Annuity Billing Overview
The Annuity Billing module extends your customer, supplier, inventory, and contact management processing. It lets you create regularly recurring transactions for customers or suppliers, either as journals or as invoices / goods received vouchers.
When the system processes the charge transaction, you can also specify that it should process the corresponding payment for the charge automatically. You do this if you pay suppliers by debit order, or your customer pays you by debit order.
For customers, you can use EFTS to process the actual debit orders electronically.
You use this module if you have regular activity between you and your customers and/or suppliers. For example, if you sell maintenance agreements to customers, including contact management contracts, the Annuity Billing module lets you control these fully. The system prepares all charges automatically on their due dates, and, once you authorise the charges, posts them automatically.
Work flow of the Annuity Billing module
- You set up Annuity Billing Configurations. These are timing intervals for transactions. The system gives you virtually unlimited flexibility in setting up schedules. At the same time, you can also specify how many times transactions should recur, or you can enter a termination date.
- You can create recurring transactions as journals or as invoices:
- To create journals, you create Charge Templates. These contain a transaction type, amount, tax type, and a description.
- To create invoices or goods received vouchers, you create standard invoice or goods received voucher templates and save them in the document store. You also use these templates for contact management contracts.
- You then create customer and/or supplier contracts, which bring all these elements together:
- You link an annuity billing configuration into the contract to control its timing.
- You link a charge template, a document template, or a contract invoice template for the billing details. You assign the contract to a range of customers or suppliers, or to
individual customers and suppliers.
- The system does not assign transactions directly to customers and suppliers – there is an authorisation stage first. On the due date of a contract, which could be immediately you create the contract, the system adds each due contract to the Receivables Due and Payables Due functions. You can open these functions at any time, and delete or authorise the items in the list. Once you authorise and process, the system assigns the transactions to customers and suppliers. If you are using debit orders, the system initiates an EFTS transfer to process these electronically.
- You assign an agent as the responsible agent for each of the receivables and payables function. You can set the system up to prompt the agent when there are transactions due for processing.
- You can delete a contract whenever you wish to. However, you can also, on the annuity billing configuration, control contract termination automatically. You do this either by specifying the number of times the transaction occurs, or by specifying a termination date. When you delete annuity billing contracts, the action will be logged for auditing purposes.
Payment Run Configuration:
Accounts Receivable Billing Transaction Setup: