Your billing system is made easier with Ultimate Back Office™ — just take note of these important items:
Changing The Paid Thru Date
We do allow some adjustment of the Paid Thru Date during the initial migration of accounts into the software but recommend that this only be done in strict compliance with the migration instructions and not at all after migration is done.
The reason for this is that the subscriber’s billing term is based on the Paid Thru Date.
When invoices are created on the first day of each month, the billing term of that invoice is based on the end of the term of the previous invoice. Changing the Paid Thru Date changes the end of the term on the current invoice and affects all future invoices. This can cause subscriber statuses to become out of synch, which can cause the sytem to invoice subscribers that are paid up and not invoice past due subscribers. Out-of-synch statuses can also cause the reports to display inaccurate data.
Because of these potential issues, we strongly recommend that you do not manually change the Paid Thru Date on a subscriber record without contacting us first. The software is designed to automatically adjust Paid Thru Dates for you. If you feel that a Paid Thru Date on an account is not accurate, please report a trouble ticket and we will correct it for you to avoid any further issues with the account.
Note: If a subscriber signs up for a quarterly package and then after the first quarter indicates that they want to switch to monthly billing, simply change the Billing Cycle on the subscriber’s Billing Info tab from Quarterly to Monthly, and the invoice will automatically adjust.
Billing cycle changes must be made during the same month that the invoice was created. If the billing cycle is set as Quarterly and it is changed to Monthly the month after the invoice was created, it will cause severe issues with the account because the change will directly affect the end date of the billing term.
When are invoices created?
Invoices are first created when a package is added to a subscriber. Invoices are thereafter created on the first day of the month prior to the end term of the previous invoice. Upon request, we can configure your software to generate invoices on another day other than the 1st of the month.
A package is added on the 15th of June for a customer with a monthly term. The invoice is created that prorates the remaining days of the month and then covers one term. The end term of that invoice is July 31st (prorate for June 15th – June 30th and one term covering July 1st – July 31st). The next invoice is created on July 1st for the next term covering August 1st – August 31st.
When are invoices due?
The first invoice is due on the date it is created. All other Invoices are due on a date between the 1st and 28th of the month prior to the beginning of the next term as set by the you, the ISP admin.
A package is added on the 15th of June for a customer with a monthly term. And the ISP has set the invoice Due date as the 25th. The first invoice is due on the 15th of June (the creation date) and the next invoice (which is for the Aug 1st – Aug 31st term) is due on July 25th.
What is the difference between the Invoice due date and Change subscriber status to due settings?
The Invoice Due Date is the date that is printed on the customer invoice as the Due Date, while the Change subscriber status to due setting is the date during the month that you want the color icon on the subscriber account to turn yellow to indicate that they are close to due.
You have Invoice Due Date set to the 25th and the Change subscriber status to due set for the 10th. On the 10th, every customer that has a payment due this month will have a yellow status and remain yellow through the end of the subscriber paid term. If the term is July 1st – July 31st, the customer will have a green status from July 1st – July 9th, yellow from July 10th – July 31st, and if no payment is received, the status icon becomes red on August 1st.
One reason to indicate that a subscriber is “almost due” is to give time to print and send invoices prior to the due date on the invoice. You may elect to set this date to the same as the Invoice Due Date if they only do automated credit card billing.
How does the prorating work?
A prorated charge is added to an invoice each time a new package is added to the account. If you do not wish to prorate the customer, you will need to add a custom line item with a negative amount or post a credit in order to reverse the prorate charges. Another option is to have visp.net completely turn off prorating for you and you can add a setup fee to your packages.
How can I edit the invoice?
General accounting practices dictate that you don’t edit invoices and we have embraced that with the software to help keep accurate accounting for stakeholders. Of course, invoices are only one part of the subscribers’ billing record along with payments, and credits and (at times) some adjustment are helpful. We have addressed this by allowing custom line items to be added and removed from an invoice and allowing for correction by giving the ability to remove prorate charges and charges for packages not currently subscribed to. Read more about this here.
How are payments applied?
When a payment is posted to a subscriber’s account, it is applied as a line item to the subscriber’s statement. This affects the subscriber’s record in the following way: if the payment zeros out the subscriber’s statement, then the Paid Thru Date is forwarded to the end term of the subscriber’s most recent invoice. Otherwise, the Paid Thru Date will behave in the following way: if the payment is sufficient to pay all but the most recent invoice, the Paid Thru Date is forwarded to the end term of the previous invoice. If the payment is less than that required to pay the current invoice or the last invoice, no change is made in the Paid Thru Date.
How do suspensions work?
Ideally, you would want to suspend non-paid accounts before midnight on the last day of each month to avoid charges to you. As soon as the first of the month rolls around, you get charged a full month for active accounts, so you wouldn’t want to wait until after the 1st to suspend Past Due subscribers; otherwise you’d be subsidizing the costs if the users failed to pay.
After an account is set as suspended, a new invoice continues to be created on the 1st. Once the account has been suspended for 30 days, you would want to set it as Deleted in order to keep it from creating additional invoices.
If you un-suspend an account and decide that you’d like to prorate the user for unused days, this can be done by adding a line item to their invoice adjusting the amount due.
By enabling the auto actions on a subscriber’s account to Suspend – at end of term, the software will automatically suspend the account for you should it become past due.
How do late fees work?
When a subscriber is paying past the due date, you can charge an additional fee called the Re-billing Fee. To learn how to set it, please click here (under “Billing Options”).