The first part in this series looked at using Fusebill as the master customer sub ledger for subscription management and billing in order to take advantage of Fusebill’s advanced feature set. If you missed Part 1 of this series, please read it here.
Reconciliation Steps
Fusebill provides standard reports that specify the required journal entries. The following steps should be followed:
1) Reconcile cash collected to bank records. Using the RECONCILIATION report, drill into the details and ensure that all transactions are accounted for. The CASH report details all payment activity for a given date range, indicating the payment method. (see Figure 1)
2) Generate appropriate journal entries by using the RECONCILIATION report. The RECONCILIATION report (Figure 2) shows the opening balance, credits, debits, net change, and closing balance for a specified time period. It shows the changes in each of the following ledgers:
- Cash
- Accounts Receivable
- Deferred Revenue
- Taxes Payable
- Earned Revenues
- Discounts
- Write Offs
Figure 2: Fusebill Cash Report
Figure 3: Fusebill Reconciliation Report
To provide auditability, details of each transaction can be accessed by drilling into the report details.
Alternative – Accounting System as System of Record with invoicing triggers only
Fusebill can also be used only to generate invoicing triggers which are used by a primary customer management system. This scenario arises in environments where there is a centralized CRM system for multiple product lines, and invoices need to reflect information from Fusebill and other billing systems. Fusebill generated data is used to prepare consolidated invoices using both Fusebill and non-Fusebill invoicing data. Information from Fusebill is used to populate the consolidated invoices at one of two levels:
- Summary invoice information is entered as a single line item on the consolidated invoice, without a detailed breakdown; or
- Transaction level details are provided showing individual subscription product charges and adjustments.
This can be readily supported through reports or through API integration; the volume of information required for makes this more suitable for API integration.
Process Considerations:
- Ensure Fusebill’s automated invoicing, collections and dunning features are turned off:
- Set customer billing email address to an internal address;
- Turn off dunning emails;
- Ensure no credit card information is stored with accounts;
- Record invoices as paid in Fusebill; otherwise the reports will be misleading;
- Do not use Fusebill AR Aging reports;
- Subscription changes, including pro-rating, should be applied in Fusebill directly.
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