Understanding the billing balance is crucial in managing a member's account.
The most accurate record of billing balance can be seen on the Balance tab under the Billing Activity Summary.
Remember that the balance is the real-time calculation of the amount of money your client owes you and/or you owe your client.
You may go to the customer's profile and click on the blue billing icon and then click the Billing Activity Summary.
Up to date Balance
Ideally, the Balance should always be $0.00, this means the client's payment is up to date. The best way to verify that the contact is financially covering his/her debt with your facility is to see their balance as $0.00. This means healthy financial revenue from this contact to your location.
Past Due Balance
When a client is past due the balance will show in red and it means that this particular client owes money to the facility. This has a negative impact on your revenue and your financial income. It is important that you collect the past due money as soon as possible not to lose or postpone your revenue.
Past due Balance Pro-tip:
When there's a negative balance, the system will always use the incoming payment to fulfill the oldest past due invoice.
E.g.: Your client has a past due of $200 and this client purchase a membership for $150 dollars, the system will use the money to fulfill part of the $200 past due and the balance will remain $50 past due:
Let's imagine that the same client then purchases another membership for $100, now the balance is not going to be past due, but they will even have a positive credit in their balance for $50:
As you can see the past due balance is updating according to the income, a past due will be fulfilled by the income:
Exception to the rule:
In the event of automatic payment, the payment will be allocated to the intended invoice and not to the oldest past due balance. Only the manual added payment will be allocate to the oldest past due balance.
Credit Balance
A credit is a financial benefit that the facility provides the client, it can be a prize, gift card, birthday gift, etc. A credit can also be an invoice paid in advance by the client due to a cash payment made previous to the actual payment date, etc.
Credit Balance Pro-tip: Make sure to keep track of the credit on the balance to ensure that it is valid and that you are not losing any revenue.
E.g.: Let's say that your client got his/her CC stolen, while they wait to get the new one the transactions have to be paid by cash. Your client attends classes on Monday afternoon but their payments are scheduled to be charged on Friday, so on Monday, they pay the invoice for $75 on Friday by cash.
You can grant them credit on Monday and until Friday they'll have a positive balance:
