You are here:
ERP Integration Architectural Considerations for Lead to Cash
When you evaluate Salesforce Billing as part of a lead-to-cash solution, consider the other systems necessary to perform billing functions such as payments and revenue recognition reporting. You’ll also need to define the scope in which you use Salesforce Billing to integrate with an ERP. (Salesforce Billing Managed Package)
Required Editions
| Available in: All Salesforce Billing Editions |
Important Evaluate object integration points and ERP-required data on a
business-by-business basis.
- Invoice and Invoice Line Record Data Generation
- The most critical lead-to-invoice integration point falls on the invoice and invoice line objects. These objects integrate with an ERP system, which then performs payments, adjustments, revenue recognition reporting, A/R, and financial reporting.
- The invoice and its related Salesforce records contain all the information needed to determine what the customer is charged, when payment is due, and what to recognize for revenue. The invoice also drives A/R and supports financial reporting. Salesforce Billing generates all relevant invoice data including dates, quantities, and totals for calculating tax and customer presentation. Salesforce stores this data and then passes it to the ERP system for actual data.
- For example, you could use Salesforce Billing for the creation of invoice and invoice line data, then send that information downstream to an ERP system for the next billing processes and balance management. In this scenario, Salesforce is the source of invoice charge information while the ERP system is the master for payments, adjustments, and the invoice and account balance.
- Tax Management
- Lead-to-Invoice solutions don’t require tax calculation in Salesforce. Salesforce Billing provides flexible options for calculating tax via Salesforce native tax, third-party tax integrations, or in the downstream ERP system.
- Salesforce’s native tax engine and third-party integrations calculate and apply tax during invoice posting. Salesforce Billing then sends the invoice lines downstream to the ERP for digital or printed presentation and distribution. Invoice lines are also sent to the general ledger.
- If you don’t calculate tax in Salesforce, Salesforce Billing sends invoice data downstream to the ERP for tax calculation. Tax information will not appear in Salesforce unless the integration sends it back.
- Invoice Presentation & Distribution
- The invoice presentation process takes Salesforce-generated invoice data and formats it into a digital or printed format for the customer. Like taxation, invoice presentation and distribution doesn’t need to happen in Salesforce. However, Salesforce can still support it using a third-party tool.
- Applied and Unapplied Payment Information
- Salesforce Billing provides flexible functionality for collecting payments and enriching that data for downstream systems. Payment records track important payment information such as payment type, amount of payment, date of payment, and payment account.
- When you record payments in Salesforce Billing, you’ll need to send the transaction
information downstream to the ERP/FMS system for GL and financial reporting. Salesforce Billing
contains four objects to consider for this integration.
- Payment
- The payment header record contains important information including payment status, balance, and financial details. Payment record information feeds the downstream GL.
- Payment Allocation (Invoice) and Payment Allocation (Invoice Line)
- Salesforce Billing creates a payment allocation record after a payment is allocated
toward an invoice or invoice line. The package’s Advanced AR setting determines whether the
allocation goes toward the invoice or invoice line records. Payment allocations show how
much of the payment header was allocated. You can use allocations to reconcile customer
balance information.
Note Advanced AR is a global setting, so only the payment allocation (invoice) or payment allocation (invoice line) will be used for a possible integration point. - Payment Allocation (Debit Note Lines)
- Salesforce Billing also makes allocation records for payment allocations performed on debit note lines. This information is not necessary for downstream integration, but you can use it to improve downstream processes and reporting.
- Invoice Adjustments - Credit Notes
- During the Salesforce Billing invoicing process, businesses often need to reduce invoice balances or cancel an invoice and recreate it. These changes can result from human error, customer concerns, or early-payment discounts. You’ll need to make these adjustments in Salesforce Billing to ensure accurate invoice balances and payment collections. You can use credit notes or Cancel & Rebill functionality for your invoice balance correction needs.
- When you make a credit note adjustment, you’ll need to send the ERP system necessary information for financial reporting and GL purposes. This information can include data on the credit note, credit note line, and credit note allocation objects.
- Invoice Adjustments - Debit Notes
- When you make a debit note adjustment, you’ll also need to send the ERP system necessary information for financial reporting and GL purposes. This information can include data on the debit note, debit note line, and debit note allocation objects.
- Invoice Adjustments - Refunds
- Salesforce Billing allows businesses to refund customers for previously collected payments or credit notes. With refunds, businesses can manage adjustments all the way through the billing process.
- After performing a refund adjustment, send the ERP system necessary information for financial reporting and GL purposes. This information can include data on the refund, refund line, and refund line (credit note line), and refund line (payment) objects.
Did this article solve your issue?
Let us know so we can improve!
