To create RMR discounts, free trial periods, and to offset RMR lines entered in error, consider using negative RMR lines. Negative RMR lines can be entered in the same manner as positive lines by simply entering a negative number in the amount field.
Examples:
You are offering a discount on the first six months of a recurring charge. The total monthly amount of the RMR is 20.00, so a 20.00 RMR line is entered. The total amount of the discount is 5.00 so a negative RMR line is entered for -5.00. A cancelation date is put on the -5 line for six months in the future. When the recurring is run the two lines net to 15.00 for the first six months, then the negative line passes its cancelation date, and the 20.00 line is left to run by itself every month after that.
The above also works if you are giving away the first few months of recurring free. Just enter a negative RMR line for the total amount of the positive line and give the negative line a future cancelation date. The RMR will net to 0 until the cancelation date passes and then charging will begin.
A negative RMR line could also help if you find yourself with a positive RMR line that was entered in error and cannot be deleted. In this case you would cancel the positive RMR line, but even so it will still want to bill for one day. To make sure that one day charge doesn’t hit your customer, create a negative RMR line for the same amount and cancel it for the same day as the positive line. This way the two lines process together and net to 0.
Example of a 48.00 recurring line being discounted to 40.00 for the first 6 months.
When a negative RMR line is entered as a discount you may want to consider whether it should simply reduce your primary income account, or if you would like to track the discount separately in its own GL account. To simply reduce your income account, enter the RMR lines as shown above. To track the discount in a separate GL, a new GL account and new RMR item should be created. When the negative RMR line is entered select the new discount RMR item.
