Defining Recurring Revenue Types

Set Up: Recurring Revenue Sales Types

□	Adding Sale-Purchase Items for Recurring Revenue

•	To create a Sale-Purchase Item that defines a Recurring Revenue type, from the Main Menu Select the Maintenance Menu and Choose Sales-Purchase Items.

•	As with all Data Entry Forms in MKMS, Yellow indicates a mandatory field that must be completed for the record to be saved.

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Sale-Purchase Item Form - Edit View tab - Recurring Revenue item

•	To define a Recurring Revenue type of Sale-Purchase Item, Click the Icon on the Navigation Menu to start the Sale-Purchase Item entry.

•	Item ID - Enter a unique Item ID - the first of which must be the capital letter "R".

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

▪	All letters will be capitalized automatically.

▪	The end result is that a virtually unlimited number of Recurring Revenue types may be defined!

•	Item Type - Click the Drop-Down Selection List and Choose Sale to indicate this Recurring Revenue is (and will always be) a Sale.

•	Retail Price - Enter the Retail Price that would normally or usually be charged (typically your monthly rate) for this Recurring Revenue item.

▪	Note: This Retail Price will be inserted as the default Price when an Invoice with a Recurring Revenue item is created manually.

▪	Automatic Recurring Revenue Invoices, when created, charge the rate established in their assigned Pay Group (see Auto Bill: Defining Recurring Revenue for more information).

•	If you are using the General Ledger System: (Note that these General Ledger related fields will be highlighted in Yellow)

▪	Sale GL # - Enter the General Ledger Account Number for this type of Recurring Revenue Sale.

▪	Dept - If you have initiated the use of Departments, enter the appropriate Department number using the Drop-Down Selection List provided.

▪	Unearned Revenue GL# - Optionally - for Recurring Revenue definitions - if tracking Earned and Deferred Revenues, using the Drop-Down Selection List provided, Choose the appropriate General Ledger Account Number - the Liability Account which is defined for Deferred Revenues.

o	If an Unearned Revenue GL# is not entered when appropriate, an error message will be displayed.

HelpFilesSale-PurchaseItemNoUnearnedRecenueAccountWarning

No Unearned Revenue GL Account #

o	Once saved, if the Unearned Revenue GL# is subsequently changed, the system will make the appropriate General Journal Entry to move any existing Unearned Revenue to that newly assigned General Ledger Account Number.

o	When the Automatic Billing procedure is started, a Warning Message will be presented if a Recurring Revenue Sale-Purchase Item would be billed without a General Ledger Account Number assigned to the Unearned Revenue field of that Sale-Purchase Item.

•	AR Taxable? - Check this box if this Recurring Revenue Sale-Purchase Item is normally Taxable.

▪	When entering a Sales Invoice:

a)	If AR Taxable? is Checked, whenever this Sale-Purchase Item is entered on a Sales Invoice, the appropriate Tax Code & Tax Percentage Rate will be inserted automatically, based on the Sales Tax information entered in the Accounting Info Tab for that Subscriber.

b)	If Not Checked, whenever this Sale-Purchase Item is entered on a Sales Invoice, the Tax Code will be entered as N (Non) and the Tax Percentage Rate set set at 0%, regardless of the Sales Tax information entered in the Accounting Info Tab for that Subscriber.

•	Commission Activation Fee - Do not Check this box when defining a Recurring Revenue Item.

•	Commission Points - Enter a Point Value for those eligible for Commissions on the sale of this Recurring Revenue item

•	Other Check Boxes - There are several other Check Boxes that may, or may not be needed for this Recurring Revenue Sale-Purchase Item:

HelpFilesSalePurchaseItemCheckBoxes

▪	Non Report - Check Non Report if this item should not be included in certain Sales Analysis Reports.

▪	Show on Work Order / Service Request - Check the Show on Work Order / Service Request box if this Sale-Purchase Item has been assigned an Item Type of Sale or Both and might be needed when recording the use of Inventory and/or Materials on a Service Request.

o	The Drop-Down Selection List used to Choose the appropriate Inventory Item used on a Work Order, accessed within the Web Tech Service, will now contain only those Sale-Purchase Items which have a Check in the Show on Work Order / Service Request box.

o	The Drop-Down Selection List used to Choose the appropriate Inventory and/or Materials usage in the Inventory/Materials tab of the Service Request Form will now contain only those Sale-Purchase Items which have a Check in the Show on Work Order / Service Request box.

o	By Not Checking this box, this Sale-Purchase Item will not be included in the Drop-Down Selection List lists that are provided to a Technician working in the field using the Web Tech Service or to any User recording information within the Inventory and/or Materials tab on a Service Request Form.

The result is that any Sale-Purchase Items that are defined to identify Purchases or Sales that are unrelated to providing Service to Subscribers will be eliminated from the list - making that Selection process easier and faster, thus reducing the Drop-Down Selection List list to a manageable size, and more importantly, with a definable content.

▪	Show on Proposal - Check the Show on Proposal box if this is a Sale item which may be used on a Proposal (also see Proposal Description below).

▪	Inactive - Located within the Inventory section of the Sale-Purchase Item Form, this Check box identifies an item as Inactive and therefore no longer in use.

o	The Inactive Check box is provided because, once entered and used, a Sale-Purchase Item cannot be deleted because it has become part of the Transaction "History" maintained by the system.

o	Checking this box will remove this item from the Drop-Down Selection Listes normally used to Choose a specific Sale-Purchase Item for a Sale or Purchase.

•	Description - Enter the Description that should be printed on an Invoice for this type of Recurring Revenue.

▪	This Description may be modified as each Subscriber's Recurring Revenue Rules are defined.

▪	Enter up to 70 alpha-numeric characters: upper and lower case letters are allowed, most punctuation marks, with spaces also permitted.

•	Proposal Description - Click the Proposal Description Icon on the Navigation Menu at the top of the Sale-Purchase Items Form where a more detailed Description of this Recurring Revenue item may be entered

HelpFilesSale-PurchaseItemProposalDescriptionButton

▪	This expanded description will be shown on Proposals containing this Sale-Purchase Item.

▪	Type whatever is appropriate.

▪	Click ü OK to save the entry.

•	Price In - Enter the Price In (the actual cost or wholesale value) for this item.

▪	This is particularly important if the Sale-Purchase Item is to be used to identify Both a Purchase and a Sale, or if you will be using the Pricing Mark Up Groups to a calculate the Retail Price for this item on an Invoice or a Proposal.

▪	If this is an Inventory Item, the Price In field becomes a mandatory entry.

HelpFilesSalePurchaseItemSaleItemGroup

•	Sale Item Group - Optionally, Select a Sale Item Group using the Drop-Down Selection List provided at the top of the Sale-Purchase Item Form.

▪	If a large quantity of Sale-Purchase Items have been defined, this Sale Item Grouping feature allows you to Select the desired Sale-Purchase Item from a filtered list (based on the Sale Item Group assigned to it).

▪

The Advanced Sale Item Lookup function (accessed with Alt+F2 from within the Sale-Purchase Item Drop-Down Selection List on Sales, Proposal, Purchase Order and Purchases forms) lets you Select from a list of items limited to a specific group - thereby presenting a much shorter list from which to choose.

•	Click the Save (<) Icon to record this entry.