Table of Contents

Billing Settings

Mitchell Paul-Soumis 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.

Billing Settings is where you control general things like if a late fee should be applied to an account, or if an account should move to a delinquent status on a Saturday. For setting the specific pace of when billing events should take place, you can set these on a per account type basis in Billing Defaults.

Billing Settings

Proration

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.

Prorate Services

Prorating Services allows you to edit customer services mid-bill cycle and adjust the pricing as the change is made.

Prorate Service Quantity

Prorating the Service Quantity 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.

Prorate Account Status Change

This proration setting allows you to make account changes on a customers account, such as cancelling a customer account, and the remaining amount will automatically be refunded to the account's payment method.

Prorate Billing Day Change

This option 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.

Round Prorated Amounts

Enabling this option will allow you to configure round dollar amounts, either to the nearest cent or dollar depending on your company's preferences. If the box is checked, the prorated amount will be rounded to the nearest dollar.

General Accounting

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 were 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 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.

If you'd like to disable Holidays rather than specific days of the week, please refer to Settings -> Delinquency Exclusions
Daily Billing

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.

Late Fee & Printed Invoice Fee Management

Managing additional fees in Sonar occur in two stages: Enabling the fees, and assigning services to the fee selection. The additional fee section contains the entire management process for late fees, while only containing the printed invoice fee. Enabling the Printed Invoice is done in Billing Defaults, or the account billing parameters.

Late Fees

Late Fees need to first be enabled by checking "Apply Late Fees". The way late fees work is that by assigning a created service as the "Late Fee Service", or using percentage based late fees, then setting a number of days after the invoice due date. After the number of days has elapsed, a new transaction will run on the customer's account, adding the amount of the late fee service (or percentage).

Applying Late Fees to a Child Invoice will apply any late fee directly to the child invoice, rather than to the parent account. For more information on parent and child accounts, please see the Child Accounts: Best Practices & How Tos article.

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