Jump to content

Prefunding (Double Invoicing ?) - Accountant Worried!


Si

Recommended Posts

hi,

Sorry if this has been covered before. I mentioned it as a sidenote during another ticket thread started by someone else and only othellotech picked up on it. I don't think it went any furher and didn't want to hijack someone elses thread.

 

Anyway, please tell me if I'm wrong on this, but my accountant was concerned when I explained this, but maybe my understanding is incorrect:

 

When a customer pre-funds his/her account, they have an invoice raised for say £200.

 

However, then their hosting fees and domain renewal invoices are also raised.

 

So, lets say, over the next 3 months, they use up their £200 credit, the WHMCS system has actually only received £200, but has raised invoices for £400.

 

Pre-funding invoice = £200

Hosting Fee Invoice = £120

Domain Renewals Invoices = £80

Total = £400

 

Surely the pre-funding shouldn't be raised as an invoice?

 

Is that correct? or am I missing something?

 

Si

Link to comment
Share on other sites

Well from my understanding of the pre-funding, and please someone jump in here if I am wrong, but what happens is your client clicks on the "Add Funds" for £200. It created the invoice and the client is charged the appropriate amount of money. Once the invoice is considered paid the account is funded with £200 and you will see this reflected in the control panel. Now whenever an invoice is generated, it will auto debit from the £200 that has been funded and the invoice is instantly considered paid.

 

So in your example

 

Pre-funding invoice = £200

Hosting Fee Invoice = £120

Domain Renewals Invoices = £80

Total = £400

 

it would actually be

 

Pre-funding invoice = £200

Hosting Fee Invoice = £120

Domain Renewals Invoices = £80

Total = £0

 

It all equals out in the end. This is my understanding of the pre-funding, but I could be very mistaken as I have not taken my site live yet and I have not had to jump any hurdles.

 

I hope this helps!

 

Brett

Link to comment
Share on other sites

  • WHMCS CEO

It actually works out like this:

 

Pre-funding invoice = £200

Hosting Fee Invoice = £0

Domain Renewals Invoices = £0

Total = £200

 

If you notice, when you add credit to an invoice, the total amount due decreases until the amount due is nothing. And only ever will there be the income transaction for the credit addition invoice so there's only one transaction of income - no duplication.

 

Matt

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use & Guidelines and understand your posts will initially be pre-moderated