BillMax Book Keeping and QuickBooks

BillMax Book Keeping and QuickBooks® BillMax Billing Solutions The iSpark Group, Inc. PO Box 1947 Colleyville, TX, 76034 USA 877.245.5629 817.446.777...
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BillMax Book Keeping and QuickBooks® BillMax Billing Solutions The iSpark Group, Inc.

PO Box 1947 Colleyville, TX, 76034 USA 877.245.5629 817.446.7776 Fax 817.446.7773 BillMax Documentation Copyright 1994-2014 The iSpark Group, Inc.© Documentation for BillMax 2014 All rights reserved. No part of this documentation may be reproduced or transmitted in any fashion without written permission by The iSpark Group, Inc. This documentation is for use of evaluating the BillMax billing software created by The iSpark Group, Inc or for the use of licensees of the BillMax billing software created by The iSpark Group, Inc. Any other use of this documentation without written permission of The iSpark Group, Inc. is a violation of the use of this documentation. While precautions have been taken in the preparation of this documentation, The iSpark Group, Inc. assumes neither liability nor responsibility for errors or omissions, or for damages resulting from the use of the information contained herein. All terms mentioned that are known to be trademarks have been appropriately capitalized. Use of the a trademark does not affect the validity of any trademark or service mark. Links to third-party Web sites are provided for convenience. The iSpark Group, Inc. is not responsible for any content contained in the third-party Web sites. Comments about this documentation may be sent to .

Table of Contents General Book Keeping ........................................................................................................ 3 QuickBooks IIF .................................................................................................................. 3 Sales Tax .................................................................................................................. 4

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BillMax Book Keeping and QuickBooks® Sales, Store Credits and related transactions .................................................................... Equipment Deposits .................................................................................................... Payments, Refunds and related transactions ..................................................................... Bank Deposits ............................................................................................................ Processing the QuickBooks IIF ............................................................................................. QuickBooks Processing after the IIF import ............................................................................ Sales Tax Issues ................................................................................................................. Third Party References ........................................................................................................

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BillMax Book Keeping and QuickBooks®

General Book Keeping In order to facilitate book keeping entries into a third party accounting package such as QuickBooks®, Great Plains®, etc. BillMax provides the book keeping report. The book keeping reports lists all the necessary transactions for an accounting package. By default, the transactions are divided by Virtual Company. It is expected that each Virtual Company will be a customer in the accounting package. Alternatively, the transactions may be aggregated as a single Virtual Company mapping to one customer in the accounting software.

Warning When Accounts are moved from one Virtual Company to another, the book keeping entries for the Virtual Companies involved will change. Therefore auditing historical BillMax book keeping reports against historical book keeping entries in the accounting system will be problematic. To avoid this either use the aggregation option, refrain from moving customers between Virtual Companies, or be prepared to make manual adjustments or create audit exception reports.

Note The book keeping report uses the effective date of financial transactions.

Warning Deleting or adding transactions in BillMax that have already be entered into the accounting system will causing audit exceptions.

Note To make full use out of the report, create bank deposits using the Report->Bank Deposit functionality. The book keeping report may generate results on an Accrual accounting basis or a Cash accounting basis. If the results for an Accrual accounting basis are booked in the accounting software, the Accounts Receivable report total from the accounting software should match the total from the BillMax A/R Aging report when "Include Accounts that have Negative Balances" is selected. If the results for a Cash accounting basis are booked in the accounting software, the Accounts Receivable report total from the accounting software should match the "Cash/Credit A/R Total" line from the BillMax A/R Aging report when "Include Accounts that have Negative Balances" is selected.

Warning It is imperative that either the Accrual accounting basis is used all the time or the Cash accounting basis be used all the time. Switching between them will cause accounting issues. To that end, the list "book keeping" may be used to specify default settings.

QuickBooks IIF The following discusses BillMax transactions and how they are handled with respect to a QuickBooks IIF file. Even if you do not use QuickBooks, the following discussion may give insight into how to enter transactions into a different accounting system.

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BillMax Book Keeping and QuickBooks®

Sales Tax QuickBooks is very particular when it come to specifying tax in the IIF file. In QuickBooks, if Company Preferences->Sales Tax-> "Do you charge sales tax" is set to "Yes" the IIF file must contain Sales Tax information, even if no transactions in BillMax are taxable. Conversely, if Company Preferences>Sales Tax-> "Do you charge sales tax" is set to "No", no tax information must be included in the IIF file. To indicate to BillMax how Sales Tax should be handled, set the "QB Include Tax" in the "report_bookkeeping" List to the appropriate value. If Sales Tax is to be included in the IIF file, at a minimum the Current Liability account "Sales Tax Payable" and the tax item "BillMax Zero Tax" are included in the IIF file

Sales, Store Credits and related transactions There following BillMax transactions are added to a QuickBooks Invoice or a QuickBooks Credit Memo. Whether an Invoice or Credit Memo depends on the total of the transactions. If Sales (debits) are greater than or equal to Store Credits (credit), then and Invoice is created. Otherwise a Credit Memo is created.

Transactions Added To Invoices and Credit Memo • Sale • Store Credit • Sales Return • Credit Reversal • Sale Write-off • Store Credit Write-off • Sales Write-off Reversal • Store Credit Write-off Reversal The book keeping report may classify each transaction by Service Definition, Charge Type, or Service Class. In addition it differentiates between One Time and Recurring Sales. The items on a QuickBooks invoice are first designated as either "Recurring" or "One Time". The secondary classification is the Service Definition, Charge Type or Service Class.

Equipment Deposits Deposits in BillMax are added by creating a General Journal entry in QuickBooks. This entry uses Accounts Receivable and the Current Liability account "BillMax Equipment Deposits". Deposits add increase Accounts Receivable and BillMax Equipment Deposits and Deposit Reversals decrease Accounts Receivable and BillMax Equipment Deposits.

Payments, Refunds and related transactions In BillMax every Payment and Refund is associated with a Tender (cash, check, Visa, ...) used to make the payment. In QuickBooks, a bank account "BillMax" is created and a sub account for each tender is created under the BillMax bank account.

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BillMax Book Keeping and QuickBooks® Payments

Payments are grouped by tender and a QuickBooks Payment is entered with "Deposit to" with the bank account "BillMax:tender"

Payment Reversals

Payment Reversals (checks returned for insufficient funds, credit card charge-backs, etc.) are grouped by tender and a QuickBooks General Journal entry is entered increasing Accounts Receivable and decreasing the bank account "BillMax:tender"

Cash (Payment) Write-offs

Payment write-offs are used to zero an Account balance without refunding an overpayment. Payment write-offs are booked by entering QuickBooks General Journal entry increasing Accounts Receivable and increasing the income account "BillMax:Payment/ Refund Writeoffs"

Cash (Payment) Write-offs Reversals

Payment write-off Reversals are booked by entering QuickBooks General Journal entry decreasing Accounts Receivable and decreasing the income account "BillMax:Payment/Refund Writeoffs"

Refunds

Payments are grouped by tender and a QuickBooks Check is entered with the bank account "BillMax:tender"

Refund Reversals

Refund Reversals are grouped by tender and a QuickBooks General Journal entry is entered decreasing Accounts Receivable and increasing the bank account "BillMax:tender"

Refund Write-offs

Conditions can arise where BillMax reports over-refunded monies and the customer will not pay the owed amount. Excessive Refund write-offs are booked by entering a QuickBooks General Journal entry decreasing Accounts Receivable and decreasing the income account "BillMax:Payment/Refund Writeoffs"

Refund Write-offs Reversals

Refund Write-off Reversals are booked by entering QuickBooks General Journal entry increasing Accounts Receivable and increasing the income account "BillMax:Payment/Refund Writeoffs"

Bank Deposits BillMax Bank Deposits are used to move monies to and from the QuickBooks BillMax bank accounts representing the various tenders and real bank accounts as specified in the BillMax Bank Deposit Monies collected are moved from the tender bank account to the Bank Deposit bank account using the QuickBooks Deposit transaction Monies withdrawn are moved to the tender bank account from the Bank Deposit bank account using the QuickBooks General Journal transaction

Processing the QuickBooks IIF 1. Visit the List "report_bookkeeping" and set the default values to be used for the Book Keeping report. Option "Date Grouping" will always be "Day" regardless of the setting and "Group Taxes" will always be "unchecked" (or No) when the IIF file is created. 2. Go to Reports->Book Keeping.

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BillMax Book Keeping and QuickBooks® 3. Specify the starting date and ending date of the transactions to be downloaded and imported into QuickBooks.

Warning Take care not to include dates that have already been imported into QuickBooks. QuickBooks offers no protection against importing duplicate transactions. 4. If desired, view the Book Keeping results a. Set "Date Grouping" to "Day" b. Deselect "Group Taxes" c. Click "Run Report" 5. Click "Download IIF". An IIF file name bookkeeping_YYYYMMDD_YYYYMMDD will be downloaded where the first "YYYYMMDD" is the starting date of the report and the second one is the ending date. 6.

Warning Make a backup of the QuickBooks file. Always do this before importing any IIF files.

7. In QuickBooks do File->Utilities>Import->IIF files.... Browse to the correct file and import.

QuickBooks Processing after the IIF import An IIF file has no facility for linking transactions to one another. As a result, after the import an "Open Invoices" report in QuickBooks will show both unused credits and uncleared debits for a Virtual Company customer from BillMax. In addition, if the Profit and Loss report is run on a Cash basis, now new sales will show up. The next steps are to manually provide the links. There are several steps for doing this. Do them until the "Open Invoices" report shows only credits or debits for a BillMax Virtual Company customer, but not both. • Visit each Payment that has not been used up and apply it to any open Invoices. • Visit each Invoice that has not been paid off, click "Apply Credits" and apply what credits that can be. • Go to "Customer->Receive Payments". Choose a BillMax Virtual Company Customer that still has credits to apply. Click "Discount & Credits..." Apply the credits. This may need to be done repeatedly.

Sales Tax Issues If doing Cash based accounting and paying Sales Tax on a Cash basis, then QuickBooks will accurately reflect Sales Tax to be paid when doing "Vendors=>Sales Tax->Pay Sales Tax". The amount will equal that reported in BillMax. However, if doing Accrual based accounting but paying Sales Tax on a Cash basis, then the possibility that the QuickBooks Sales Tax to pay will differ from the BillMax Sales Tax to pay. BillMax is correct and those values should be used.

Third Party References QuickBooks is a trademark and service mark of Intuit Inc., registered in the United States and other countries.

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BillMax Book Keeping and QuickBooks® Great Plains is a trademark and service mark of Microsoft Corp., registered in the United States and other countries.

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