Receivables

Accounts Receivable

1.) Introduction

Welcome

Welcome to the Receivables course!

You will be taken through a typical customer's Receivables workflow. From creating invoices to receiving money, you'll learn how our customers use Bill.com to receive money quicker.

2.) Accounts Receivable Workflow

Learning Objective

After completing this course, you will be able to:

  • Construct the Accounts Receivable Workflow

Accounts Receivable Workflow

Bill.com not only pays bills, but also allows customers to receive payments from their clients.

Imagine you are working as an Accounts Receivable Clerk at a small business. Your job is to create invoices, send them out to clients, charge payments, track payments, and send reminders to customers.

Below is a typical workflow for many businesses processing receivables:

3.) Creating an Invoice

Learning Objective

After completing this course, you will be able to:

  • Explain the purpose of Receivables Invoices
  • Create an Invoice
  • Identify the different ways Bill.com customers can send invoices to their clients

Introduction

The Receivables module is for businesses who invoice their clients.

You might be familiar with this type of billing as a payer. For example, your cell phone company sends monthly bills. You pay within 15 days to avoid fees and termination of service.

In the next slide, you'll see how to create an invoice in Bill.com.

Creating an Invoice

Imagine you are an Account Receivable Clerk and need to enter invoices in Bill.com.

The first invoice you need to enter is for the Customer: Acme, Inc. for $500

Log into your test account to create the invoice.

Go to Receivables > Invoices > Click New

 

 

 

 

 

 

 

 

  • Create a new customer: Acme, Inc.
  • Invoice# INV-1
  • Invoice Date: 11/1/16
  • Due Date: 12/1/16
  • Amount: $500
  • When creating a new Item, also create a new account to link to it. Create a new Item: Consulting and a new Account: Consulting Income, Account# 2000, Type: Income
  • Description: Consulting Services
  • Quantity: 1
  • Price: $500
  • Send Via: Make sure there is a check on "Email" and "Now" is selected.
    • There is an option to email the invoice later or even print/mail.
    • If the print/mail option is selected, Bill.com will print it and mail it out via US mail.
    • You can also print the invoice and mail it yourself.
  • Click Save

 

 

 

Since you don't have any customers to choose from, you'll need to create a new customer by clicking on "Add New" in the Customer field dropdown.

Sending an Invoice

After you save the invoice, you'll be brought to a page to email the invoice to the customer.

  • For the "To:" field, add your own Bill.com email but add "+1" after the last name and before the "@" symbol (ex: [email protected])
  • Click Send

After sending the invoice, you will see a confirmation page.

Email Sent

When an invoice is sent via email, the client will receive an email to be able to pay online.

Knowledge Check 1

  • Text Message
  • Email
What is one way Bill.com customers can send invoices to their clients?

Knowledge Check 2

  • When an invoice email is sent, the payer can pay online

4.) Portal Account

Learning Objective

After completing this course, you will be able to:

  • Explain what a Portal Account is
  • Create a Portal Account
  • Explain the three ways a Portal Account can pay an invoice
  • Discuss the benefits of the Branded Website Address

Portal Account: Paying an Invoice through Bill.com

When an invoice is sent to a customer through Bill.com, the customer has an option to pay via Bill.com.

This doesn't mean the customer needs to sign up for a paid version of Bill.com. There is an option for customers to open a free Bill.com account in order to pay the invoice or any future invoices.

This type of account is called a Portal Account. It allows a customer to login, view invoices, enter a payment method, and pay invoices. It's a convenient way for both parties (customer and vendor) to pay and receive money quickly and securely. 

In the next slide, you will see how to use the Portal Account. To open up the Portal Account, check your email for INV-1.

Once you find it, click on "Pay Invoice Electronically". Create a password and then you'll be able to see the invoice in the Portal Account.

Payments

Once a payment is processed in the Portal Account, the Bill.com customer will receive the money in their bank account and the Invoice will be marked with the status: "Paid". We will talk about when the payment gets deposited later on.

Now you know the basics of the workflow (create an invoice, send it, the customer pays it, etc.) but there are a few configurations that need to be set before payments are processed.

Accept Payments Online

Before charging customers or customers paying invoices, a Bill.com customer needs to setup at least one way to receive payments.

  • ePayment (Bank Account)
  • PayPal
  • Credit Card

The most popular is ePayment (Bank Account). This means a Bill.com customer can charge or the payer can pay using a bank account and the money will be deposited into the payee's bank account.

For the ePayment setup, Bill.com customers needs to complete an online application with business information.

Bill.com will review and approve the application within 2 business days.

For PayPal, Bill.com customers can connect their PayPal account to receive money from payers using their own PayPal account.

For Credit Card, Bill.com using a third party named Vantage/PayTrace to process credit card payment. Bill.com customers need to create a Vantage PayTrace account in order to receive money. Additional fees apply.

Once one payment method is setup, Bill.com customers can receive money with respect to the payment method they setup.

Branded Website Address

Each Bill.com account which uses the Receivables module has a unique website address for payees to go to, login, and pay. You can view the URL on an invoice.

Go to Invoice# INV-1. Toward the bottom of the invoice, you'll see:

"To pay online, go to..."

Customize the Branded Website Address

By default, the URL is made up of a series of letters and numbers.  A Bill.com Customer may edit the URL to create something that’s more familiar to their clients, especially if using their business name.

To customize the URL, go to:

Gear Icon > Settings > under Receivables, click on Branded Website Address

In the field next to "Save", you can enter the business name.

Enter your full name.

There needs to be at least 8 characters and contain only alpha-numeric characters.

Click Save.

After clicking save, you will see the update.

If you go back to Invoice# INV-1, you will see the URL updated with the change you made.

Knowledge Check 1

  • Portal Account
  • Non-Portal Account
  • Accounts Receivable Account
  • Accounts Payable Account
What type of account is used for a payer to pay their invoices with a free Portal account?

Knowledge Check 2

  • Square
  • Bank Account
Which option to receive money from customers does Bill.com provide?

Knowledge Check 3

Find and click on the branded website address on the invoice below

Knowledge Check 4

  • It's possible to customize the Branded Website Address

5.) Charging a Customer

Learning Objective

After completing this course, you will be able to:

  • Explain how to charge a client through bank account
  • Examine why Bill.com customers need to get signed authorization from their customers

Introduction

You have seen how a Portal Account (payer) can pay an invoice, but what if the Bill.com customer (payee) has the customer's bank account information and wants to manually charge their customer?

We will now review how a Bill.com customer can charge for an invoice for one of their customers.

Getting Signed Authorization from Customers

Go to the customer: Acme, Inc.

Receivables > Customers > click on Acme, Inc.

On the profile page, you'll see a window assisting you setup a bank account or credit card for the customer.

 

 

Let's say you do have the customer's bank account information. Click on "Payments Setup".

Before entering any bank account information, Bill.com customers are required to obtain signed authorization from their customers to charge their bank account.

Please read the below article before clicking Next

Getting signed authorization from customers

Bank Account Setup

Now it's time to enter the bank account.

Click on Save & Add Bank Account then click on Add Account.

  • All required fields need to be entered. Use the image to the left to enter all required information
  • Check on "My customer has agreed to the Bill Payment Terms of Service".
  • Click Save
  • Click on Back to Customer

Initial Setup

Let's imagine the signed authorization is complete.

Coming back to the Payments Setup page:

  • Click on Authorized
  • If you want to setup Auto Charge, click on "Automatically Pay Bills". We will talk about Auto Charge later. (The Auto Charge option disabled because there is no bank account or credit card entered yet).
  • A maximum payment amount must be set (per invoice)
  • If there are multiple bank accounts/credit cards, you can choose from which bank account or credit card should be used when the Auto Charge occurs.
  • You must set a certain number of business days before or after the invoice date the Auto Charge occurs.

Making a Payment

Now it's time to charge the customer and make a payment.

For Acme, Inc. INV-1 should be unpaid.

Go to the invoice and in the Summary window, hover over Invoice Actions, and click "Enter Payment".

  • Make sure the "Charge Customer" option is selected
  • Select INV-1
  • The "Choose Account" option should already be selected by default
  • You can enter 11/1/16 for the Pay On Date
  • Click Submit

 

The next page will present you a confirmation page. Click Done.

Since you picked the option to email the receipt, below is what the client will see.

Knowledge Check 1

In order to be compliant with the rules and regulations set forth by , your company is required to obtain signed authorization from your to charge their bank account.

Knowledge Check 2

  • It's not possible to email a receipt of a payment to the customer

6.) Auto Charge

Learning Objectives

After completing this course, you will be able to:

  • Explain what Auto Charge does
  • Setup Auto Charge for a client
  • Describe how a Portal Account can setup Auto Charge
  • Identify 5 exceptions that influence Auto Charge
  • Explain why a Bill.com customer would want to adjust the “Allow Customers to Change Auto Pay” feature

Introduction

In previous sections, we covered how a Portal Account can pay an invoice and how the Bill.com customer can charge their own client.

Bill.com offers a way to charge a client automatically by enabling Auto Charge. (You'll also hear people call it Auto Pay)

Auto Pay is the easiest way to get paid on time, every time, because unpaid invoices get paid in full on their due date (dependent on the maximum payment amount), directly from your client's bank account or credit card. There are a couple different ways to set up Auto Pay which we will review in the next slides.

Setup for a Bill.com Customer

Let's briefly talk about some of the option below:

  • Automatically Pay Bills: The system will automatically charge the customer for unpaid invoices on the Due Date or another setting the customer sets.
  • Maximum Payment Amount: Sets a limit on how much the system will automatically charge an individual invoice. If the Maximum Payment Amount is $1,000 and an unpaid Invoice is for $2,000, the system will only charge $1,000 and the invoice will be partially paid with a remaining balance of $1,000.

To setup Auto Charge, go to:

Receivables > Customers > click on Acme, Inc. Click "Payments Setup".

  • Put a check on "Automatically Pay Bills"
  • Maximum Payment Amount: $1,000
  • Leave the rest of the fields as default.
  • Click Save

Setup for a Customer (Portal Account)

A Bill.com customer’s client may wish to set up Auto Pay directly through their portal account.  This will enable recurring payments so that they don’t risk forgetting to pay an invoice.

To view the setup, go to the Portal Account. You can get the URL from an invoice (toward the bottom).

Once you logged into the Portal, you can enabled or disabled Auto Pay by going to:

Gear Icon > Click on Auto Pay On

  • Click Edit
  • As a Portal Account user, you can enable or disable Auto Pay and other features.
  • Uncheck "Automatically Pay Bill"
  • Click Save

Once the Auto Pay feature is turned off and saved, log out of the Portal Account and log into the regular Bill.com account.

Check the customer profile page for Acme, Inc. and see if the "Automatically Pay Bill" feature is turned off. It should be since you disabled it in the Portal Account.

Auto Charging Individual Invoices

There are certain situations which a customer is setup for Auto Charge, but the Bill.com customer doesn't want a specific invoice to Auto Charge. If this is the case, the system has the flexibility to deal with this scenario.

Before viewing the option, turn on Auto Charge for Acme, Inc. Then following the steps below.

Create a new invoice for Acme, Inc. using Invoice# INV-3. Use an amount and an available Item.

Toward the bottom on the invoice, you will see an option to Automatically Pay the bill.

Check the option and click Save.

You can always disable the feature by editing the invoice.

 

The feature will be checked by default if the customer profile page has Auto Charge on.

Allow Customers to Change Auto Pay

There are some businesses that need to restrict their customer's ability to disable Auto Pay in their Portal Account.

This may be because there is a monthly subscription that occurs every month and if customers disable the Auto Pay feature, the invoice isn't paid and the business needs to track down payment.

Gear Icon > Settings > under Receivables, click on Preferences > click Edit

 

 

 

 

You'll see the option to allow or not allow customers to change Auto Pay.

This is a global setting that affects all customers.

Important Considerations and Exceptions

Below are a list of important considerations and exceptions that impact how Auto Charge works.

  • If the due date is a holiday or weekend, we'll initiate the payment on the next business day.
  • If you have selected a "Pay on" date, the payment will be pulled when you have specified ("x" days before/after the invoice due date).
  • Automatic payments will be made on unpaid invoices with no previous payments (including voided or cancelled payments), up to the maximum amount. If a customer has multiple unpaid invoices due (or past due), the payment for those invoices will be grouped together into one charge. We will send one summary email, rather than individual emails for each invoice. *Credits are considered a payment, and auto-pay will not kick in.*
  • 3 business days before an invoice's pay date (either the due date, or the number of days before/after the due date as specified in the Auto Payments settings), we'll email the customer a reminder and the payment will be scheduled. They need to make sure they have enough money in their bank account (or credit limit on their credit card) to pay, or they should cancel the payment.
  • If an invoice is past due when Auto Pay is enabled, or when the invoice is created, the payment will be withdrawn from your customer's bank account on the next business day.

Knowledge Check 1

  • Accounts Payable Account
  • Bill.com Customer or Portal Account
  • Basic Receivables Account
Who can enable or disable Auto Charge or Auto Pay?

Knowledge Check 2

  • Bill.com customers can automatically pay their bills.
  • Bill.com customers can automatically process invoices.
  • Bill.com customers can setup Auto Charge so invoices get paid in full (depending on max payment amount) on their due date, directly from your customer's bank account or credit card.
  • Bill.com customers can have their Bill.com subscription automatically charged every month.
What are the benefits of Auto Charge?

Knowledge Check 3

  • Receivables > Customers > click on the Customer name
  • Gear Icon > Auto Pay Off
  • Gear Icon > Settings > under Receivables, click on Payments Setup
  • Receivables > Customers > click on the Customer name > click Payments Setup
Where do you go to enable Auto Charge in a Bill.com customer's perspective (not a Portal Account)?

Knowledge Check 4

  • If you have Auto Charge for a customer, you can't disable Auto Charge at the Invoice level
  • Portal Accounts can enable or disable Auto Pay if it's allowed by the Bill.com customer

Knowledge Check 5

Automatic payments will be made on invoices with no previous payments (including voided or cancelled payments), up to the amount. If a customer has multiple unpaid invoices due (or past due), the payment for those invoices will be grouped together into one charge. We will send summary email, rather than individual emails for each invoice. *Credits are considered a payment, and auto-pay will not kick in.*

Knowledge Check 6

business days an invoice's pay date (either the due date, or the number of days before/after the due date as specified in the Auto Payments settings), we'll email the customer a reminder and the payment will be . They need to make sure they have enough money in their bank account (or credit limit on their credit card) to pay, or they should the payment.

Knowledge Check 7

If an invoice is when Auto Pay is , or when the invoice is created, the payment will be withdrawn from your customer's bank account on the business day.

7.) Entering a Manual Payment

Learning Objectives

After completing this course, you will be able to:

  • Create a manual payment
  • Explain why the manual payment feature would be used in Bill.com

Introduction

Even though Bill.com processes payments several different ways, if a Bill.com customer receives a payment from a client outside of Bill.com’s payment processing system, there is a way to record the payment in Bill.com without causing the client to be billed twice.

Recording a Manual Payment

In order to record a manual payment, create a test invoice.

When you have saved the invoice, go to back to the invoice. In the Summary window, hover over Invoice Actions and click on "Enter Payment".

  • Select "Record Manual Payment"
  • You can select the different type of payment type you received from the customer. In this case, let's imagine it's a check
  • The Reference Number can be the check #

 

  • Make sure to double check you are selecting the correct invoice and then click submit
  • Verify the payment is applied to the correct invoice

Knowledge Check 1

What selection do you need to make to ensure you are recording a manual payment? Click on the correct area.

Knowledge Check 2

  • The only way to record a payment is to charge the client
  • Their clients may send them payments outside Bill.com
Why would a Bill.com customer enter a manual payment?

8.) Invoice Templates

Learning Objective

After completing this course, you will be able to:

  • Customize an invoice template
  • Explain the benefits of customizing invoice templates

Introduction

Bill.com offers many different ways to customize how invoices look and feel.

In the next slide, you'll see how easy it is to create many different invoice templates.

Create a New Invoice Template

To create a new invoice template, go to:

Gear Icon > Settings > under Receivables, click on Invoice Templates > click New

You will see there are some required fields like Name, Style, and Title. All other fields are optional and can be renamed.

For example, let's say you don't use "Account Number" in your company but alternatively use "Company Number". You can rename that field very easily by typing in "Company Number".

Also, if you don't want the field: P.O. Box Number, you can uncheck it and it will not show up in the invoice.

Now, let's create a new invoice template.

Use the information below to create a new invoice template.

  • Name: Test1
  • Style: Clean
  • Title: INVOICE1
  • Uncheck "Bill To:"
  • Uncheck "Ship To:"
  • Uncheck "P.O. Number"
  • Uncheck "Sales Rep"
  • Rename Account Number to "Company Number"
  • Click Save

Create Invoice

Now let's create a new invoice and see how the invoice appears given our new invoice template.

  • Customer: Acme, Inc.
  • Invoice#: INV-2
  • Invoice Date: 11/8/16
  • Due Date: 12/8/16

 

  • Invoice Template: Test 1
  • Item: Consulting
  • Description: Consulting Services
  • Quantity: 1
  • Price: $200
  • Click Save and Send
  • Click Back to Invoice to see the invoice

Notice how the invoice has all the fields we selected and none of the fields we unselected.

But you'll notice that "Company Number" isn't there. Why?

It is because we never entered an Account Number in the customer profile. To do this, go to:

Receivables > Customers > click on Acme, Inc. and Edit. Enter 512345 in the Account Number field and click Save.

Now go to Invoice# INV-2 and see if "Company Number" appears on the invoice.

Knowledge Check 1

  • Account Number, Sales Rep, Due Date
  • Amount Due, Invoice Date, Due Date
Check the following fields that can be removed from the Invoice Template.

Knowledge Check 2

If you created a new Invoice Template and want to use it, where do you go to select the new Invoice Template?

9.) Email Templates

Learning Objective

After completing this course, you will be able to:

  • Customize an email template
  • Explain the benefits of customizing email templates

Email Templates

Bill.com customers can also customize the email that goes out when an invoice is sent to customers.

Go to:

Gear Icon > Settings > under Receivables, click on Email Templates, click Edit

  • You can customize each field.
  • Most customers format the email to their own company language/policy

 

 

 

 

 

 

 

A Bill.com customer may prefer to use the greeting “Hello” rather than “Hi.”

Go ahead and replace "Hi" with "Hello" in the body section and click Save.

Create Invoice

Let's create an invoice using Invoice# INV-3. Use the Customer: Acme, Inc. and input any data to create the invoice.

After you click Save, you'll be brought to a page to send the invoice. Check to see in the body of the email if the greeting is "Hello" instead of "Hi".

If you check your email, you'll even see the email does have "Hello" instead of "Hi".

Knowledge Check 1

  • Yes
  • No
Are you able to change the body of the email template?

10.) Auto Reminders

Learning Objectives

After completing this course, you will be able to:

  • Describe the purpose of Reminders

Introduction

In Bill.com, it's easy to activate auto reminders to let customers or clients know when an invoice is either past due or is coming up as due. Customers have the option to activate up to three auto reminders and set them up to go out when at the time most appropriate.

Setup

Let's look at how to activate and customize Auto Reminders.

  1. Hover over the gear icon , and select Settings
  2. Under the Receivables section, click on Auto Reminders
  3. At the top, click Edit (by default, the first auto reminder will be selected)
  4. Edit the following:
    • Enable the reminder by checking the box
    • Input 30 days after the invoice is due
    • For the "From" field, choose your name
    • Use the existing Subject line
    • Replace the greeting ("Hi") with "Hello"
    • On the right hand side, there are options in the drop down to enter coding that will allow the invoice to specify the specifics relating to that customer and their invoices.
  5. Click Save

Additional Setup

There are two other auto reminders that can be setup.

This means the second reminder can be sent 60 days after the invoice is due and the third reminder can be sent 90 days after invoice. This way you can automate reminders and not have to track down which invoices are overdue and communicate with the customer in order to remind the clients that payment is due.

Knowledge Check 1

  • To reminder themselves to send out email reminders
  • To remind their customers that payment is due
Why would a Bill.com customer want to use Auto Reminders

Knowledge Check 2

  • Receivables > Customers > click on the Customer Name and edit the profile
  • Gear Icon > Settings > Receivables > Auto Reminders
  • Gear Icon > Settings > Receivables > Preferences
  • Gear Icon > Settings > under Your Company, click on Profile
Where do you go to enable or disable Auto Reminders?

11.) Recurring Invoices

Learning Objectives

After completing this course, you will be able to:

  • Identify the benefits of using recurring invoices
  • Create a Recurring Invoice

Introduction

Just like customers use Recurring Bills, we offer Recurring Invoices to simplify workflow and save time.

This is very beneficial if a Bill.com customer's business is based on recurring fees. In the next slides, we will review how to create a Recurring Invoice and the its features.

Creating a Recurring Invoices

To create a Recurring Invoice, go to:

Receivables > Recurring Invoices > Click New

  1. On the New Recurring Invoice page enter details, such as:
    • Next Due Date - the due date of the next invoice needed
    • Create - the number of days before the due date that invoice will be created
    • Customer - the company or person being invoiced
    • Payment Terms - how soon payment is expected
    • Frequency - how frequently invoices need to be created
    • Ends on - the date to stop creating the invoice (if the next due date is on or after the Ends On date, the invoice will not be created
    • Invoice Template - the look-and-feel of the invoice
    • Item - details about the product or service for invoicing, including Description, Quantity, Price, Location, Class, Job, and whether the item is taxable
      • To apply a discount, refund, or rebate, enter a negative value or percentage for Price
    • Customer Message - any extra details to help the customer understand and pay the invoice. This message appears above the line items on the invoice.
    • Send Via -
      • Automatically send recurring invoices - invoice will be emailed immediately once it is created
      • Email the invoice later (uncheck "Automatically send recurring invoices")
      • Have Bill.com mail the invoice via USPS
        • Important: For security reasons, Print/Mail Invoice is only available after you’ve added an active bank account.
        • Invoice can also be printed to be mailed outside of Bill.com
  2. Click Save

Things to Know

  • If the create date is today's date or earlier, the invoice will be created within 30 minutes.
  • The Invoice Date will be Due Date minus the Payment Terms. If no payment terms are set, the Invoice Date will be the Due Date.
  • The amount of the invoice can be edited after creation. When setting up the recurring invoice, enter an amount of $0.01
  • After the invoice is created, a document can be attached from the Inbox by clicking the "Document for" drop-down menu while processing the document, and selecting the invoice.

Knowledge Check 1

  • Create
    the number of days before the due date that invoice needs to be created
  • Next Due Date
    the due date of the next invoice needede your answer...
  • Frequency
    how frequently invoices need to be created
  • Ends On
    the date to stop creating the invoice (if the next due date is on or after the Ends On date, the invoice will not be created

Knowledge Check 2

If the create date is today's date or earlier, the invoice will be created within  minutes.

Knowledge Check 3

The Invoice Date will be Due Date minus the . If no payment terms are set, the Invoice Date will be the Due Date.

12.) Credit Memos

Learning Objectives

After completing this course, you will be able to:

  • Create a Credit Memo in Bill.com

  • Apply a Credit Memo to an Invoice in Bill.com

Introduction

There are times when a seller needs to apply a credit amount to the next invoice.

In cases like these, Bill.com has a way to create a credit memo in order for the seller or the buyer to apply to the next invoice.

For example, let's say a buyer has a $50 credit. The next invoice that is made is for $400, but when the buyer or the seller schedules a payment, they can apply the $50 credit. As a result, a $350 payment is scheduled.

Create a Credit Memo

In order to create a Credit Memo, go to:

Receivables > Invoices > click on "All Credit Memos" > click New

You'll notice Credit Memos look like Invoices.

Enter the information below:

  • Customer: Acme, Inc.
  • Ref#: leave as default
  • Credit Date: 11/1/16
  • Item: Consulting
  • Quantity: 1
  • Price: $50
  • Click Save.
  • An email will be sent.

 

You can check your email to see how the email looks like.

 

 

 

 

 

 

 

 

 

The Portal Account user can log in and see a credit that can be applied to an invoice.

On the Home page, you'll see any credits available in the Summary section.

You can also see how many credits you have by hovering over Bills and click on Pay, you'll see toward the bottom "Credit to Apply". The credits are automatically applied to the invoice you select. When you pay, it will be the net amount.

Knowledge Check 1

  • Account Receivable Account & Portal Account
  • Basic Receivables Account
  • Accounts Payable Account
Where are Credit Memos applied?

Knowledge Check 2

  • Receivables > Credit Memo
  • Receivables > Payments
  • Payables > Bills > Click on "All Vendor Credits" > New
  • Receivables > Invoices > Click on "All Credit Memos" > New
Where do you go to create a Credit Memo?

13.) Items

Learning Objectives

After completing this course, you will be able to:

  • Explain what Items are used for

Introduction

In a previous section, you created a new invoice and created an Item.  This section will explain what Items are and how they are used.

Creating Items speeds up the invoicing process. By selecting an Item, the price, description, Account, and Tax can be preset.

The use of Items is simply used to track revenue. Let's imagine your working for a running shoe store. There are several things being sold (shoes, socks, and other accessories).

You want to track how many Nike, Adidas, and New Balance shoes you sell. The way you can track is to create an Item for each product or service you sell.

At the end of the month, you can run a report to see how much you sold by Item. For example, you can compare the amount/value of Nike shoes were invoiced vs. Adidas shoes.

Create an Item

Let's create another Item.

Receivables > Items > click New

  • Type: There are four options: Service, Product, Discount, Sales Tax. Select "Product"
  • Name: The name you give the Item to be used when creating an invoice. Enter "Nike Shoes"
  • Description: Define what the Item is and what it's used for. Enter "Sale of Nike Shoes".
  • Price/Rate: You can make this field a dollar amount or a percentage. Percentage is used when the Type is Discount or Sales Tax. Enter an amount of $100.
  • Account: Each Item should be mapped to a specific Revenue account for reporting purposes. Create a new account named: Shoes Revenue, Account# 2003, Type: Income
  • Subitem: You can create a hierarchy system. Leave blank.
  • Taxable: This option can preset if the Item needs to have tax applied. Leave blank for now.

Knowledge Check 1

  • Revenue Tracking & Speed up the invoicing process
  • Expense Tracking & Track customer balances
What are two reasons customers use Items?

Knowledge Check 2

Price/Rate: You can make this field a amount or a percentage. Percentage is used when the Type is or .

14.) Sales Tax

Learning Objectives

After completing this course, you will be able to:

  • Identify when and how to use Sales Taxes

Introduction

If a business sells physical goods in a particular state, they are probably required to collect sales tax from their customers. Some examples may be:

  • food
  • prescription drugs

Services are less likely to be taxed than goods, but most states tax some services. Services that are performed in connection with the sale of physical property (like the delivery of a couch you just purchased), or those that directly lead to the production of physical goods (such as printing) are much more likely to be taxed. Service providers that are commonly exempted from sales tax include:

  • Doctors
  • Dentists
  • Attorneys

In the next slide, let's create a Sales Tax and apply it to an invoice.

Create a Sales Tax

Creating a Sales Tax is exactly like creating an Item. The only difference that makes it a Sales Tax is the Type.

Go to: Receivables > Items > Click New

  • Type: Sales Tax
  • Name: Santa Clara County Sales Tax
  • Description: Leave blank
  • Price/Rate: 8.75%
  • Account: Create a new account - Account Name: Sales Tax, Account# 2004, Type: Other Current Liability
  • Subitem: Leave blank
  • Taxable?: Leave unchecked
  • Click Save

Use Sales Tax in an Invoice

Now, let's create a new invoice and apply Sales Tax.

Receivables > Invoices > New

  • Customer: Acme, Inc.
  • Invoice#: INV-5
  • Invoice Date: 11/10/16
  • Due Date: 12/10/16
  • Item: Nike Shoes
  • The rest of the field will populate (description, quantity & price).
  • Click on Tax

Toward the bottom of the invoice, you need to select a Sales Tax.

  • Select "Santa Clara Sales Tax" from the dropdown
  • Don't click Save yet.

 

 

 

 

 

You'll notice the Balance Due is $100 (product) + $8.75 (sales tax) = $108.75.

Now uncheck the "Tax" checkbox and see the Balance Due change to $100.

Check the Tax option again and click Save and Send.

Something to take note is in order for Sales Tax to be applied to the Balance Due, two things need to be selected.

  1. The Tax checkbox needs to be selected
  2. The Sales Tax field needs to have the correct Sales Tax.

If one of those two are not selected, then tax will not be applied to the Balance Due.

Knowledge Check 1

  • Apply Sales Tax
    iPhone
  • Don't Apply Sales Tax
    Bagels
  • Don't Apply Sales Tax
    Doctor's visit
  • Apply Sales Tax
    Couch

Knowledge Check 2

  • Add Sales Tax as a line item on the Invoice & Checkbox on "Tax"
  • Select a Sales Tax & Checkbox on "Tax"
  • Add Sales Tax on the Customer profile page & Select a Sales Tax
What are the two things customers need to do to apply Sales Tax to an Invoice

Knowledge Check 3

To create a Sales Tax, you need to go to: Receivables > > New. Make sure to select "" for the Type.

15.) Payment Terms

Learning Objectives

After completing this course, you will be able to:

  • Explain what Payment Terms are

  • Create a Payment Term

Introduction

Payment terms are the payment rules applied by suppliers on their customers. Payment terms are applied to ensure that payments are received by suppliers within a reasonable period of time.

Common payment terms used are:

  • Due upon receipt - payment is due when bill is received by the customer
  • Net 10 - net balance is due in 10 days
  • Net 15 - net balance is due in 15 days
  • Net 30 - net balance is due in 30 days

In the next slide, let's create a new payment term.

Create a Payment Term

To create a payment term, go to:

Gear Icon > Settings > under Accounting, click on Payment Terms > Click New

Let's create a new payment term that gives customers 45 days to remit payment.

  • Name: Net 45
  • Net Due In: 45

This means that the customer has to pay 45 days from the Invoice Date.

Now let's use the new payment term (Net 45) on a new invoice.

Use a Payment Term

Create a new invoice

Use the data to the left to fill out the fields, but do not fill out the Due Date.

When you select payment terms, the Due Date will automatically populate according to the payment term.

In this scenario, the Invoice Date is 11/10/16 with a payment term of Net 45. Therefore the Due Date is 12/25/16.

 

Knowledge Check 1

  • Due Upon Receipt
    Payment is due right away
  • Net 10
    Payment is due 10 days from the Invoice Date
  • Net 15
    Payment is due 15 days from the Invoice Date
  • Net 30
    Payment is due 30 days from the Invoice Date

Knowledge Check 2

  • Item
  • Sales Rep
  • Payment Term
  • Customer
When creating a new invoice, the Due Date be automatically populated when a _____________ is selected.

16.) Payment Timing

Learning Objectives

After completing this course, you will be able to:‚Äč

  • Describe what payment timing is
  • Compose an example scenario

Introduction

In the Payables section, we learned about Payment Timing. With Receivables, there are differences you need to understand.

Since Bill.com only receives ePayments.

Understanding Payment Timing

Below is a calendar that shows how the payment timing works for receiving ePayments.

  1. Customer payment is scheduled by 6pm PT
  2. Payment is processed and funds are withdrawn from the customer's bank account
  3. 3 banking days after the process date, the funds are deposited in the Bill.com customer's bank account.

 

 

 

 

 

 

 

 

 

It is important to know which date to start counting to figure out the deposit date.

Always start from the date the funds are withdrawn which is the Payment Date.

For the example to the left, if the Payment Date is 11/10/16, add three banking days.

Since 11/11/16 is Veteran's Day (Bank holiday), the deposit date is 11/16/16.

 

 

 

 

 

 

 

 

Receivable ePayments always take 3 banking days from the Payment Date.

PayPal and Credit Cards

PayPal and Credit Cards (Vantage/PayTrace) have their own payment timing. Bill.com doesn't have any control on when the payments get deposited.

Click on Accepting PayPal Payments and Accepting Credit Card Payments for more details.

Knowledge Check 1

  • 5
  • 2
  • 4
  • 3
How many banking days does it take from the Payment Date for a payment to be deposited?

Knowledge Check 2

Below is a calendar that shows how the payment timing works for ePayments.

  1. Customer payment is scheduled by  
  2. Payment is processed and funds are withdrawn from the bank account
  3. after the date, the funds are deposited in the Bill.com customer's bank account.

Knowledge Check 3

  • Bill.com owns and controls the payment timing for ePayments
  • Bill.com owns and controls the payment timing for Credit Cards
  • Bill.com owns and controls the payment timing for PayPal

17.) Cancel / Void Payments

Cancel a Receivables Payment

  • A Receivables payment can be canceled until 2pm PT the banking day before the Payment Date.
  • If a Receivables payment is canceled, no debit will be made to the customer's account.

Voiding a Receivables ePayment

Voiding a Receivables payment is very different than a Payables Payment.

Voiding an online Receivables payment (ePayment, Paypal, Paytrace) only voids the transaction record of the payment. It does NOT void the actual money movement of funds that is occurring.

After the cancel cutoff time (2pm PT), funds will be debited from the customer's account, and the Operations Department will have to handle the void. Credit timing is the same as it is for voiding and crediting a Payables payment - 4-5 business days from the Payment Date (or, for Payables, Process Date). If the payment has already deposited to the Receivables account, the user will need to refund the customer through another method.

  1. Verify the payment can still be voided
    • Go to the payment in Bill.com, the Payment Date should be in the past, and the Deposit Date in the future
    • To be extra sure, click Details > Disbursement on the Payment page, check the Status column
    • If the Status column does not say Done (it may say Scheduled or Hold): then proceed to Step 2
    • If the Status column says Done and Deposit Date is today or in the past: this payment cannot be voided and credited back to the customer through Bill.com, as the funds have already been disbursed. The user will need to refund the customer through another method (e.g. creating a vendor for them, making a bill, and issuing a Payables payment).
  2. Transfer the ticket to Operations in Zendesk using "Transfers::Operations::Void AR Payment"
    • Be sure to include the payment link

Void a Vantage PayTrace Payment

Bill.com does not process the funds for Paytrace transactions - we facilitate the transactions, and Paytrace processes them.

  • Verify the user has already logged into Paytrace and has voided the payment there
  • Once verified, a Bill.com Support agent will pull up the payment and click the Void button

Voiding PayPal Payments

  • Verify the user has already logged into PayPal and has voided the payment there
  • Once verified, the Bill.com Support agent will pull up the payment and click the Void button

Voiding Manual Payments

Since manual payments are not processed from within Bill.com, all manual payments can easily be voided at any time.

Knowledge Check 1

  • 2pm PT
  • 6pm PT
  • 2pm ET
  • 4pt PT
What is the cutoff time to cancel a Receivables payment?

Knowledge Check 2

Voiding an online payment (ePayment, Paypal, Paytrace) only voids the transaction record of the payment. It void the actual money movement of funds that is occurring.

Knowledge Check 3

  • Yes
  • No, Bill.com customers won't see a "Void" button.
Can Bill.com customers click "Void" on or after the Payment Date?

Knowledge Check 4

  • Support Leadership
  • Your manager
  • Product Management
  • Operations
Which department needs to get involved to issue a credit after a void is requested?

Knowledge Check 5

In order to be able to void and credit back a payment to the customer, verify if the payment is within protocol:

Go to the payment in Bill.com, the should be in the , and the Deposit Date in the  

Knowledge Check 6

  • Void the payment in PayPal/Vantage PayTrace or have a Support agent void the payment in Bill.com
  • Void the payment in PayPal or Bill.com or have a Support agent void the payment in Bill.com
  • Have Operations void the payment in Bill.com or Void the payment in PayPal/Vantage PayTrace
What are the two things Bill.com customers need to do to void a PayPal or Credit Card payment?

Knowledge Check 7

  • Bill.com customers can void manual payments
  • Support agents are needed to void Vantage PayTrace payments
  • By voiding an ePayment, the credit will automatically be sent back to the customer