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Sonar Billing, Reporting & Your Accounting Software: V1

Julianna Durie Updated by Julianna Durie

Sonar Billing & Your Accounting Software

Sonar relates to your accounting software as if it is one single client. Typically, you do the following with this one client within that software:

  1. Sell services
  2. Charge and collect taxes
  3. Receive, full, partial, and advance payments via credit card, bank, checks, and cash - some payments are automatic, some are entered manually
  4. Give refunds
  5. Create invoices monthly, or as often as you would like

Within Sonar, from an accounting perspective, you will do the following for all of your customers and then combine them into one big customer, by running a daily, weekly or monthly report.

  1. Sell recurring, one-time, and grouped services
  2. Charge and collect taxes according to liability for each account or service
  3. Receive, full, partial, and advance payments via credit card, bank, checks and cash - some payments are automatic, some are entered manually
  4. Give refunds, apply one-time and expiring discounts
  5. Create invoices monthly or on a multi-month basis

You can reconcile when you choose to run reports, either daily, weekly or monthly, to ensure your accounting software will match the totals that appear within the Sonar reports. Your accounting software will provide the full picture of your company, with all of the corporate transactions included, such as reconciled sales, accounts receivable, customer deposits, undeposited funds, taxes collected, and taxes due. Sonar will show all of the transactions relating to your customers and be the authoritative system that is broken down to a per-customer level.

Sonar Reporting & Your Accounting Software

Below you will find detailed examples of Sonar reporting, for the legacy (V1) version of Sonar, as well as how you can use these reports to enter information into your accounting software. For information on general ledger codes and how you can set them up in Sonar, take a look at the General Ledger Codes: Overview article available within the knowledge base.

This article assumes a general journal for all Sonar activity or a General Sonar Customer for all invoices and payment entries into Quickbooks.

Example #1: Invoiced Revenue

Transactions by General Ledger Code > Debits

The “Total” column is the total invoiced amount in the selected period, split by GL Code.  

Example Journal Entries:

Record the Transactions by GL Code > Debits “Total” for each GL Code/ Unassigned as individual journal entries on the Sonar customer account, per general ledger code.

Date

Code

Account

Debit

Credit

Jan 31

48000

Sales Hardware

$4,810.00

Jan 31

48200

Monthly Internet Usage

$212,012.50

Jan 31

48220

Labour Revenue

$6,281.25

Jan 31

No general ledger code assigned

N/A

$34,130.24

Jan 31

N/A

Accounts Receivable

$257,233.99

Example Quickbooks Invoice:

Record the Transactions by GL Code > Debits “Total” for each GL Code/ Unassigned as individual line items on an invoice for the Sonar customer account.

Example #2: Discounts

Transactions by General Ledger Code > Discounts Applied

The “Total” column here is the total amount of credits applied to invoices that were generated from discounts in a selected period, split by GL Code. The “Total” value here will match the Credits/Payments Applied > Discounts “Total” value for the same date range.

Example Journal Entries:

Record the Transactions by GL Code > Discounts Applied “Total” amount for each GL Code/ Unassigned as individual journal entries, per general ledger code.

Date

Code

Account

Debit

Credit

Jan 31

48000

Sales Hardware

$94.45

Jan 31

48200

Monthly Internet Usage

$13,695.02

Jan 31

48220

Labour Revenue

$708.75

Jan 31

48250

Credits Applied Customer Discounts

$62.95

Jan 31

No general ledger code assigned

N/A

$333.11

Jan 31

N/A

Accounts Receivable

$14,894.28

Example Quickbooks Invoice:

Record the Transactions by GL Code > Discounts Applied “Total” for each GL Code/ Unassigned as individual line items on an invoice for the Sonar customer account.

You will have to manually adjust the taxes on the invoice to match the Taxes report as detailed below.

Example #3: Taxes

Taxes

The “Tax” column here is the total amount of taxes collected for invoices within the period, split by tax type.

Example Journal Entries:

Record the Taxes “Tax” for each tax type per tax type.  Also record “Tax Credits” for each tax type. Subtract the tax credits.

Date

Code

Account

Debit

Credit

Jan 31

State Tax Payable

$12,363.17

State Tax Payable

$867.50

Jan 31

Accounts Receivable

$11,495.67

Example Quickbooks Invoice:

Record the Taxes “Tax” for each tax type per tax type.  Also record “Tax Credits” for each tax type. Subtract the tax credits. Adjust the invoice taxes on a per tax type basis.

Example #4: Payments

Credits/Payments > Payments

The “Total” column here is the total amount of payments applied to invoices within the period, split by payment type.

Recording payments typically needs to be done on a daily basis because you need to check the daily bank records in order to create a balance.

Day 1 of the Month

Day 2 of the Month

Example Journal Entries:

Record the Credits/Payments > Payments “Total” for each Type of Payment into your Journal Entries as individual journal entries per payment type.

Date

Code

Account

Debit

Credit

Jan 1

ACH

$22,879.13

Jan 1

Credit Card

$12,410.60

Jan 1

Wire

$434.95

Jan 1

Accounts Receivable

$35,724.68

Jan 2

ACH

$325.25

Jan 2

Credit Card

$1,577.80

Jan 2

Wire

$3,098.82

Jan 2

Accounts Receivable

$5,001.87

Example Quickbooks Payments:

Record the Credits/Payments > Payments “Total” for each Type of Payment into your Quickbooks payments as individual payment entries per payment type.

Since your bank statements record deposits daily, you'll want to enter payments daily into your accounting software so that it's easier to balance at month end.

Jan 1 ACH

Jan 1 Credit Cards

Jan 1 Wire

If you have questions regarding Sonar billing and your accounting practices, feel free to send us a message at support@sonar.software and we can step through it together!

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