Invoicing for Regular Payments
Invoicing for regular payments basically consists of checking the regular payment and the frequency in months (monthly, quarterly, yearly, etc.) of a product, service or description at the time it is invoiced. The process for invoicing by regular payments searches for all products, services or products on the detail lines of invoices already issued that have a payment date that falls in the period to be invoiced, then combines them by customer and generates an invoice to each customer with these products, services or products, calculating the new regular payment according to the months due that are indicated.
To enable invoicing by due date, go to Settings --> Preferences --> Invoices tab.
- Enable the regular product-service payment box.
- The Unify Due Date to Day 1 box is used to set all due dates to the first day of each month. In some cases, administrative and bank costs can be saved. This works as follows: the regular payment is always calculated on the first day of the next month: for example, the regular monthly payment for the invoice of 02/23/07 would have a due date of 04/01/07 (instead of 03/23/07 which would be the un-unified due date). Some days are "lost," but all invoicing work is done at the beginning of each month and can be set aside until the next month.
Since the invoice detail is repeated when invoicing by regular payments, it is important to work with products and services instead of directly on the invoice (although the program allows you to do it directly). The invoicing process by regular payments gets the product price, if any. Therefore, in the case of a price increase or the switch to euros, you will only need to change the price of the product or service. If not done this way, when there are changes, you will have to change the price on each invoice once it is issued.
To indicate that a product has a payment due, enter product-service maintenance, checking the box for Product with Regular Payment and entering the frequency in months (monthly = 1, quarterly = 3, yearly = 12, etc.).
Example : A company sells air conditioning equipment and yearly service agreements.
In products-services, the air conditioning units would be added (without checking the box for regular payments) and a yearly service agreement would also be added for a product with regular payment and payment months = 12.
When selling a unit to customer 100 and adding the first invoice dated 10/01/07:
In the product detail, when the product consisting of yearly maintenance service is selected, the program automatically calculates the regular payment, based on the invoice date, and saves the month frequency on the same detail line (due date = 10/01/2007 and months = 12).
In contrast, when the air-conditioning unit is selected, the program leaves these fields blank.
You can enter description lines that are repeated on future invoices (for example, the agreement number), putting it in the description and adding the payment months and date manually.
The Due Inv. field of each detail line is automatic and is filled in by the process of invoicing for regular payments with the company and invoice number when the regular payment has been invoiced. This is used to avoid repeating invoices if the same period is requested and to know where the next regular payment has been invoiced.
To issue the invoices, go to Processes --> Invoicing for Regular Payments.
In order to select the invoices to be issued, enter the due dates, the customer codes you wish to invoice (by default "All"), the date on the invoices that will be issued, whether or not the invoices generated are to be printed, and the code for the company with previous regular payments.
The company code is used to find due dates in a company that has the data from the previous period. This is useful when a period is closed or when the currency is changed to another currency, since you will need to add a new company and the regular payments will be in invoices from the old company.
Continuing with the example, when you ask in invoicing for regular payments that invoices should be issued with a due date of 10/01/2007, then an invoice will be generated for customer 100 with the yearly service contract since it comes due during this period.
If customer 100 cancels the agreement during the year, you only have to delete the due date and the frequency in months for the invoice, so that no more invoices are issued.