Table of Contents

Sonar Billing Definitions

Julianna Durie Updated by Julianna Durie

Below is a table that defines the billing terminology frequently used within Sonar.

Term

Definition

Accounts Receivable

An unpaid invoice.  An amount that is owed by the customer to the company that has been invoiced. This will not show invoiced amounts.

Adjustments

Includes service adjustments, account adjustments, and returned items, and can be a debit or credit on the account. This is used like a journal entry to correct a discrepancy or to enter an unusual transaction. Can also be used to reconcile an account after the closing of an accounting period.

Anniversary Day Billing

In Sonar, we use anniversary day billing to refer to billing the customer monthly, or yearly, on the day their services were initiated. This is in contrast to Fixed Day Billing, which bills on a set day.

Available Credits

As appearing under the customer’s account(s) that holds payments and credits that have not been applied to invoices. In the legacy version (V1) of Sonar, this is referred as available funds. 

Collections

A customer’s account that is still kept in your Accounts Receivable and is past the normal attempts to collect within the company and may be passed to a collection agency. If the debt is sold, the collection amount should be $0.00 out like a write-off.

Created from a Reversal

A discount that is created to balance the account when you reverse a debit. This is different from a void.

Deposit Slips

The document showing what you have presented to the bank. Once a deposit slip is created a payment cannot be removed from an account that appears on the deposit slip. The deposit slip must be deleted before the payment can be removed from an account.

Discounts

A credit applied by a service. Discounts created from the debit reversals will be used to zero the invoice and will not appear in available funds.

Financial Payments Amount

When a payment is put on an account - if it is not applied to an invoice it will sit on the account as an available fund.

Financial Payments Applied

The payment or credit applied to an invoice. This will show as a credit on the invoice.

Financial Payments Remaining

A payment or credit is applied to an account, but not a specific invoice. It may be held as an available balance or credit on the account.

Fixed Day Billing

This Billing method allows you to bill your customer on a set day every single month, or year. This is in contrast to Anniversary Day Billing, which uses variable days for each customer.

Invoiced Revenue

Invoiced revenue is the amount that has been billed to the customer. If the account has not generated an invoice, it is not invoiced revenue. See uninvoiced revenue.

Late Fees

A debit that is created when an invoice is not paid by so many days after the due date. These fees will show in the invoiced revenue once they are invoiced.

Partial Multi Month Transaction

An invoice that bills for more than a month (a quarterly or yearly invoice would be included). Sonar revenue reports display revenue per month, not the entire transaction date.

Reversed

The total of all transactions that have been reversed. Created from reversal is the total of all transactions that were created due to the reversal of another transaction. Note: only the 'Total' column is immutable - the unreversed and reversed columns can change in the future. Therefore, you should generally report from the 'Total' column if you require immutable data.

Tax

Taxes are the required amounts collected for future payment to the government entities. These appear on the customer account when a debit is added, however, it will not go into the taxes report until the debit has been invoiced.

Tax Credits

Tax credits are from refunding taxes that a debit collected. 

Undeposited Funds

Money that you have collected but have not recorded with your banking institution.

Unearned Revenue

Unearned revenue represents the situation in which a customer prepays for a good or service (like pre-pay accounts or accounts billed for 12 months). In order to balance the cash that the company receives in such a transaction, the company books the value of the goods or services that it's obligated to provide as unearned revenue, which is a liability.

Uninvoiced Revenue

Uninvoiced or accrued revenue is money your company has earned but hasn't yet billed the customer for. It goes on the balance sheet as a current asset. In accrual-basis accounting, companies are allowed to record revenue on their income statement as soon as they have done everything required to earn it.

Unreversed

Unreversed is the total of all transactions that were not created from reversals, and have not been reversed. Note: only the 'Total' column is immutable - the unreversed and reversed columns can change in the future. Therefore, you should generally report from the 'Total' column if you require immutable data.

Untaxed Debits

This is a debit that does not have any taxes added.

Example: A data service that is not taxed; when this is reversed, the tax report is not affected.

Void

Removing a recorded account item (such as a debit, credit, payment or invoice), but it is noted as VOID in the system.  Depending on if you void an entry at the transaction level vs the invoice level will determine if the amount is applied back to the account. In Sonar, adjustments cannot be voided - only reversed. 

Write-Off

Removing the amount from a customer’s account that is not expected to be paid at any time. In Sonar this can be status change or an inactive account where the account is moved back to $0.00 and will not appear on the accounts receivable.

How did we do?

How Money Flows Within Sonar

Contact