TELECOM COMPANY CASE

[scorpion09]

Hi
we're a telecom company, we'll use AR very soon i've two question:
1-where can i create product items, like communications redevances for example.
2-some invoices are created manually by a commercial agents, these agents haven't practice accounting , so they can't select the natural account for product lines, how can they insert there invoices with product item lines,and the system show the appropriate account.
can any user of a telecom company help me to solve this problem.
Regards

[tgs100]

For the second question,

You can create memo lines and attach the revenue account in the memo lines. The memo lines can be refered in the invoice and the accounts will get defaulted from the memo lines (Auto accounting setup for revenue should be 'Memo Lines'). You can consider this as one of the options.

For the first question,

All items are created in the Item Master in Inventory module.

Cheers,
Saravanan TG

[scorpion09]

Hi
thanks for help, we have a product like 'ADSL redevances' , what's steps that i should to follow to use this item in invoice lines.
regards

[tgs100]

I have no idea on ''ADSL redevances' items. Just giving below my thoughts.

You can define all the billable items in the memo lines and select these items in the invoice lines (in description field). This is not the only option, you may consider the other options as well.


Cheers,
Saravanan TG

[hiszaki]

Hi scorpion09

Saravanan has a good option by define the items (ex. ADSL redevances) in the memo line not in Inventory module & each time you create invoice manual, use these memo lines.

Thanks
Hisham

[scorpion09]

Hi
thanks fro reply, is there any document that can explain memo line setup.
Regards

[tgs100]

It is a very simple setup.

Setup --> Transactions --> Memo Lines.

1. Select OU
2. Enter product code and description
3. Enter revenue account
4. Modify active from date (if required)

Also setup the autoaccounting rules (setup--> transactions --> Autoaccounting) for revenue to 'Standard Lines'

Cheers,
Saravanan TG

[scorpion09]

hi Saravanan
thanks lot for your reply, in telecom companies, we've balances between us and other telecom comapnies (interconnections) so i'll give an example, we have the following balance

our company xx telecom company
1000 500

in this case we should receive a payment of 500 because the balance is in our favor, we should enter 500 in AP (expence), in AR we should enter 1000 (revenue), we also should enter payment in AR with 500, how can we do to balance the 500 between AP and AR. thanks lot

[tgs100]

Let me first put my understanding below. Check if it is correct.

You want to create a AR invoice on Telecom customer for 1000, out of which the telecom customer will only pay 500. The remaining amount should be borne by the company.

Setups required
==========
1. Create a bank account (exclusively for this purpose) with cash account as "AR-AP-Clearing Account".
2. Create a new payment method for the above bank account with cash account as "AR-AP-Clearing Account" (define one if not available).

Transactions
========
1. Create an AR invoice on telecom customer
Receviable - 1000
To Revenue - 1000

2. Create a receipt for the telecom customer for 500
Cash - 500 - Dr
To Receivable - 500 - Cr

3. Create another receipt with newly defined payment method for the same customer for 500
AR-AP Clearing Account - 500 - Dr
To Receivable - 500 - Cr

4. Create AP Invoice
Expense - 500 - Dr
To Liability - 500 - Cr

5. Make Payment from the newly created bank account
Liability - 500 - Dr
To AR-AP Clearing Account - 500 - Cr.

The above process will work if my understanding is correct.

Cheers,
Saravanan TG

[scorpion09]

Hi
it seems to me that your proposal is interesting but I have a little trouble, can you tell how can i create 'AR-AP-Clearing Account'
Best Regards[:)]

[tgs100]

<b>how can i create 'AR-AP-Clearing Account'</b>

'AR-AP-Clearing Account' is just a name. Create an account (of expense type) in the flexfield values and group it under appropriate expense head. Enter the description as 'AR-AP-Clearing Account'.

If there are any balances in 'AR-AP-Clearing Account' in GL, then we can easily understand that there are some transactions in AR for which the contra transactions are not created in AP. You need to identify those AR transactions and complete the corresponding AP transactions.

Cheers,
Saravanan TG