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

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Type fields

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

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

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Definition fields

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Debit and Credit Classifications

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Invoices

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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 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.

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.

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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 a payment cancellation classification.
  • Life cycle state of the 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 to the current date.
  • Transaction number is set.
  • Invoice cancellation is set against the canceled invoice.
  • If the payment is allocated against one or more invoices, then it is de-allocated.

 

 

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.

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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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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 component displays the average product revenue from various products in a specific period, in a bar chart, grouped by product. If a date range is not supplied, the component uses data from the current month. The products can be selected through the settings () accessed from the top right corner of the component.  Only 'Posted' transactions are used and taxes are not included in calculations. 

 

  • Product revenue = total invoiced amount - total credited amount - total invoice cancellation amount
  • Average product revenue =  total product revenue in a specific period/number of distinct accounts receivable resulting in the revenue (through financial transactions)

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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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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
nameblue
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
nameblue
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
nameblue
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
nameblue
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
nameblue
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
nameblue
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
nameblue
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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