| | 5.3.7 F7 Payment Procedure | |
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| Finance Procedures: | | Finance procedures involve of at least the following 7 measurable tasks and states: | | F1. Prepare is the initial state while the company is a Prospect until they are a Client. | | F2. Commission Percentages are entered when a new Client is handed over from Sales to Brokers. This task F2 is triggered by task S5. | | F3. Payment Schedule is verified and/or entered when a client approves a quotation with an energy provider. This task F3 is triggered by task B10. | | F4. Proforma Invoice may be created by the schedule when a payment is due from an energy provider. | | F5. Upload Advice Notice may be triggered by an energy provider in response to a proforma request. | | F6. Send Invoice is triggered by the schedule with optional advice from an energy provider. | | F7. Payment is entered and assigned to the relevant financial accounts based on the commission percentages. |
| Abstract: | | Account Receivable (AR) is the primary financial account for revenue from clients and client energy providers. All imcome paid into the company bank account is recorded as an account receivable. | | Account Receivable may also be known as: Schedule, Payment Advice, Invoice, Payment, Commission. |
| Finance Responsibility: | | The finance team has the responsibility to verify and correct the account receivable schedule. While the AR schedule is complete and correct, all energy provider and client billing will be complete and correct. Manual creation of spread sheets has been eliminated to maximise productivity. The majority of data entry has been eliminated to maximise productivity. | | Summary: | | 1. Verify Eliza generated AR Schedule: commission percentages. | | 2. Upload energy provider advice spread sheets. | | 3. Verify Eliza emailed invoices. | | 4. Enter AR payments. |
| AR State Transition: | | Scheduled is the initial state created for an accepted proposal. | | Advice and proforma invoice to begin billing process. | | Invoiced as the sales invoice to client and/or energy provider. | | Paid to General Ledger with commission assignments. | | Cancelled when things go wrong. |
| AR Type: | | EP Fixed as the default start method. | | EP Reconcile as the default end method. | | Client Fixed Fee as an option. | | Client PC of Saving as an option. |
| AR Reconciliation: | | Reconciliated-Commission | | = Actual-Consumption | | * Commission-Rate | | as Total-Annual-Commission | | - Initial-Commission |
| Commission Percentages | | When payment is allocated for a contract, the contract level commission (or scheduled) percentages are automatically replicated by Eliza to all dependent payments. This avoids this data needing to be manually entered. This improves productivity and eliminates errors. |
| B10. Client Accepted Quote | | Eliza is notified by the client or broker when a quote is accepted - one specific proposal within the quote is identified as accepted. The accepted set of proposed contracts are changed to accepted and the remaining set of proposed contracts are changed to declined. For each accepted contract, one or more Account Receivable scheduled records are created - each with a specific date when a billing event is due. An AR Scheduled record for the contract start date may be created for an "Initial-Commission" amount that is calculated as a percentage (60%) of the estimated total annual spend. An AR Scheduled record for the contract end date may be created for an amount that is calculated as the reconciliation: see AR Reconciliation. | | Eliza is able to deduce other billing schedules based on period (annual) and duration of contract. |
| F7 Get Payment: | | Each payment is entered into the finance general ledger and account receivable ledger. The general ledger will assign the amounts to the applicable client contracts and the client account. Based on commission percentages in the client contracts, user accounts are updated with actual commissions amounts. The account receivable schedule is updated to state that the amount has been paid. The account receivable schedule may be viewed as revenue earned for the business and for personal commissions - KPI on the dashboard. |
| F5. AR Advice Note | | When an energy provider provides a List with actual consumptions for a set of services, that file is uploaded and all the contract and AR data is automatically updated. The List must be indexed by MPAN/MPR and may include any number of rows for any set of dates. |
| F6. AR Invoice | | When an AR record has all the actual data needed to create an invoice, the invoice is generated and stored as a file that can be printed and/or emailed. An invoice may be for one AR record or a set of AR records that represent the same energy provider and due date. Every invoice is frozen and stored for a period of at least seven years in many data centres to ensure that it cannot be altered in any way. |
| F7. AR Payment | | When an AR payment is made by a client or energy provider is must be recorded into the general ledger and assigned to various personal accounts. A gross payment into the bank by and energy provider may need to be assigned to many contracts and even many clients. | | The AR schedule can be summariezed for a set of contracts and a period - the finance team may mark the set of AR records as paid and the whole set will be updated by Eliza. A payment to a contract may be negative where the inital commission paid exceeds the total annual commission. A set of AR records organized by billing date for a selected energy provider may be handed and processed as if they were a single record. A large number fo small payments will have less reason to be delayed than a small number of large payments - AR sets should be modest in size. |
| Document Control: | | 1. Document Title: F7 Payment Procedure. | | 3. Keywords: F7 Payment Procedure. | | 4. Description: F7 Payment Procedure. | | 5. Privacy: Public education service as a benefit to humanity. | | 6. Issued: 11 Jun 2018. | | 7. Edition: 1.3. |
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