Orax SDI Cloud Reference

Billing and customer statements

Once you're selling services or products you need to manage billing and cash receipts. The Orax SDI has a fully features accounting module able to deal with all the financial needs of a large business. Billing is a key component of sales and accounting, yet can be managed independently of the ledger and accounting system. This means that you don't have to do your financials in Orax SDI, but just manage customer accounts.

If you plan to send statements and manage customer accounts, please refer to this page for more information: Accounts receivable (customers).

Overview
Billing concerns creating Sales Invoices, sending customer statements at month-end and recording bank receipts, discounts, credits and journal adjustments. In order to do start with this process, each customer has to be setup with payment terms. This is done on the customer account.

Billing starts with a Sales Invoice. A Sales Invoice is a list of items (products/inventory) and/or services sold to a specific customer account. Setup the Services and Products in the Company setup menu.

Sales Invoices
Sales Invoices can be created directly or processed from an approved Sales Quotation or Sales Order. A Sales Order can be processed to several Sales Invoices if the delivery of the Order is split over time or deliveries. In this case, process the Sales Order to an Invoice and then change the quantities on the Invoice as needed. The Sales Order will retain the fulfilment overview. You can also use the applicable fulfilment report in the Orders tab for detail related to pending sales orders.

Sales Credits
Inevitably you'll need to credit some of your sales invoices (in full or partial). To do this, process the Sales Invoice to a Sales Credit and change the quantities. This will ensure the Sales Invoice and Sales Credit are linked to each other. If you created the Sales Credit directly, link them in the Process button manually.

Cash
Sales Invoices and Credits are the source documents for customer billing. These show up on the statements and are posted to the customer accounts. When customers pay their accounts, or you refund money, it has to be recorded in bank account transactions. For more detail on managing bank accounts and reconciliation, see Banking and cashbooks.

Discounts and Adjustments
During bank receipt capturing, discounts can be added to a receipt directly. It is also possible to add journal adjustments to customer accounts (eg. discount, foreign currency profit or loss, interest, etc). Use the applicable options in the customer account GL or Financial tab.

Customer Ageing
Always ensure that documents or transactions that are related to each other are correctly linked. If you have linking issues, the customer account ageing (used on statements) will be incorrect. The ageing periods (30days, 60days, etc) are compiled using links between transactions. Eg. if you link a receipt to an invoice that is 60days old, that receipt will be allocated to the 60days period, otherwise it may be linked to the incorrect period.

Customer Interest
When customer accounts violate their payment terms, you are able to load interest to their accounts as an invoice or journal entry using the applicable option in the Debtors tab in the Ledgers screen.

Customer Statements
There are several types of statements on the system. These can be selected for the entire company (default) as well as for each customer. Some statements relate to offshore customers who use different Currencies and some address specific customer needs. It is also possible to have a customer statement developed, should the need arise.

Debugging Ageing issues
When ageing is incorrect it is because of a linking issue between documents and cash or journal adjustments. In the next page we'll look at the tools to debug ageing issues.