Table of Contents
Updated by Mitchell Paul-Soumis
In this article, we'll be reviewing the Billing Settings, looking through each section of the settings and detailing what each field controls, as well as how this will affect the billing behavior of your Sonar instance.
The overall page of the Billing Settings is available by:
- Clicking on Settings
- Expanding the Billing category
- Clicking on Billing Settings
Proration in Sonar calculates the difference between the current amount paid and the new amount due through the days that have gone by in the month. The Proration check-boxes in Billing Settings will determine whether or not these boxes are checked by default when making changes on customer accounts.
- The Prorate Services checkbox allows you to edit customer services mid-bill cycle and adjust the pricing as the change is made.
- The Prorate Service Quantity checkbox allows you to add additional amounts of an identical service to a customer account while only billing them for the time left in the billing cycle.
- The Prorate Account Status Change checkbox allows you to make account changes on a customer's account, such as canceling a customer account, and the remaining bill amount will automatically be refunded to the account's payment method.
- The Prorate Billing Day Change checkbox allows you to prorate any amount due as a result of a change in billing day, made through either customer request or for company requirements - such as migrating all customers to a first of the month billing cycle.
- The Round Prorated Amounts checkbox will allow you to configure round dollar amounts, either to the nearest cent or dollar depending on your company's preferences.
The General Accounting section of the Billing Settings allows you to control the limitations of the accounting period, controlling when the instance checks due invoices for delinquency, and whether or not to use daily billing.
The accounting period being closed determines the cutoff point where you can no longer delete payments made, allowing you to reconcile the transactions in accounting software.
Accounting Period options
The Accounting Period is divided into two portions - Accounting Periods Close Date and Accounting Period Auto Close.
The Accounting Period Close Date allows you to manually set a specific date to close the accounting period, useful for situations where an outside accounting firm does the finances on a set date every month.
The Accounting Period Auto Close allows you to set a repeating time to close the accounting period, useful for an accountant on staff who frequently does the books.
Implications of closing the accounting period
Most accounting in Sonar requires that changes to existing transactions be performed by applying adjustments to rectify any errors. You cannot typically edit or delete any transactions. The exceptions to this are reversing an invoice credit and reversing a discount. When you attempt to reverse a discount transaction or reverse an invoice credit and the accounting period is not closed, the transaction will be zeroed and marked as void. This is because, in an unclosed period, these transactions have not yet affected your financial reporting.
However, if the accounting period is closed, you cannot reverse an invoice credit, and reversing a discount will create a corresponding debit transaction with the current date, rather than zeroing the transaction.
Generally speaking, it is probably a good idea to automatically close your accounting period each day. This allows you to rectify small errors made the day they are made but forces a reconciliation if they are modified on the following days.
Days to check Delinquency
Working hand in hand with the Billing Defaults described further down, un-checking these boxes will disable the delinquency check on those days, designed to prevent calls due to disconnected accounts.
Enabling Daily Billing will allow your system to run the auto-pay card or bank account daily, rather than requiring manual payment runs to be initiated. The Daily Billing will run at 12:05 AM local to your server's time zone.
Payment & Card Management
In this section of the Billing Settings, you can configure parameters related to the payment card as configured on the customer account. This section also determines the Auto-Pay attempts, minimum credit card payments, and the minimum amount on which to charge the associated credit card.
The final section of the Billing Settings page deals with the management of fees automatically charged to customers, and controlling the account status once an account is disconnected from the network.
The Disconnect Account Status dropdown allows you to set a global default for what status accounts should switch to after being disconnected. For more information on account disconnection, review our Disconnecting an Account article.
Printed Invoice Fee Service
The Printed Invoice Fee Service dropdown allows you to apply a debit to customer accounts when they choose to receive a paper invoice or statement. This service will get applied whenever an invoice for the account is bathed, and we have an article on Invoice Batching you can review for more information.
The Late Fees configuration portion of the Billing Settings page is enabled by checking the "Apply Late Fees" checkbox, located near the bottom of the page:
Once that box is checked, a number of options will appear:
- The Apply Late Fees to Child Invoices checkbox will apply only to accounts in a Parent/Child structure and will Apply Late Fees to the Child invoices in addition to Parent invoices when the payment due date is missed. For more information on Parent and Child account relationships, please see the Child Accounts: Best Practices & How Tos article.
- The Invoice and Email Late Fees Immediately checkbox determines how Late Fees are handled. If this box is unchecked Late Fees will be added as a transaction on the account and invoiced in the next service period. If checked, an invoice would be created immediately and emailed to the customer for immediate notification.Invoices for Lates Fees created with this option cannot be included in a printed invoice batch. They can only be emailed.
- The Exclude Inactive Accounts from Late Fees option will allow the system to ignore any accounts which have already been deactivated and have an amount owing.
- The Late Fee Mode dropdown allows you to select from two options for applying late fees:
- Late Fee is applied as a fixed charge, based on the amount associated with the late fee service
- Late Fee is applied as a percentage of the delinquent balance, or as the amount of the late fee service, whichever is higher
- The Late Fee Percentage field will only appear if the Late Fee Mode is set to "Late Fee is applied as a percentage of the delinquent balance, or as the amount of the late fee service, whichever is higher" and allows you to determine the percentage of the invoice amount to be charged as a late fee.
- The Late Fee Minimum Delinquency Amount allows you to set a minimum amount on an invoice prior to charging the Late Fee. this is useful if you Invoice and Email Late Fees immediately, as seen in #2, as this minimum amount matching your Late Fee service amount will prevent fees from being charged on fees.
- The Late Fee Service allows you to set a created Late Fee Service which will be applied as a debit on the customer's account when the invoice becomes past due. For more information on Services and how to create them, please review the Services: Overview article.
- The Account Types to Exclude from Late Fees dropdown allows you to select one or multiple account types which will be excluded from the late fee parameters configured here.
- The Days After Invoice Due for Late Fee Application allows you to set when the Late Fee is applied to the invoice and is separate from any billing parameters other than the due date configured as a Billing Default.