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Learn to work with Financial Transactions

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A financial transaction is an event carried out between a buyer and a seller to exchange services or physical goods for payment.  The classification of a transaction (such as Invoice, Credit Note, Payment, Refund) determines its inherent features and in turn its notation in the double-entry accounting system (whether it is debit or credit).   Transactions  Transactions are reflected in the accounts receivable (and finances) of the parties involved.

Financial transaction features

  • The transaction classifications available in the system either credit the accounts receivable (Payment, Credit Note, Invoice Cancellation and Write-off deduct funds from balance) or debit it (Invoice, Refund, and Payment Cancellation add funds to balance).

  • Transactions that are not yet posted can be rejected. Posted transactions can be canceled.

  • Posted transactions have been processed by the system, included in the account's balance and can no longer be updated.
  • Draft transactions can be created and modified before they are posted.
  • Credit financial transactions are allocated against invoices to settle an outstanding amount. Allocations are applied automatically by the system following the specified allocation principle (FIFO or Against Item &FIFO).
  • Invoices that are not considered as not collectable collectible can be written off.
  • Payments can be transferred between accounts.

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  • Categories are used to label financial transactions in a meaningful way.  Categories indicate how the transaction was handled and can be used by the business for transaction analysis purposes.
  • Payment Methods are the options available to customers for compensating sellers. The method is defined when the financial transaction is created.  If the method involves using a payment gateway (such as PayPal or Stripe) also add the method as 'supported' in the configuration of the payment gateway provider so that the system can identify the payments that it should process.
  • Refund Methods are the options available for reimbursing customers. The refund method is defined when the financial transaction is created. If the method involves using a payment gateway (such as PayPal or Stripe) also add the method as 'supported' in the configuration of the payment gateway provider  so that the system can identify the refunds that it should process. 
  • Rejection Reasons are the options available to justify a declined transaction.  Only transactions in a 'Draft' state can be rejected. 

Configure a default financial transaction type for each classification and add it to the financial transaction definition.

Financial Transaction TypeImage Added

Type fields

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

 Mandatory   Configurable

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  • The default financial transaction type used to create transactions of each classification. 
  • The rejection reasons which that agents can use.

 Financial Transaction DefinitionsImage Added

Definition fields

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

 Mandatory   Configurable

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Module Link
Area
Description
Configuration Type
Accounts ReceivableAccounts Receivable Definitions

Define the allocation principle for allocating credit to debit transactions, the credit period rules to be applied on accounts (to calculate the invoice due date) and create the system write-off account for writing off invoices.

Mandatory
WalletsConfiguring Wallet Definitions

Define the types of wallet transaction and the events that should trigger the creation of a financial transaction , and the types of financial transaction that should trigger wallet transactions and events.

Optional
Payment GatewaysPayment Gateway ProviderDefine payment gateways (e.g., PayPal account or credit card) for handling payments, payment cancellations and refunds occurring in CRM.COM. Define the payment and refund methods that the gateway should handle.Optional

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Financial transactions are used to debit or credit customer accounts. CRM.COM provides seven different transaction classifications to select from when creating a new transaction.  Transactions can be created manually or by the system.  Refer to the 'Debit and Credit Classifications' diagram below to find out which transaction classifications debit or credit the account and whether each classification is generated by the user or the system generates each classification. The following sections provide more details on the processes that generate each transaction. 

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Debit and Credit Classifications

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Invoices

Invoices are used to debit customer accounts and can be generated by system processes or manually by the user.

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The table describes the sections of the Invoice Data Entry page and explains how the fields in on the page are used.

 Mandatory   Configurable

Main Information

Number: The transaction number is automatically generated on posting the invoice. 

Reference Number: Automatically generated by creating the invoice (before posting).

Accounts Receivable (for which the invoice is created)

Type: Select most suitable for the particular invoice.

Life Cycle State (set by the system and depends on whether the user selected 'Save as Draft', 'Save', 'Reject' or ' Write off')

  • A 'Draft' transaction can be posted, rejected and edited and does not affect the balance.
  • A 'Posted' transaction is permanent, cannot be edited and affects the balance.
  • A 'Rejected' transaction cannot be edited and does not affect the balance.
  • A 'Written Off' transaction cannot be edited and affects the balance (Invoice debit and write-off credit amounts are taken into consideration).

Rejection Reason 

Category (Only 'Allowed' can be applied)

Issued On (date/time)

Posted On (set by the system)

Due On: The date on which the credit period for a 'Posted' invoice ends. If not defined, it is automatically set by the system based on the credit period allowed for the account. If defined, it is validated against the credit period set on the accountthe credit period set on the account.

Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

Items 

Individual line items in the invoice (at least one must be provided). The following aggregated amounts are calculated dynamically:

  • Net
  • Discount
  • VAT
  • Tax
  • Total
  • Outstanding (available after saving)
  • Unsettled (available after saving)

The Currency in which amounts are expressed is set on the accounts receivable.

Once the transaction is saved, a 'View Applied Tax Rates' link becomes available in the items section, which displays the tax rates that were applied to each item., a 'View Applied Tax Rates' link becomes available in the items section, which displays the tax rates that were applied to each item.

Financial Transaction Line Applied Taxes Details: A list of applied taxes for each item. Only applicable for taxes applied by a third-party taxation service that is integrated with CRM.COM. The following applied tax detail fields retrieved by the taxation service are kept in CRM.COM in XML:

  • Tax name
  • Tax code
  • Taxed amount
  • Tax rate percentage
  • Tax details (any other details sent by the taxation service)
Log Information

Shared Notes: Notes regarding the invoice can be entered here. Each time the notes are amended, the user and the date are logged.Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

 

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Credit Notes

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  • The normal billing run generates credit notes when executed for periods that were erroneously charged or regretted. 
  • The wallet funds prepaid subscriptions and redeems awards for reward participants.  
    • When a wallet is cancelled canceled the associated accounts receivable is reimbursed and wallet funds are preserved.  
    • When a credit wallet transaction is voided, debiting the wallet, a credit note can be created to credit the account

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Main Information

Number: The transaction number is automatically generated on posting the credit note.

Reference Number: Automatically generated by creating the credit note (before posting).

Accounts Receivable (for which the credit note is created)

Type: Select most suitable for the particular credit note.

Life Cycle State (set by the system and depends on whether the user selected 'Save as Draft', 'Save' or 'Reject') 

  • A 'Draft' transaction can be posted, rejected and edited and does not affect the balance.
  • A 'Posted' transaction is permanent, cannot be edited and affects the balance.
  • A 'Rejected' transaction cannot be edited and does not affect the balance.
     

Rejection Reason

Category (Only 'Allowed' can be applied)

Issued On (date/time)

Issue Reason

Posted On (set by the system)

Reason

Posted On (set by the system)

Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

Items 

Individual line items in the invoice (at least one must be provided). The following aggregated amounts are calculated dynamically:

  • Net
  • Discount
  • VAT
  • Tax
  • Total

The Currency in which amounts are expressed is set on the accounts receivable.

Once the transaction is saved, a 'View Applied Tax Rates' link becomes available in the items section, which displays the tax rates that were applied to each item.available in the items section, which displays the tax rates that were applied to each item.

Financial Transaction Line Applied Taxes Details: A list of applied taxes for each item. Only applicable for taxes applied by a third-party taxation service that is integrated with CRM.COM. The following applied tax detail fields retrieved by the taxation service are kept in CRM.COM in XML:

  • Tax name
  • Tax code
  • Taxed amount
  • Tax rate percentage
  • Tax details (any other details sent by the taxation service)
Invoices to Credit

If the allocation principle is set to 'Against Item & FIFO', invoices added here will be allocated against the credit note. If the invoices were previously settled by credit notes or payments then the particular credit notes and payments will be de-allocated.

If the allocation principle is set to FIFO, invoices added in this section are ignored.

Refer to the Allocations section for information on how CRM.COM handles allocations.

Log Information

Shared Notes: Notes regarding the credit note can be entered here. Each time the notes are amended, the user and the date are logged.Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

 

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Payments

Payments are used to credit the customer accounts. They can be generated by system processes or manually by the user.

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The table describes the sections of the Payment Data Entry page and explains how the fields in on the page are used.

 Mandatory   Configurable

Payment InformationAvailable if the specified payment method is processed by a payment gateway provider

Main Information

Number: The transaction number is automatically generated on posting the payment.

Reference Number: Automatically generated by creating the payment (before posting).

Accounts Receivable (for which the credit note is created)

The Currency of the accounts receivable (default).

Type: Select most suitable for the particular payment.

Payment Method (Only 'Allowed' can be applied)

Amount: The currency in which amounts are expressed is set on the accounts receivable.Payment Preference: The customer's preferred method of payment from the accounts receivable, which must be applied if the selected payment method is processed by a generic payment gateway. Online account or card numbers are saved in the account payment preferenceis set on the accounts receivable.

Reference Number of the payment.

The field identifier of the payment preference is displayed and used to search and retrieve the accounts receivable payment preference.

Life Cycle State (set by the system and depends on whether the user selected 'Save as Draft', 'Save' or 'Reject')

  • A 'Draft' transaction can be posted, rejected and edited and does not affect the balance.
  • A 'Posted' transaction is permanent, cannot be edited and affects the balance.
  • A 'Rejected' transaction cannot be edited and does not affect the balance.
  • A transaction 'Pending Verification' (set when a payment is created involving a generic payment gateway) does not affect the balance. 

Rejection Reason

Category (Only 'Allowed' can be applied)

Issued On (date/time)

Posted On (set by the system)

Voucher (number) available when a voucher was used to create and post the payment.

 (Payment) Received On (date) / By User / By Unit (unit of the user)

Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

Bills / Invoices To Pay

If the allocation principle is set to 'Against Item & FIFO', invoices or bills added here will be allocated against the credit notepayment. If the invoices were previously settled by credit notes or payments then the particular credit notes and payments will be de-allocated.

If the allocation principle is set to FIFO, then invoices added in this section are ignored.

Refer to the Allocations section for information on how CRM.COM handles allocations.

Payment Gateway information
Products to Pay
If the account is associated with a wallet, services added on the prepaid or normal subscription owned by the account are displayed. The user can select to settle specific or all subscription services with the payment.
Log Information

Shared Notes: Notes regarding the payment can be entered here. Each time the notes are amended, the user and the date are logged.Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

 

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Refunds

Refunds are used to return money to customers. A refund debits customer accounts.

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Instant discounts earned from reward offers can be applied though through 'back-end reduction', a process where the customer pays the regular price at the point of sale and is refunded by CRM.COM (through a payment gateway).  Funds are returned to the customer's bank or online account (e.g., PayPal).

Refer to Instant discount refunds for  for more information.


User actions that generate refunds

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 The table describes the sections of the Refund Data Entry page and explains how the fields in on the page are used.

 Mandatory   Configurable

Main Information

Number: The transaction number is automatically generated on posting the refund.

Reference Number: Automatically generated by creating the refund (before posting).

Accounts Receivable (for which the refund is created)

Type: Select most suitable for the particular refund.

Amount: The currency in which amounts are expressed is set on the accounts receivable.

Refund Method (e.g., cash or credit card)

Payment Preference: The customer's preferred method of payment from the accounts receivable, which must be applied if the selected payment method is processed by a generic payment gateway.

The field identifier of the payment preference is displayed and used to search and retrieve the accounts receivable payment preference. For example, if the customer is reimbursed through a PayPal account, then the PayPal account number (i.e. email address) is displayed.

Life Cycle State (set by the system and depends on whether the user selected 'Save as Draft', 'Save' or 'Reject')

  • A 'Draft' transaction can be posted, rejected and edited and does not affect the balance.
  • A 'Posted' transaction is permanent, cannot be edited and affects the balance.
  • A 'Rejected' transaction cannot be edited and does not affect the balance.
  • A transaction 'Pending Verification' (set when a payment is created involving a generic payment gateway) does not affect the balance. 

Category (Only 'Allowed' can be applied)

Issued On (date/time)

Issue Reason

Posted On (set by the system)

Log Information

Shared Notes: Notes regarding the refund can be entered here. Each time the notes are amended, the user and the date are logged.

Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specifiedshould be unique if specified.

Log Information

Shared Notes: Notes regarding the refund can be entered here. Each time the notes are amended, the user and the date are logged.

 

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Write-offs

Write-offs are used to cancel a bad debt and deduct the total unsettled amount of an invoice from the account balance. 

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The table describes the sections of the Write Off Data Entry page and explains how the fields in on the page are used.

 Mandatory   Configurable

Main Information

Number: The transaction number is automatically generated on posting the write-off.

Reference Number: Automatically generated by creating the write-off (before posting).

Accounts Receivable (for which the write-off is created, set by the system)

 Type: Select most suitable for the particular write-off.

Life Cycle State: Can only be 'Posted'. Transactions are permanent, cannot be edited and affect the account's balance).

Category (Only 'Allowed' can be applied)

Issued On (date/time)

Issue Reason

Posted On (set by the system)

Invoice Written Off: Information supplied by the system regarding the invoice. The write off will credit the account by the amount of the invoice.

Write-Off Account Invoices: Information supplied by the system regarding the new invoice created in the company's write-off account.

Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

Items

A single item that includes the default write-off product, as defined in the financial transaction definition. The line item's total amount is equivalent to the remaining unpaid amount of the written-off invoice, but also includes other amounts (such as Net and VAT amount), subject to VAT rates that apply to the written-off product.The Currency in which amounts are expressed is set on the accounts receivable.that apply to the written-off product.

The Currency in which amounts are expressed is set on the accounts receivable. 

Financial Transaction Line Applied Taxes Details: A list of applied taxes for each item. Only applicable for taxes applied by a third-party taxation service that is integrated with CRM.COM. The following applied tax detail fields retrieved by the taxation service are kept in CRM.COM in XML:

  • Tax name
  • Tax code
  • Taxed amount
  • Tax rate percentage
  • Tax details (any other details sent by the taxation service)
Log Information

Shared Notes: Notes regarding the write-off can be entered here. Each time the notes are amended, the user and the date are logged.Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

 

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Invoice cancellations

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Invoice cancellations credit the customer's account and can be generated by the system or the user.

System processes that generate invoice

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cancelations

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When a credit wallet transaction (which resulted in the generation of an invoice in the accounts receivable) is voided, an invoice cancellation transaction is created to cancel the debited amount.

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 Mandatory   Configurable

Individual line items in the canceled invoice.

Main Information

Number: The transaction number is automatically generated on saving the cancellation action.

Reference Number: Automatically generated on saving the cancellation action.

Accounts Receivable (for which the invoice cancellation is created)

The Currency in which amounts are expressed is set on the accounts receivable.

Type: Select most suitable for the particular invoice cancellation.

Life Cycle State: Can only be 'Posted'. Transactions are permanent, cannot be edited and affect the account's balance).

Category (Only 'Allowed' can be applied)

Issue Reason: The reason that the invoice was canceled, provided when canceling the invoice.

Issued On (date/time)

Posted On (set by the system)

Cancelled Invoice (set by the system)

Items 

Information

Number: The transaction number is automatically generated on saving the cancellation action.

Reference Number: Automatically generated on saving the cancellation action.

Accounts Receivable (for which the invoice cancellation is created)

The Currency in which amounts are expressed is set on the accounts receivable.

Type: Select most suitable for the particular invoice cancellation.

Life Cycle State: Can only be 'Posted'. Transactions are permanent, cannot be edited and affect the account's balance).

Category (Only 'Allowed' can be applied)

Issue Reason: The reason that the invoice was canceled, provided when canceling the invoice.

Issued On (date/time)

Posted On (set by the system)

Cancelled Invoice (set by the system)

Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

Items 

Individual line items in the canceled invoice.

Financial Transaction Line Applied Taxes Details: A list of applied taxes for each item. Only applicable for taxes applied by a third-party taxation service that is integrated with CRM.COM. The following applied tax detail fields retrieved by the taxation service are kept in CRM.COM in XML:

  • Tax name
  • Tax code
  • Taxed amount
  • Tax rate percentage
  • Tax details (any other details sent by the taxation service)
Log Information

Shared Notes: Notes regarding the invoice cancellation can be entered here. Each time the notes are amended, the user and the date are logged.Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

 

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Payment cancellations

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The table describes the sections of the Payment Cancellation Data Entry page and explains how the fields in on the page are used.

 Mandatory   Configurable

Main Information

Number: The transaction number is automatically generated on saving the cancellation action

Reference Number: Automatically generated on saving the cancellation action.

Accounts Receivable (for which the payment cancellation is created)

The Currency in which amounts are expressed is set on the accounts receivable.

Type: Select most suitable for the particular payment cancellation.

Life Cycle State can be one of the following:

  • A 'Posted' transaction is permanent, cannot be edited and affects the balance.
  • A transaction 'Pending Verification' (set when a payment is created involving a generic payment gateway) does not affect the balance. 

Category (Only 'Allowed' can be applied)

Amount (to be deducted from the account, equal to canceled payment)

Issue Reason: The reason that the payment was canceled, provided when canceling the invoice.

Issued On (date/time)

Posted On (set by the system)

Cancelled Payment (set by the system) 

Payment Gateway Information

Available if the payment was processed by a payment gateway provider and the payment cancellation type selected is related to the same providerBack Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

Log Information

Shared Notes: Notes regarding the payment cancellation can be entered here. Each time the notes are amended, the user and the date are logged.Back Office Code: Set a code for use by external systems to refer to a specific financial transaction. The code is not mandatory but should be unique if specified.

 

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Creating and processing financial transactions

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Classification

System Processing

Invoice

SAVE AS DRAFT

  • Life cycle state is set to 'Draft'.
  • Issued date is set.
  • Reference number is set.
  • Invoice items sub amounts and total amounts are calculated.

SAVE (POSTED)
If the invoice is created and posted at the same time: 

  • Life cycle state is set to 'Posted'.
  • Posted date is set.
  • Transaction number is set.
  • Due date is calculated and set, if not already defined by the user.
  • Un-allocated credit notes are allocated against the invoice based on the allocation principle specified in the accounts receivable definition.
  • Invoice items sub amounts and total amounts are calculated.

Credit Note

SAVE AS DRAFT

  • Life cycle state is set to 'Draft'.
  • Issued date is set.
  • Reference number is set.
  • Credit note items sub amounts and total amounts are calculated.
  • Invoice items sub amounts and total amounts are calculated.

SAVE (POSTED)
If the credit note is created and posted at the same time then:

  • Life cycle state is set to 'Posted'.
  • Posted date is set.
  • Transaction number is set.
  • Credit note is allocated against any un-allocated invoices based on the allocation principle specified in the active accounts receivable definition.
  • Invoice items sub amounts and total amounts are calculated.
Payment

SAVE AS DRAFT

  • Life cycle state is set to 'Draft'
  • Issued date is set.
  • Reference number is set.
  • Invoice items sub amounts and total amounts are calculated.

SAVE (POSTED)
If the payment is created and posted at the same time then:

  • Life cycle state is set to 'Posted'.
  • Posted date is set.
  • Transaction number is set.
  • Payment is allocated against any un-allocated invoices based on the allocation principle specified in the active accounts receivable definition.

  • Invoice items sub amounts and total amounts are calculated.

Refund

SAVE AS DRAFT

  • Life cycle state is set to 'Draft'
  • Issued date is set.
  • Reference number is set.

SAVE (POSTED)
If the refund is created and posted at the same time then:

  • Life cycle state is set to 'Posted'.
  • Posted date is set.
  • Transaction number is setnumber is set.

 

Modifying a financial transaction

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Transactions can be edited until they are posted.  Enter EDIT mode from the Actions menu.

Prerequisites

The transaction must be in a 'Draft' state.

 

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Rejecting a financial transaction

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Prerequisites

The transaction must be in a 'Draft' state.

 

Rejecting a financial transaction

 

A transaction that is not posted (still in 'Draft' state) can be rejected and not taken into account by financial processes. 

Click on REJECT 

A transaction that is not posted (still in 'Draft' state) can be rejected and not taken into account by financial processes. 

Click on REJECT from the Actions menu of the Data Entry page, selecting a reason from the drop-down list.

Prerequisites

The transaction must be in a 'Draft' state.

Postconditions

A reason for the rejection must be specified.

The associated account must not be in a 'Terminated' state.

System Processing

The life cycle state of the transaction is updated to 'Rejected'.

 

Posting a draft financial transaction

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Draft transactions can be posted at any time and thus taken into account by financial processes, by using POST from the Actions menu of the transaction's Data Entry page, selecting a reason from the drop-down list.

Prerequisites

The transaction must be in a 'Draft' state.

Postconditions

A reason for the rejection must be specified.

The associated account must not be in a 'Terminated' state.

System Processing

The life cycle state of the transaction is updated to 'Rejected'.

 

Posting a draft financial transaction

 

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'Draft' state.

PostconditionsInvoices

If a due date is defined, it is validated against the account's credit term period.

Refunds

A warning is displayed if the refund causes the account balance to exceed its credit limit.

System Processing
  • Posted date is set. 
  • Transaction number is generated (a reference number is available until 'Posted').

  • Allocations take place.

  • If the transaction is a payment, payment cancellation or refund in which a payment gateway is involved, then the life cycle state is set to 'Pending Verification' (not 'Posted') until it is handled by the gateway.

 

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cancel_inv
Canceling an invoice 

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Invoices that were posted by error can be canceled. The action results in a new transaction of classification invoice cancellation, which credits the associated account with the total amount of the invoice.

Click on CANCEL from the Actions menu of the

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invoice's Data Entry page.

Invoices

If a due date is defined, it is validated against the account's credit term period.

Refunds

A warning is displayed if the refund causes the account balance to exceed its credit limit

Prerequisites

The transaction must be in a 'DraftPosted' state.

PostconditionsThe accounts receivable for the invoice should not be in a 'Terminated' state.
System Processing
  • Posted date is set. 
  • Transaction number is generated (a reference number is available until 'Posted').

  • Allocations take place.

  • If the transaction is a payment, payment cancellation or refund in which a payment gateway is involved, then the life cycle state is set to 'Pending Verification' (not 'Posted') until it is handled by the gateway.

 

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  • A new transaction is created with an invoice cancellation classification.
  • Life cycle state of the invoice cancellation is set to 'Posted'.
  • Posted date is set equal to the current date.
  • Transaction number is set.
  • Invoice cancellation is allocated against the canceled invoice.
  • Payments or credit notes that are already allocated against the canceled invoice are de-allocated.


Anchor
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cancel_pay
Canceling a payment

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Payments that were posted by error can be canceled. The  The action results in a new transaction of classification invoice payment cancellation, which credits debits the associated account with account with the total amount of the invoicepayment.

Click on CANCEL from the Actions menu of the invoicepayment's Data Entry page.

invoice

Prerequisites

The transaction must be in a 'Posted' state.

PostconditionsThe accounts receivable for the payment should not be in a 'Terminated' state.
System Processing
  • A new transaction is created with an invoice a payment cancellation classification.
  • Life cycle state of the invoice cancellation is payment cancellation is set to 'Posted'. If a payment gateway is involved, then the life cycle state of the payment is set to 'Pending Verification' (not 'Posted') until it is handled by the gateway.
  • Posted date is set equal to the current date.
  • Transaction number is set.
  • Invoice cancellation is allocated set against the canceled invoice.Payments or credit notes that are already allocated against the canceled invoice are
  • If the payment is allocated against one or more invoices, then it is de-allocated.

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Payments that were posted by error can be canceled. The action results in a new transaction of classification payment cancellation, which debits the account with the total amount of the payment.

Click on CANCEL from the Actions menu of the payment's Data Entry page.

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Prerequisites

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The transaction must be in a 'Posted' state.

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Making a payment for specific services or bills and invoices (mostly used for prepaid subscriptions)

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Payments can be made against specific bills and invoices, or used to settle either all or specific subscription services.

 Services (Products to Pay)Bills/ Invoices

Prerequisites

  • The accounts receivable is associated with a prepaid or normal subscription
  • The accounts receivable is associated with an effective wallet
  • The payment type is included in the wallet definition as a wallet credit cause.
  • The accounts receivable is associated with a normal subscription.
System Processing

  • The payment amount is transferred to the customer wallet and allotted to the requested services.

  • The payment is allocated against the designated bill or invoice if the allocation principle is set to FIFO & Against Item. Otherwise, it is allocated using FIFO, regardless of the designated bill or invoice.

 

 

Moving a payment between accounts

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Click on MOVE TO ACCOUNT from the Actions menu of the payment's Data Entry page. Select the destination accounts receivable and click SAVE.  

Prerequisites

The payment must be in a 'Posted' state.

Postconditions

The destination accounts receivable for the payment should not be in a 'Terminated' state.

System Processing
  • A payment cancellation equivalent to the original payment is created against the initial accounts receivable, in a 'Posted' life cycle state, and referencing the original payment.
  • An identical payment (of same amount and method) is created against the destination accounts receivable, in a 'Posted' life cycle state.

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Anchor
allocation
allocation
Allocation of financial transactions

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Allocations are used by the system to settle the outstanding balance of an account, by assigning credit financial transactions (customer payments or credit notes) towards debit transactions.

Allocations follow the FIFO (First-In, First-Out) or Against Item & FIFO principle, as specified on the accounts receivable definition, and take place automatically when a financial transaction is posted.

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Making payments and refunds through online accounts

Payments and refunds can be made through online accounts such as PayPal and Stripe or other payment gateways with which CRM.COM can integrate. 

If you already use a payment gateway, CRM.COM can be configured to create payments and refunds for the gateway. Once the transactions are processed, CRM.COM must be updated accordingly.

By using Stripe, the user can make direct payment and refund requests which once completed update CRM.COM automatically. 

In either case, the system must be set up to support each method, by configuring the financial transactions module and payment gateway provider.

  • Create the payment and refund methods that will be used to distinguish the payments and refunds which should be handled by the payment gateway.
  • Set up a provider, either Stripe or other and add the associated payment and refund methods.
  • Set up the account payment preference associated to with the payment gateway.

To conduct payments and refunds through the payment gateway:

  • Set the gateway related payment preference on the account and provide account details.
  • When creating a financial transaction, select the method which is related to the payment gateway and payment preference, as defined in the account from which the transaction is effected.
  • For transactions handled through Stripe, the system will automatically send transaction requests.
  • For transaction handled through other gateways, the user will have to export the requests and send them to the gateway, using WEB APIs.

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Instant discount refunds (back-end reduction)

Rewards participants can earn awards from a purchase and use them for an instant discount, usually applied at the point of sale (POS) as a front-end reduction.

Back-end reduction can be offered through a payment gateway, where the customer pays the regular price at the POS and is refunded the discount amount by CRM.COM (through the gateway).  Funds are returned to the customer's bank or online account (e.g., PayPal).  In order to apply this option, a refund method that will trigger the refund in the gateway provider must be selected and the back-end reduction settings of the merchant must be configured.

Refer to multi-merchant rewards platform for set up instructions and for more information on back-end reduction.



Communicating a financial transaction

The Communicate action available through the Actions menu in the (invoice, payment or refund) transaction's Data Entry page can be used to convey information regarding financial transactions.

You can use tags (text that is automatically replaced by values specific to selected records) related to financial transactions when creating communications. Tags are available for selection by typing '#'. 

Refer to the Communications manual for a complete list of financial transactions tags.

 

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Financial

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Transaction Analytics

Segmenting financial transactions

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Transactions with common characteristics (e.g., which occurred in a specific period) can be grouped together.  The resulting segments can be used in system business processes, such as for notifying customers regarding payments or for simple statistical calculations. 
For more information on segmentation and how you can create financial transactions lists transaction lists refer to Segmentation.

Dashboards 

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Dashboards make information on key performance indicators 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 a list of all invoices, credit notes and invoices cancellations that were posted within a specific period of time. 

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Financial Summary by Accounting Type

The report displays revenue totals, grouped by transaction type, including net, VAT, discount and total amount without VAT, as well as receipts by payment type.

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Financial Transactions List

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

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Monthly Recurring Revenue (MRR) and MRR Growth

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Once the update is completed the option to update the report will disappear. Access and extract the report.



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Printouts

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Find examples of financial transaction printouts below:

An A Credit Note Details Printout displays information on a selected Credit Note.

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An Invoice Details Printout displays information on a selected Invoice.

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An Invoice Cancellation Details Printout displays information on a selected Invoice Cancellation.

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A Payment Details Printout displays information on a selected Payment.

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Financial Transactions Business Examples

 

Panel
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titlePosting refunds after bank confirmation

Scenario 1.

Company ZX would like to refund customer accounts with a negative balance on a monthly basis, by transferring funds to their bank accounts. Once the payments are processed, the bank sends ZX an import file with the successful payments, which it can use to update customer account balances.

Solution

User Process
Refunds should be created in a 'Draft' life cycle state and sent to the bank. Once the file is received from the bank, the successful refunds should be updated to 'Posted' and the balance of the account automatically updated.



Panel
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titleCancelling erroneously created Invoices

Scenario 2.

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

Solution

Configuration
Admin users can configure different types of invoice cancellation (classification) transactions, in order to be able to differentiate between reasons for canceling an invoice. E.g., 'Cancellation Error Invoices' and 'Cancellation Complaint Invoices'. An operations user should be responsible for canceling invoices created by error.

The user should select the invoice to be canceled and create a financial transaction of the appropriate type.  The invoice will be available for future reference without affecting the account's balance. The financial transaction type indicates the reason the invoice was canceled. More detailed information can be obtained from the cancellation issue reason.

 

 

Panel
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titleMove Payments from Suspense Account to customer accounts

Scenario 3.

Company ZX imports payments from the bank using an import file.
If the intended recipient account is not found, the payment is created in the company's suspense account. Back office personnel is responsible to manually check and move the payments to the correct customer account.

Solution

User Process

ZX back office personnel should access the suspense account on a daily basis. The MOVE TO ACCOUNT action should be executed for each payment, once the intended account is confirmed.

 

 

Panel
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titleCompany ZX issuing an invoice with Discount

Scenario 4.

A customer of Company ZX purchases two cards, granting a 15% and €20 discount, respectively.

Solution

User Process

Create a new financial transaction of type 'Invoice'. In the items tab, add two lines with the following information:

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

System Calculations:

    1. Card 1: Subtotal: (100-100*15%)  = 85
    2. Card 2: Subtotal: (100-20) = 80

 

 

Panel
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titleCompany ZX - Invoice Due Dates - Fixed Date

Scenario 5a.

Company ZX wants the 15th day of the month to be the invoice due date.

Solution

Configuration 

The accounts receivable credit rule should be set up defining the nth day (n=15), X months (X=1) after the posted date.

User Process

If the user defines a due date when posting an invoice, the system either validates the date or returns an error message. For example, assuming the date of posting is 20/05:

  • If the due date is set to 21/05 or 16/06, an 'Invalid Due Date' message is returned from the system.  
  • If the due date is set to 15/06, it is saved successfully (no error message is returned).

If the user leaves the due date empty, it is automatically set to 15/06.


Scenario 5b.

Company ZX wants to have the due date always set to 10 days after the posted date.

Solution

Configuration
The accounts receivable definition credit rule should be set up defining X days (X = 10) after the transaction's posted date.

User Process 

If the user defines a due date when posting an invoice, the system either validates the date or returns an error message. For example, assuming the date of posting is 20/05:

  • If the due date is set to 28/05 or 31/05, an 'Invalid Due Date' message is returned from the system.
  • If the due date is set to 30/06, it is saved successfully (no error message is returned).

If the user leaves the due date empty, it is automatically set to 30/06.


Scenario 5c

Company ZX requires agents to set the due date a maximum of 10 days after the posted date but 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 (X = 10) after the transaction's posted date.

Proximity range should be set to -5 (days)

User Process 

If the user defines a due date when posting an invoice, the system either validates the date or returns an error message. For example, assuming the date of posting is 20/05:

  • If the due date is set to 28/05 or 30/06, it is saved successfully (no error message is returned).
  • If the due date is set to 31/05, an 'Invalid Due Date' message is returned from the system.

If the user leaves the due date empty, it is automatically set to 25/05 (the earliest allowed due date according to the proximity range).

 

Panel
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titleMake an online payment

Scenario 6a.

Company ZX wants to enable its customers to make payments using an online payment gateway.

Solution

Configuration 

  1. Financial Transaction Payment Methods: Configure the method that will be used for making payments through the gateway.
  2. Financial Transaction Payment Type: Configure a 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 to the specific provider.
  4. Accounts Receivable Payment Preference: Configure a payment preference and relate it to the gateway. Select the fields that will be available and/or mandatory when selecting the payment preference on an accounts receivable. Set one of the selected fields as a unique identifier (this could be an account or 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. Provide the unique identifier and any other required information, as configured in the payment preference
  2. Financial Transactions:
    1. Create a transaction and select the configured payment type that was added as allowed.
    2. Select the payment method that is related to the payment gateway.
      The system will load the identifier provided in the accounts receivable payment preference.
    3. Select the identifier (i.e. the card number) and save the payment.

 

Note

Refer to Generic Gateways and Accounts Receivable manuals for more information.

 

 

Panel
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titleFIFO Versus FIFO & Against Item Principle

FIFO Principle

In the following example, one invoice has already been allocated to a credit note using the FIFO principle. Once a second invoice is created, the first invoice is canceled.

  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

 

 

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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

There are three invoices in the following example. The first two are allocated from credit notes that were intended for the invoices. The first invoice is then canceled.

  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 

 

 

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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 WEB API to create and manage financial transactions from an external system, such as a customer portal. Refer to credit note, refund, payment, and invoice WEB APIs for a comprehensive list of available actions.

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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 GatewayA service provided by a third-party system that authorizes credit card or direct payment processing for e-business.
StripeA merchant payment gateway for processing online payments.
WalletA customer account whose credit balance is used to fund transactions within CRM.COM. 
Wallet TransactionA financial transaction that debits or credits the wallet.
Normal Billing RunA process 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 ParticipantA customer who can be awarded offers provided through the rewards program.
Quick SaleA process used to swiftly sell physical goods to customers - generates invoices to charge the customer's account.
VoucherAn alternate form of payment across CRM.COM modules.  Customers buy vouchers and use them for payments within the system.

 

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