

a)Check this "Auto Draft" box when you will be manually running the Auto Billing process for this Billing Cycle but want the internal MKS EPay Service to automatically process the Payment Transactions in the Payment Batch file on the day - whatever that day is - you run the Auto Billing process.

i.In the case, do not Check the Auto Bill box [see "Auto Bill (Create invoices when the Fully Automated Recurring Billing process is executed)" below].

b)Check this "Auto Draft" box when the Post Auto Draft Form is used to create a group of payments for a specifically selected Billing Cycle, as a result of manually running the Auto Billing process (see the Run Automatic Billing chapter for that information), so a Multi-Transaction Payment Batch file will also be generated for Credit Cards or Bank Drafts.

c)This Payment Batch file may be converted to the format required by that Payment Processor (Payment Gateway or Bank) by using the ePay Generate File dialog

i.Once generated, it must be exported to the Manual Payment Gateway used for this purpose.

ii.Later, that Payment Processor's (Payment Gateway or Bank) "results" file, if provided, must be Imported.

 

HelpFilesRecurringBillingPayBatchChart

Recurring Billing Pay Batch Chart

 

d)If this "Auto Draft" box is not Checked, a warning message will be displayed reminding the User that this Billing Cycle will be an INACTIVE DRAFTS assignment.

e)Therefore, no Payment Batch (see graphic above) for this Billing Cycle will be created during the Fully Automated Recurring Billing process (if appropriate, it may be created later using the manual Post Auto Draft Form.  

f)In addition:

i.If the Recurring Revenue records assigned this Billing Cycle (the "Auto Draft" box is not Checked) will never be used during an Post Auto Draft process (those Subscribers pay directly to your Company), no Payment Gateway(s) for Processor/Bank for Credit Cards or Bank Drafts need to be identified above (your Company's Default Bank should be entered as a "placeholder").

ii.When the Show Billing Cycles dialog is displayed from within Post Auto Drafts or Run Automatic Billing dialogs, a message on that Show Billing Cycles dialog will confirm this.

 

HelpFilesShowBillingCyclesList-Message

The automatic billing and draft process will not run if there are Billing Cycles without

Processors for Credit Card or Bank payments.  Make sure there processors are assigned

for Billing Cycles that will be used in the automatic billing and draft (processes)

 

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

 

Auto Bill (Create invoices when the Fully Automated Recurring Billing process is executed.  This Billing Cycle will not be available for manual Run Automatic Billing procedure.

a)This Auto Bill box must be Checked.when any Recurring Revenue item which has been assigned this Billing Cycle is to be Invoiced during the Fully Automatic Recurring Billing process,

b)When Auto Bill is Checked, this Billing Cycle will not be available for selection and therefore cannot be used for the manual Run Automatic Billing procedure.

i.This is a way to prevent users from running a manual Run Automatic Billing procedure for a Billing Cycle that is supposed to be billed automatically during the Fully Automatic Recurring Billing process.

ii.Unless your Company only uses the manual Run Automatic Billing process to bill your Company's Recurring Revenue, Always Check this box (it should be Checked by default) unless you have a specific reason not to do so.

c)If this Auto Bill box is not Checked and the "Auto Draft" box is Checked and the internal MKS EPay Service is running:

i.When you run the Auto Billing process for this Billing Cycle, it will automatically process the Payment Transactions in the Payment Batch file on the day it's run.

Click the HelpFilesNavigationMenuSaveIcon to record this Recurring Billing Cycle.

Any number of additional Recurring Billing Cycles may be created.

 

Note: If your Company has chosen to Charge Interest on Past Due Invoices and will be billing Recurring Revenue using any one of the multiple Billing Cycles:

1)Create Late Fee Groups for each Billing Cycle that will be used.

2)On the Accounting Receivable Section within the Edit View of the Subscribers Form,

a)Check the Charge Interest? box.

b)Select the Late Fee Group which has the rules to be applied to the Late Fees that may be assessed

 

Understanding How and Why the Auto Draft and Auto Bill options are used on the Billing Cycles Form

These two Check box fields wield amazing power!  So examine the list below to determine how your Company's needs and internal business practices can best be met:

 

1)If the Billing Cycle(s) in use are set up with both the Auto Draft and Auto Bill fields Checked, and your Company has completed the Automatic Billings Setup procedure and will be using the "Set it and Forget it" Fully Automated Recurring Billing feature, thereafter everything happens automatically.

a)Neither the Auto Billing nor the Auto Draft process is ever manually run because the Fully Automated Recurring Billing procedure creates the Invoices and processes the Payments on a daily basis as part of that process.

b)In the background, the system's "MKS ePay Service" (a Windows® Service) will process those Payments using your Company's selected and enabled Automatic Payment Gateway (i.e., InnoEPay, Authorize.net, and/or Forte.net).

 

2)If the Billing Cycle(s) in use are set up with the Auto Bill field Checked, but the Auto Draft field is NOT Checked, and your Company has completed the Automatic Billings Setup procedure, the functionality will be:

a)The manually selected Auto Billing process is not run because the Fully Automated Recurring Billing procedure will create the appropriate Invoices when appropriate.

b)However, a User must manually run the Post Auto Draft procedure - individually for every Billing Cycle (that was run to create those Invoices) - to create the required Payment Batch file(s),

i.To do so, a User must Choose the Generate Payment Batch option on the Post Auto Drafts Form each time.

c)Thereafter, in the background, the system's "MKS ePay Service" (a Windows® Service) will also process those Payments using your Company's selected and enabled Automatic Payment Gateway.

 

3)If the Billing Cycle(s) in use are set up with the Auto Bill field Not Checked, but the Auto Draft field is Checked, and your Company has completed the Automatic Billings Setup procedure, the functionality will be:

a)A User must manually Run Automatic Billing for each appropriate Billing Cycle to create Invoices (because the Auto Bill field was NOT Checked).

b)In the meantime, the Fully Automated Recurring Billing procedure may be active sand will Invoice all Billing Cycles that do have  the Auto Bill field Checked

c)Thereafter, in the background, the system's "MKS ePay Service" (a Windows® Service) will process those Payments using your Company's selected and enabled Automatic Payment Gateway.

 

4)If the Billing Cycle(s) in use have the Processor/Bank for Credit Cards payments and/or PProcessor/Bank for Bank Accts payments identified; but both the Auto Bill field and the Auto Draft field NOT Checked; and your Company has completed the Automatic Billings Setup procedure, the functionality will be:

d)A User must manually Run Automatic Billing for each appropriate Billing Cycle to create Invoices (because the Auto Bill field was NOT Checked).

e)Then, a User must manually run the Post Auto Draft procedure - individually for every Billing Cycle (that did not have the Auto Draft field checked) - to create the required Payment Batch file(s),

i.To do so, a User must Choose the Generate Payment Batch option on the Post Auto Drafts Form for each Billing Cycle (that was run in Auto Billing to create those Invoices).

ii.Then, select the Show Batch List option to open the ePay Generate File dialog in which a Generate File option allows the User to create the required Payment Batch File for the appropriate Payment Processor (Payment gateway).

c)Thereafter, in the background, the system's "MKS ePay Service" (a Windows® Service) will process those Payments using your Company's selected and enabled Automatic Payment Gateway.

 

5)If your Company will be using a Manual Payment Gateway and is not using the Fully Automated Recurring Billing procedure (the Automatic Billings Setup procedure has not been run), the functionality will be:

a)Billing Cycle(s) in use are set up with both the Auto Draft field and the Auto Bill field NOT Checked  

b)The Processor/Bank for Credit Cards payments and/or PProcessor/Bank for Bank Accts payments are identified in these Billing Cycle(s)

c)A User must manually Run Automatic Billing for each appropriate Billing Cycle to create Invoices (because the Auto Bill field was NOT Checked).

d)A User must manually run the Post Auto Draft procedure - individually for every Billing Cycle (that was run to create those Invoices) - to create the required Payments data

i.To do so, a User must Choose the Generate Payment Batch option on the Post Auto Drafts Form and then Choose the Show Batch List option to open the ePay Generate File dialog.

ii.Using the Generate File Option in that ePay Generate File dialog. the specific Export Files - required by the Bank or Payment Processor (Manual Payment Gateway) - are then created.

e)Finally, a User must Import the transaction results file from that Bank or Payment Processor.

 

6)If your Company will Not be using a Manual Payment Gateway and is not using the Fully Automated Recurring Billing procedure (the Automatic Billings Setup procedure has not been run), the functionality will be:

a)Billing Cycle(s) in use are set up with both the Auto Bill field Checked and the Auto Draft field NOT Checked  

b)No Processor/Bank for Credit Cards payments and/or PProcessor/Bank for Bank Accts payments are identified

c)A User will manually Run Automatic Billing to create Invoices.

d)A User will manually record the Payments (Receipts) as they are received from Subscribers.

 

Therefore:

Checking the Auto Bill box on the Billing Cycles Form allows those Recurring Revenue items assigned that Billing Cycle to be billed automatically (using the Fully Automated Billing process).

Not checking the Auto Bill box prevents those Recurring Revenue items from being billed automatically (using the Fully Automated Recurring Billing process).

Not checking the Auto Bill box will allow Recurring Revenue items with that Billing Cycle code and NO check to be billed manually using the Run Automatic Billing Form.

Both auto billing methods may be used at the same time, depending on your Company's specific needs.

A separate set of Billing Cycles must be created - or existing ones may be used exclusively - for the manual Run Automatic Billing procedure

Those Billing Cycles with no Check in the Auto Bill box may be billed manually anytime using the Run Automatic Billing process,

Alternately, by using the Recurring Revenue Preview report, a User may create a list of the required Invoices for those Subscribers who have a Recurring Revenue record assigned to a Billing Cycle

Therefore, a Billing Cycle record with no Check in the Auto Bill box may be used to create a list of those Invoices which require special handling (addition of a special message, insertion a new PO Number, Sending Purchase Order copy instead of an Invoice, etc.) prior to mailing.

HelpFilesNavigationMenuGrid-PrintIconList Icon - The Navigation Menu also has a List option which provides a tabular view of these Recurring Revenue Billing Cycle records.

 

HelpFilesRecurringBillingCyclesGridView

Recurring Revenue Billing Cycles Form - List View

 

Click the List Icon to display the associated Grid Data.

The columns of Grid Data may be rearranged, filtered, sorted, and exported as a PDF file and/or an Excel formatted file.

 

HelpFilesGridFind&ClearOptions

 

Find - Enter text to search for a specific record, then Click the Find option.

Clear - To remove the text to search for entry, Click the Clear option

 

HelpFilesNavigationMenuGrid-PrintIconWithOptions

Navigation Menu shown with the List Options for Export & Print

 

Click the List Icon again to Close the List View and return to the Record Editing View.

See the Grids - Print Preview - Export Data chapter for complete information on using the List View, including its Export & Print options.

 

Billing Cycles Report - The Billing Cycles Report will list who is billed within each of these Groups of Subscribers and for what type of Recurring Revenue(s) they are being billed.

 

HelpFilesBillingCycleReportDialog

Billing Cycles Dialog - Options tab