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Once configured the default financial transaction types (one from each classification) must be added to the financial transaction definition

Financial Transaction TypeImage RemovedFinancial Transaction TypeImage Added

Type fields

The table describes the sections of Financial Transaction Type Data Entry page, and explains how the fields in the page are used.

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Financial Transaction Definition  includes the default financial transaction types which will be used when transactions of each classification are automatically generated as well as the reasons which can be used by agents when rejecting a financial transaction.

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Definition fields

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Module Link
Area
Description
Configuration Type
Accounts ReceivableAccounts Receivable Definitions

Define the allocation principle which will be used for allocating credit to debit transactions, the credit period rules to be applied on accounts, in order for the due date of invoices to be calculated correctly as well as create the system write-off account which will be used when writing off invoices.

Mandatory
WalletsConfiguring Wallet Definitions

Define which types of wallet transactions and events occurring in the wallet should trigger the creation of a financial transactions and vice versa.

Optional
Payment GatewaysPayment Gateway providerCreate the payment gateway providers which will be used for handling payments, payment cancellations and refunds occurring in CRM.COM. For example, a payment in CRM.COM which should be paid through a PayPal account or a credit card. On setting up the provider define the payment and refund methods that should be handled by the provider.Optional

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Use financial transactions to debit or credit the customer's account. CRM.COM provides seven different classifications of financial transactions, each with its distinct characteristics and behaviour.  The classification is set on the financial transaction type which will in turn be selected when creating a new financial transaction. 
Transactions are either manually created or generated by the system. Refer to figure 1 to find out which classifications debit and credit the account as well as information on whether the transaction is created through user intervention or generated by the system. Refer to each classification section below to find out which processes generate each transaction.

Figure 1.

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Invoices

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Main Information

Number The transaction number of the payment cancellation which is automatically generated on saving the cancellation action

Reference Number: The reference number of the payment cancellation which is automatically generated on saving the cancellation action

Accounts Receivable: The Accounts Receivable that the payment cancellation is created for

Currency: The currency with which the account owner chose to be charged and pay (Set on the account)

Financial Transaction Type: Select the financial transaction type of classification payment cancellation for which the payment cancellation will be created with

Life Cycle State: The life cycle state of the payment cancellation which can be one of the following:

  • Posted: transactions are permanent, cannot be edited and affect the account's balance.
  • Pending Verification: transactions do not affect the account's balance . They are set whenever a payment with a payment method related to a Generic Payment Gateway is cancelled.

Category: The category of the payment cancellation which was set when cancelling the payment. Only categories listed as 'Allowed' on the related financial transaction type can be applied.

Amount: The amount to be deducted from the account (which is equal to the amount of the cancelled payment)

Issue Reason: The reason that the payment cancellation was created, defined when cancelling the payment

Issued On: The date that the payment cancellation was issued on

Posted On: The date that the payment cancellation was 'Posted' on, which is set by the system

Cancelled payment: Information related to the payment that was cancelled

Payment Gateway Information

Information related to the Payment Gateway Provided that processed the Payment Cancellation.
Section is only available only if the cancelled payment was previously processed by a Payment Gateway Provider and the payment cancellation type selected is related to the same Provider

Log Information

Shared Notes: Provide notes for the payment cancellation. Each time the notes are amended, the user and the date are logged.

Back Office Code: Set a code which is used by external systems to refer to a specific financial transaction. The Back Office Code is not mandatory, but if specified then it should be unique. 

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Prerequisites

Life cycle state is 'Draft'

Postconditions
InvoicesRefunds
If defined, the Due Date is validated against the account's Credit Term PeriodA warning is shown if the refund cuases the account balance to exceed the credit limit
 System Processing
  • Posted Date is set 
  • Transaction Number is generated (Until a Financial Transaction is 'Posted' only a Reference Number is available)

  • Allocations are performed

  • If the transaction is Payment, Payment Cancellation or Refund related to a Payment GatewayGateways then the life cycle state is set to "Pending Verification" and not "Posted" until is handled successfully by the Gateway

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Postconditions

The accounts receivable for the Payment is not 'Terminated'

Prerequisites

Life cycle state of the payment transaction is set to Posted

System Processing

A new financial transaction is created with a 'Payment Cancellation' classification

Life cycle state of the Payment Cancellation is set to 'Posted' . If the payment was related to a Payment GatewayGateways  then the life cycle state of the cancellation will be set to "Pending Verification" and not "Posted" until is handled successfully by the Gateway

Posted Date is set equal to current date

Transaction Number is set

Invoice Cancellation is set against the cancelled Invoice

If the payment is allocated against one or more Invoices then it is de-allocated

 

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  • Allocations are always performed Against Item when the credit Financial Transaction refers to one or more specific invoices. 

    • If the credit Financial Transaction is referring to more than one invoice, then the Allocation is applied on those invoices using FIFO

    • If the amount to be allocated to the invoice is more than the un-allocated amount then
      • If there are other transactions which are already allocated against an invoice using FIFO, then they are de-allocated and re-allocated based on 'FIFO'
      • If the amount that should be allocated is still more than the unallocated amount of the invoice, then an amount equal to the unallocated amount is allocated against that invoice, setting the Allocation Type to 'Against Item' and the remaining amount of the credit Financial Transaction is allocated using FIFO.

    • Otherwise, "If the credit Financial Transaction amount is just enough to cover the invoice  then the whole amount of the credit Financial Transaction is allocated against the invoice, setting the Allocation Type to 'Against Item'

  • Allocations are always performed on a FIFO basis if the credit Financial Transaction is not referring to specific invoices.

  • Allocations are always performed on an Against Item basis when an invoice cancellation is posted.

    • In the case of an invoice cancellation, the cancellation is always allocated against the referred invoice and the Allocation Type is set to 'Against Item'

    • If other transactions were already allocated against the invoice, then they are de-allocated and allocated again based on 'FIFO'

  • When cancelling a payment already allocated against an invoice, the cancelled payment is de-allocated and the invoice is allocated again based on 'FIFO'
  • De-allocation is performed by creating an Allocation record with a negative amount and setting the Allocation Type to 'De-allocation'
  • The de-allocated record keeps a reference to the Allocation record that resulted in its de-Allocation. 

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Making payments and refunding customers through online accounts

Payments and refunds in CRM.COM can be made using online accounts such as PayPal, Stripe or through any other payment gateway which CRM.COM can integrate with. If you are already cooperating with a payment gateway then you can set up CRM.COM to create payments and refunds which can be fed in the payment gateway and once processed you can update CRM.COM accordingly.

Integration with STRIPE on the other hand allows you to directly make payment and refund requests to stripe and once completed CRM.COM will be updated accordingly. 

In order to set up the system to support any of the 2 ways you will need to configure first financial transactions and then the Payment Gateway provider with which you work with.

  • Create the Payment and Refund Methods which will be used to distinguish payments and refunds which should be handled by the payment gateway
  • Set up your provider, either Stripe or any other and in the provider add the payment and refund methods related to them
  • Set up an account Payment Preference which is also related to the payment gateway

To conduct payments and refunds via the payment gateway:

  • Set the payment gateway related payment preference on the account and provide all the account details
  • On creating a payment financial transaction select the payment method which is related to the payment gateway and the payment preference, as defined in the account with which the payment will be done. (same applies for refunds)
  • For payments/refunds handled via Stripe the system will automatically send payment/refund requests 
  • For payments/refunds handled via any other gateway you will need to export the requests and send them to the payment gateway using the related WEB APIs

 

Communicating a payment


Payment information can be communicated by using the Communicate Payment action available through the Actions menu.
You can use Financial Transactions related communication tags (text that is automatically replaced by values specific to selected records) when creating communications for Financial Transactions. Tags are available for selection by typing '#'. 

Refer to Communications manual for a complete list of Financial Transactions tags.

 

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Dashboards make information regarding the key performance indicators of the progress of the Financial Transactions available from a single integrated view. Dashboards are made up of components such as charts and summary tables. Refer to Dashboards for information on their use and set-up.

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Dashboard components

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The report displays all the Invoices, Credit Notes and Invoices Cancellations that were posted within a specific period of time. 

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Financial Summary by accounting type report

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  • total revenue amounts grouped by transaction type, including Net, VAT, Tax and Discount amounts
  • receipts by payment type

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Financial Transactions List Report

The report displays all the financial transactions that were posted within a specific period of time. 

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Monthly recurring revenue (MRR) & Monthly recurring revenue growth (MRR Growth) report

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To execute the utility, navigate to Foundation > Utilities > Perform Mrr Calculation Runs and click on Actions > Perform MRR Calculation. Execute or schedule the run and once completed you can proceed with extracting the report.


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Printouts

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A Credit Note Details printout provides information in the selected credit note.

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Invoice details printout

An Invoice Details Printout displays information regarding a selected Invoice.

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Invoice cancellation details printout

An Invoice Cancellation Details Printout provides the information of an Invoice Cancellation.

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Payment printout

A Payment Printout provides the information of a payment.

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Financial Transactions Business Examples

 

Panel
nameblue
titlePosting refunds after bank confirmation

Scenario 1.

Company ZX would like to create refunds once a month for its customers with a negative outstanding balance. The refunds are paid out to the customers through their bank account. Once the bank makes the payment to the customer's account, the bank sends a file back to Company ZX with all the successful payments. Company ZX can the update the customer's accounts balances.

Solution

User Process
All the refunds should be created in a 'Draft' life cycle state and be sent out to the bank. Once the file with the successful payments is received from the bank, the refunds should be updated to 'Posted', (automatically) updating the balance of the account by that amount.



Panel
nameblue
titleCancelling erroneously created Invoices

Scenario 2.

Company ZX would like to cancel 'Posted' Invoices that were created by error.

Solution

Configuration
An 'Operations' user should be responsible for cancelling Invoices created by error. 'Admin' users can configure different types of 'Invoice Cancellation Classified Transactions', in order to differentiate between reasons for cancelling an Invoice. For example, Cancellation Error Invoices & Cancellation Complaint Invoices.

User Process

The user should select the Invoice to be cancelled and create a Financial Transaction of the appropriate Type.

As a result, the Invoice will be available for future reference without affecting the account's Balance. The Financial Transaction 'Invoice Cancellation Type' indicates the reason the Invoice was cancelled. More detailed information can be viewed through the Cancellation's Issue Reason.

 

 

Panel
nameblue
titleMove Payments from Suspense Account to customer accounts

Scenario 3.

Company ZX imports Payments from the bank through an import file.
If the intended account is not found the Payment will be created in Company ZX system Suspense account. Back office personnel are responsible to manually check and move the Payments to the correct customer account.

Solution

User Process

Back office operators should follow the process described below:

Company's ZX Back office personnel should access Company's ZX suspense account daily. The action "Move to Account" should be executed for each of the Payments once the intended account has been determined.

 

 

Panel
nameblue
titleCompany ZX issuing an invoice with Discount

Scenario 4.

A customer of Company ZX purchases 2 Cards. He gets a discount for both, 15% for the first one and €20 for the other one.

Solution

User Process

Create a new Financial Transaction of Type Invoice. In the Items tab add 2 lines with the following information

  1. Card 1
    • Cost: 100
    • Quantity: 1
    • Discount
      • Discount Percentage: 15%
  2. Card 2
    1. Cost: 100
    2. Quantity: 1
    3. Discount
      • Discount Amount: €20

System Calculations:

    1. Card 1
      1. Subtotal: (100-15) = 85
    2. Card 2
      1. Subtotal: 80

 

 

Panel
nameblue
titleCompany ZX - Invoice Due Dates - Fixed Date

Scenario 5a.

Company ZX wants the 15th day of the month as the Invoice 'Due Date'.

Solution

Configuration 

The Accounts Receivable Credit Rule should be set up defining the nth day to be equal to 15 after x months are equal to 1.

User Process
When posting the invoice:

  • If the user defines a date, the system either validates the date or returns an error message. e.g. In case the Date of Posting is on 20 May:
  • If the 'Due Date' is Set to 21/05 an "Invalid Due Date" message is returned from the system
  • If the 'Due Date' is Set to 16/06 an "Invalid Due Date" message is returned from the system
  • If the 'Due Date' is Set to 15/06 no error message is returned and the 'Due Date' is saved successfully

If the user leaves the 'Due Date' empty the system will set it to 15/06


Scenario 5b.

Company ZX would like to have the 'Due Date' always set 10 days after the 'Posted Date'.

Solution

Configuration
 The Accounts Receivable definition 'Credit Rule' should be set up defining X Days after the transaction's 'Posted Date' ( X = 10)

User Process 

When posting the Invoice:

If the user defines a date, the system either validates the date or returns an error message. e.g. In case the Date of Posting is on 20 May:

  • If the 'Due Date' is Set to 28/05 an "Invalid Due Date" message is returned from the system
  • If the 'Due Date' is Set to 31/05 an "Invalid Due Date" message is returned from the system
  • If the 'Due Date' is Set to 30/06 no error message is returned and the 'Due Date' is saved successfully

If the user leaves the 'Due Date' empty then the system will set it to 30/06


Scenario 5c

Even though Company ZX would like to allow agents to set the 'Due Date' at a maximum of 10 days after the 'Posted Date', it requires the System to set the 'Due Date' to 5 days after the 'Posted Date'.

Solution

Configuration

The Accounts Receivable definition 'Credit Rule' should be set up defining X Days after transaction's 'Posted Date' (X = 10)

Proximity range should be set to -5

User Process

When Posting the Invoice:

If the user defines a date, the System either validates the date or returns an error message. e.g. In case the Date of Posting is on 20 May:

  • If the 'Due Date' is Set to 28/05 no error message is returned and the 'Due Date' is saved successfully
  • If the 'Due Date' is Set to 31/05 an "Invalid Due Date" message is returned from the system
  • If the 'Due Date' is Set to 30/06 no error message is returned and the 'Due Date' is saved successfully

If the user leaves the 'Due Date' empty then the system will set it to 25/05 (the smallest allowed 'Due Date' based on the set 'Proximity Range')

 

Panel
nameblue
titleMake an online payment

Scenario 6a.

Company ZX allows its customers to make payments using an online payment gateway

Solution

Configuration 

  1. Financial Transaction Payment Methods
    Configure the payment method that will be used for making payments through the online Payment Gateway
  2. Financial Transaction Payment Type
    Configure a  payment transaction type and add the Payment method as allowed
  3. Generic Gateway Provider
    Configure the provider and select the allowed payment methods and the payment types that will trigger payments for the provider
  4. Accounts Receivable Payment Preference
    Configure an accounts receivable payment preference and relate it to payment gateway
    Select fields which will be available and/or mandatory and will be entered by the user when selecting the payment preference on an accounts receivable
    Set one of the selected fields as an identifier which will be used as a unique identifier (this could be an account number or a card number)
  5. Accounts Receivable Definition
    Add the payment preference in the allowed preferences of the account

User process

  1. Accounts Receivable
    Enable the gateway payment preference on the accounts receivable
    Provide the unique identifier (this could be an account number or a card number) and any other required information as configured in the payment preference
  2. Financial Transactions
    1. Create a transaction and select the payment type you created
    2. Select the payment method which is related to the payment gateway
    3. The system will load the identifier you have provided in the accounts receivable payment preference
    4. Select it and proceed with saving the payment

 

Note

Refer to Generic Gateway and Accounts Receivable manuals for more information

 

 

Panel
nameblue
titleFIFO Versus FIFO & Against Item Principle

FIFO Principle

In the following example, we have one Invoice which has already been allocated to a Credit Note using the FIFO model. After a second Invoice is created the first Invoice is cancelled.

  1. Invoice 1: €20
  2. Invoice 2: €10
  3. Credit Note 1: €20
No
Action
Intended Invoices
Allocations
Allocation Type
Allocation amount
Unallocated Amount
1Creation of Invoice 1N/AN/AN/A  
2Creation of Invoice 2N/AN/AN/A  
3Creation of Credit Note 1N/ACredit Note 1 allocated on Invoice 1FIFO20 
4Cancellation of Invoice 1Invoice 1

 

 

   
4a

Credit Note 1 de-allocated from Invoice 1

N/AN/ADe-allocation20 
4b

Creation of Cancellation Invoice 1

N/AInvoice 1 allocated on Cancellation Invoice 1Against Item20 
4cCredit Note 1 allocated on Invoice 2N/ACredit Note 1 allocated on Invoice 2FIFO1010

 

FIFO & Against Item Principle

In the following example, we have 3 Invoices of which the 2 first are allocated from Credit Notes that were intended for the invoices in question. The first Invoice is then cancelled.

  1. Invoice 1: €10
  2. Invoice 2: €20
  3. Invoice 3: €20
  4. Credit Note 1 : €10 (Intended Invoice: Invoice 1)
  5. Credit Note 2 : €20 (Intended Invoice: Invoice 2)
No
Action
Intended Invoice
Allocations
Allocation Type
Allocation amount
Unallocated Amount
1Creation of Invoice 1N/AN/AN/A  
2Creation of Invoice 2N/AN/AN/A  
3Creation of Invoice 3N/AN/AN/A  
4Creation of Credit Note 1Invoice 1Credit Note 1 allocated on Invoice 1FIFO and Against Item100
5Creation of Credit Note 2Invoice 2Credit Note 2 allocated on Invoice 2FIFO and Against Item200
4Cancellation of Invoice 1 

 

 

   
4a

Credit Note 1 de-allocated from Invoice 1

 N/ADe-allocation100
4b

Creation of Cancellation Invoice 1

 Invoice 1 allocated on Cancellation Invoice 1Against Item100
4cCredit Note 1 allocated on Invoice 3 Credit Note 1 allocated on Invoice 3FIFO1010

 

 

Note
titleNotes
  • If you are using a previous release, view CRM.COM Release Changes.
  • Use the Financial Transactions WEB API to create and manage Financial Transactions from an external system, such as a customer portal. View Credit Notes, Refunds, Payments and Invoices WEB APIs for a complete list of actions available through the WEB API.

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Glossary  

CRM.COM TermDefinition
Accounts ReceivableA ledger of the financial transactions carried out between a company and its customers, such as invoices and payments.
Payment GatewayAn e-commerce application service provider that authorises credit card payments for e-businesses.
StripeA build in integration of CRM.COM and Stripe payment system, which can be used  to accept online customer payments.
WalletA financial account which allows customers to use a credit balance to fund transactions within CRM.COM.
Wallet TransactionA financial event used to debit or credit the wallet
Normal Billing RunA mechanism that is used to charge customers for goods and services provided over a period of time.  Each run is usually performed on a monthly basis and issues a bill including the invoices and credit notes associated with customer subscriptions or jobs.
Rewards ParticipantThe customers who have signed up for Rewards or have been automatically selected to participate.
Quick SaleIs the process through which users are able to easily and quickly sell physical goods to customers and invoice them the same time. 
VouchersVouchers are an alternate way of paying an amount of money across CRM.COM modules. Customers can buy Vouchers and use them to perform payments within the system, while optionally, limitations can exist on the products money can be spent on. 

 

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