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This article is the fourth in a series of articles explaining how to use the accounting features of EZ-NetTools. This month I will address the Accounts Payable features. The previous articles in this series have discussed setting up a basic account receivable system through which you can bill your member accounts. In this article I will discuss the flip side of the accounting transactions. The Accounts Payable tools are distinctive among the accounting tools because they are available in both the member and the reseller tool set.
What is Accounts Payable?
Unlike receivables, in Payables a bill or an invoice is something you owe someone else. The same transaction has two meanings depending on which side of the transactions you are on.
The EZ-NetTools accounting system is unique because your members, you as a reseller, and ICServ are all using the same computer system. Since we all share the same database, the same record can be used for the receivables system and the payable system depending who you are. For example, when you create an invoice in EZ-NetTools for a member account, that transaction will show up in the member tools' accounts payable as an invoice that is due. Since it is the same record, the instant your create it, it is in the payables system of the member. The same is true of your bills to ICServ. Through the Accounts Payable tools in the reseller tools, you can see exactly what we see in our Accounts receivable tools. We often have resellers call us up with questions about their statements. The first thing we do is look in the Receivables database to see what the situation is. You as a reseller, can see exactly what we are seeing because the Payable tools access the exact same records. It is like looking at two sides of the same stained glass window.
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The same thing is true of billing address information. We often have resellers request that we change their billing address information. We are glad to do so. However, since we are sharing the same database, as a reseller you can change the billing address information any time you wish.
What the EZ-NetTools Accounts Payable are not. The Accounts Payable features in EZ-Nettools are not a complete payables system designed to take the place of a standard payable system. For example, EZ-NetTools cannot print checks. (However you can make and record a credit card payment.) It is designed for only the transactions between two EZ-NetTools entities, that is between ICServ and you as a reseller or between you and your members. In other words, you cannot record nor pay bills for your other vendors such as the rent and utilities.
Next, I will discuss the four main components of the Accounts Payable system. These are the four options you will see if you click on the Accounts Payable link under the Accounting tab of your Reseller Tools. Refer to the graphic below.
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Statement
The purpose of the Statement is to show the invoices and payments on your account. When you click on the Statement link from the Reseller Tools you can see a summary of the invoices and payments that you have with ICServ. You should be able to see the monthly invoice generated by ICServ that is usually created on the first day of the month. You will also see any payments you have made. The default time frame for the detailed transactions is the last 30 days. The balance forward as of the beginning of this period is the shown in the first record shown in the statement details. There is also an aging of the amounts owed.
At the top of the payment page, you have the option of changing the date ranges for of the detailed transactions. If you want, you can see all transactions since the beginning of last year. If you ever have a question about the amount you owe to ICServ, this would be the first place to start looking since this is the first place we will start looking. To change the dates, enter the new date range you wish and the click the Refresh button.
If you want to see the details of any particular transaction, select the transaction and click on the View button and you will be able to see all the information about the invoice or payment. For example, if you have made a payment by credit card, you will be able to see the transaction number and authorization code given by the credit card gateway.
If you want a printed copy of the statement, there is a Print button on the bottom of the page. As an example, for tax purposes you might want a summary of your account for the entire year. Enter a date range for the entire year, click Refresh, and then Print and you will have a short summary to give to your accountant.
If you are using the EZ-NetTools system to create invoices and record payments for your members, then they can see a statement of what they owe you as well.
View Billing Info
When you click on the View Billing Info link you can see the information that is the basis for the periodic billing which will be explained more fully in the next article in this series. The Billing Information Records are NOT transactions. In the statements you are likely to have an invoice each month, whereas there is only one Billing Information Record for each member account and type of service. For example, every reseller will have one and only one billing record for each of their member accounts with product ID of 01001. The product ID of 01001 is the code for monthly billing for a member account (The only exception will be for those resellers who wished be to be billed quarterly or annually).
There is a lot of key information in the Billing Information Records. Consequently, all member accounts must have a Billing Information Record in order to function correctly, even if the account is inactive. Let me discuss each column of the records.
The Select radio button is used in conjunction with the View button at the top of the page. When you select a record and the click the View button, you will be able to see a description of the product ID for that billing information record.
The second and third columns will be discussed in more detail in the next article. For a reseller, it is usually 0000002 and ICServ Inc.
Base ID is generally associated with the member account.
The Company Name is the name of the member account.
The Product ID is assigned by the entity specified in the second and third columns. The description of this product can be displayed by selecting and viewing the record as described above. For example, you are likely to see many product ID's of 01001, which is the product ID ICServ uses for monthly fees. Refer to the previous article about setting up a basic billing systems for more explanations about product ID.
The Amount is the amount that is being charged for this product.
The Start Date is the first date that this product was charged. Usually, it is the date the member account was activated.
The Billed Through Date is key to the periodic billing that will be discussed in the next article. This date indicates the date the account has been paid through. Generally, all the other information in the Billing Information record does not change once it is set up. However, the Billed Through date usually is updated every month, right after the monthly billing has been run.
Status indicates whether this Billing Information Record is active or not. Every active account should have an active Billing Information Record. If it does not, there is usually something wrong. Inactive accounts are shown in red type.
When you first arrive at this page you will see all Billing Information Records, both active and inactive. If you want to see just the active records, then uncheck the View All box.
Address and CC Info
The address and credit card information is exactly the same page we discussed in the last article in this series. In that article, it was called the Bill To Address. As I mentioned previously, the receivables and payables systems are two sides of the same coin. Consequently, the name, address, and credit card information can be maintained either by the person doing the billing or the person being billed. For example, if you want to change the email address where ICServ sends your monthly statement, you can change it in the Accounts payable tools. Similarly, your members can change their name, address, and credit card information.
Make Payment
The Make Payment option will take you to a page that will allow you to make a credit card payment on your account. You can pay your bill to ICServ this way. Your members can also pay you if they chose.
The input fields are pretty self explanatory. A red asterisk (*)indicates that the field is required. While the address information is not required, it is very helpful as well and is becoming more and more important in preventing credit card fraud. The name and address field should be the same as the billing address for the credit card to be processed. The total field will default to the amount due, but can be changed. You can complete the description and comment field if you wish and will appear when you view these transactions in either accounts payable or account receivable.
When you press the Submit button, the credit card will be processed immediately and you will receive an indication whether the payment was approved or not.* Once the payment has been approved, you can go immediately to the statement and verify that your account was credited for the payment. There is no delay in posting the payment in either the receivables or the payable system.
*In order for your members to pay you via credit card, you will need to set your reseller account to accept credit card payments. Click here to read last months article for more info. ICServ is already set up to accept credit card payments.
Reports
If you would like to make your payments by ACH, that is to have it withdrawn directly from your checking account, you will need to submit a form. The link in the reports section will display this form. Simply click on the link, print out the form, complete the form and mail it to ICServ. If you will process ACH transactions, your can probably use the same form for your members.
Links
This section will be developed in the future.
Summary
As I have stated repeatedly in this article, the Payables system is the other side of the coin from the Receivables system. Anything done in one system is automatically and immediately done in the other. Consequently, as a reseller you can view all of the financial transactions between you and ICServ. If you are using the EZ-NetTools Receivables system, your member accounts can also see the same things through their Payables tools. Finally, by using this system you can make a payment on your account with ICServ. Similarly, your member accounts can also pay you online.
The next article in the series will discuss how you can create monthly invoices to your member accounts quickly, regardless of the number of active member accounts you have.
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