MKMS Help

Managing Recurring Revenues

This Help File Page was last Modified on 09/18/2013

Managing Recurring Revenues

This Help File Page was last Modified on 09/18/2013

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Managing Recurring Revenues

This Help File Page was last Modified on 09/18/2013

 Previous topic Next topic  

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.
•Setup 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 Dealer Billing 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.

 

□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.
•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.
•From the Main Menu Select the Maintenance Menu and then Choose Sales-Purchase Items.

HelpFilesRecurringRevenueSalesItem

Sale-Purchase Items Form - Recurring Revenue Sales 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, next you must define the Pay Groups that will be used to properly Price your Automatic Billing entries.
•From the Main Menu Select the Maintenance Menu and Choose Accounts Receivable sub-menu then Select the Pay Groups option.

HelpFilesPayGroups

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.