This document is designed to describe options on how to process transactions in SedonaOffice where your company is billing and collecting payments on behalf of an Alarm Company (Dealer).
This process uses a certain set of G/L Accounts and Branch to isolate accounts to be billed and process payments.
Below is a flowchart describing the process.
Setup
Creating G/L Accounts, Branch, Category, and Invoice Items are needed to isolate third-party billing and payment processing.
G/L Accounts
New G/L Accounts:
- G/L account to be used for Invoice Items (OCL) for RMR billed to subscribers.
- G/L account to be used for creating a credit memo on the Dealer Account for payments received from the Dealer’s subscriber accounts (same G/L account used for subscriber RMR).
- A/R type account for posting/processing 3 rd party dealer invoices and clearing when payments are received.
Branch
- Branch for 3rd Party Dealers and the Dealers accounts.
Category
- Category – 3 rd Party Dealer Billing
Invoice Items
- Invoice Items for invoices; set up as non-deferred (subscribers); point to OCL account.
- Invoice Item for Credit Memo to the Dealer for Payments received; point to same OCL account used for subscriber RMR.
Process
Setting up Recurring Lines
Recurring Lines are created for the items that will be billed to the Dealer and for the items that will be billed to the subaccounts.
Cycle Billing
Subaccounts
Subaccounts that are being invoiced on behalf of the Master Account are cycled through the Cycle Invoicing process within the Accounts Receivable module.
- The 3rd Party Billed accounts are cycled in a separate batch, by selecting the 3rd Party Billing Branch only.
- When posting the cycle batch, make certain to change the A/R account to the 3rd Party Billing A/R Account.
G/L Transaction for Cycle Invoices created for 3rd Party Billed Subaccounts:
Master Accounts
3 rd Party Master Accounts are billed using the same current process. If you wish to invoice these Master Accounts in a separate batch, you may do so by selecting the 3rd Party Billing Branch only.
Payment Processing - Subaccounts
As payments are received from the Subaccounts, the A/R account is cleared for the invoices being paid.
G/L Transaction for 3rd Party Subaccount Payments:
Dealer Subaccount Payments Credit Memo
A credit memo is manually created and will be posted on the Master Account for the amount of payments collected from the 3rd Party billed subaccounts. This may be done as each payment batch is posted or one credit memo at the end of the month for all payments received within the accounting period.
This credit memo is then applied to the Master Account invoice for wholesale monitoring fees. What is left over of the credit memo may then be turned into a refund check to the Master Account.
Check to Dealer for Subaccount Payments
After paying off the Master Account’s wholesale monitoring invoice, the balance of the credit will be turned into a refund check to the Master Account
