Sales Order and Sales Order Line records were covered in-depth during our November Office Hours. Download presentation
Every transaction in Fonteva starts with a Sales Order. Then, as new information is provided, Sales Orders may be converted to Invoices (2019R1 or earlier) or Invoice Sales Orders (20Spring and later). As payments are applied, the system uses the Sales Order and Line data to generate the Receipt and Receipt Line records and Transactions and Transaction Line (Ledger) records.
The first key setting is the Posting Entity. In Rapid Order Entry, the user simply decides how to proceed, but that decision sets a key field – Posting Entity – on the Sales Order record. If a user selects Invoice at this step, the system converts the Sales Order to an Invoice (or an Invoice Sales Order) to create different transactions.
When a sales order is converted to an invoice in Fonteva instances older than 20Spring, Fonteva will generate transactions for the Receivable and the Receipt (Payment). Keep in mind that the transactions are both linked to the Invoice, not the Sales Order anymore. Only Sales Orders that are processed with an Immediate payment or as a Proforma Invoice will have transactions linked back to them.
In instances that are 20Spring or newer, all Transactions are linked to the Sales Order, as the Invoice object has been removed.
Sales Orders with a Posting Entity of Receipt will show one set of Transactions. These transactions are created only when a receipt or credit memo is applied to the sales order. You can see in this sample; there is a transaction created for the payment and also for the revenue deferral. In this case, the related item is marked for deferral, and the record is configured to recognize the revenue monthly through the remainder of the membership term.
If you wanted to validate that these transactions are accurate, you’d go to the Sales Order Line record on the Sales Order.
The Sales Order line includes a link to the Item record, where the revenue accounts and deferral settings are, and the Subscription plan, where the term and proration settings are.
If the item is a subscription, the Sales Order line also includes the Subscription plan and membership term start and end date for the purchased membership. Once the Sales Order is officially paid, Fonteva uses these dates to create the appropriate Subscription and Term records.
So, for the sales order line above, you’d expect to see a membership created for just four months of the year – from September 2021 through December 31, 2021. That means that the related subscription plan (FON-1 Year Calendar) is set to end all memberships on December 31, no matter when the membership is purchased.
Some organizations configure the Subscription plan so that if a member joins towards the end of the year, they are automatically sold the rest of the current year and also a membership for the next full year. And Fonteva will let you decide if you want to give them the rest of the current year free or charge for those days. Look at the subscription plan record and update the Advanced Calendar Days field and the Advanced Calendar Free/Paid field.
In the example below, as soon as the date hits October 1, new members would pay for a 15-month membership (good through December 31, 2022), and they’d pay for the remaining three months of 2021.
If the Advanced Calendar Free/Paid setting is changed to Free, the new member would still get the 15-month membership, but they’d only pay for the 2022 year.
To review the membership record created due to the sales order, look to the Sales Order Line record. There is a related list for Memberships at the top of the Sales Order Line record.
This is just another excellent example of how easy it is to track back and see the different records that impact the Transaction and Transaction Line records we get for every single purchase in Fonteva.
In our next post, we’ll review Reporting on Transactions in Fonteva in-depth, explicitly dealing with Report types and why they are critical in pulling the correct data in your reports. Understanding reporting will be critical to effectively exporting transaction data to your finance system and reconciling data. Stay with us!
Is your organization ready to upgrade its Fonteva instance to take full advantage of Sales Orders? Contact us!