Invoicing system not compliant with established accounting practices

Frederick Hufkie shared this idea 3 years ago
Under Consideration

In our evaluation of BILLmanager 6.x we have encountered a major compliance problem with regard to the way invoices are generated.

The current mechanism for payments and invoice generation in BILLmanager works as follows:

a) Client adds funds --> an invoice for added funds is generated

b) Services gets renewed --> no invoices or other docs are generated

There are two problems with this behaviour:




The current behaviour is not compliant with commonly accepted accounting practices.

Especially in European countries, vendors must send a *receipt* (not a tax invoice) when funds are added (point 2 above) and then they must send a *tax invoice* for funds that have been effectively used.


Client adds EUR 100 in funds --> receipt for EUR 100

Client renews two services for a total of EUR 40 --> tax invoice for EUR 40


- It is important that the distinction between receipts and tax invoices is reflected in the numbering, i.e. both types should have their own sequential numbering without gaps. So for example we could have receipts {RC-12, RC-13, RC-14} and tax invoices {TI-12, TI-13, TI-14}, not {RC-12, TI-13, RC-14}.

- Also the layout should be different between receipts and invoices, in order to state clearly which kind of document it is (some countries require that the words "TAX INVOICE" appear in the documents' body in order to be considered valid, but that title shall not be printed on add funds receipts, of course).




The current behaviour is inefficient: BILLmanager generates a document for each payment, whereas it would be much easier for clients to receive just one cumulative invoice at the end of each month.




Our suggestion is that BILLmanager's behaviour is modified like this:

1. Client adds funds --> A receipt (not a tax invoice) for added funds is generated

2. Services gets renewed --> same as now; no invoices or other docs are generated

3. At the end of each month --> a *cumulative tax invoice* for the month is generated. For reference, we attached an example of such a document in ticket #10954552.

In terms of GUI:

- BILLmanager should list cumulative tax invoices under "Finance and documents" > "Invoices"

- Receipts for added funds should be listed under "Payments history" > Account credit: N payments > replace the "Download" link at the top right of the modal popup with a link on each row.