Invoicing Gem - Sales & Payments In Your App

Sales & payments in your app Martin Kleppmann http://go-test.it http://yes-no-cancel.co.uk http://twitter.com/martinkl

Automated Cross-Browser Functional Testing “Selenium in the cloud”

http://go-test.it

Revenue model

You should be making one of these

We need more of these

We need more of these £

Your £1m business e.g. £42/mon × 12 mon × 2,000 customers

Your £1m business e.g. £42/mon × 12 mon × 2,000 customers Automation!

Ruby Invoicing Framework So… youʼve spent many nights developing your awesome application. Itʼs coming together nicely, and youʼve showed it to your friends, who got very excited about it too. In fact, people love your app so much that they are willing to pay you money to use it. Great news! Keeping it simple, you start taking payments trough PayPal or even accept cheques through the post. Later you maybe integrate with the API of a more ﬂexible credit card handling provider. Money is coming in – even better news! The problems become apparent when you try to turn your app into a business. Suddenly everything becomes a lot more complicated. You need to start thinking about ugly things like tax and you need to pay an accountant to sort out the paperwork for you. You need to start bookkeeping, a prospect which gives you the shivers. Maybe some of your customers are awkward, accepting billing only in their own currency or requiring a special tax status. Itʼs all a bit of a mess, and as you grudgingly start ploughing through the Wikipedia page on “credits and debits”, you wish that you could just get the money and leave it at that. The missing link between your app and the money Enter the Ruby Invoicing Framework RubyGem, or invoicing gem for short. Itʼs a collection

Ruby Invoicing Framework ic in g/ /invo m So… youʼve spent many nights developing your awesome application. Itʼs coming together co nicely, and youʼve showed it to your friends, who got very excited about it too. In fact, u b. people love your app so much that they are willing to pay you money to use it. Great news! t.gith Keeping it simple, you start taking payments trough PayPal or even accept cheques p through the post. Later you maybe integrate with the API of a more ﬂexible credit card //e handling provider. Money is coming in – even better news! tt p: The problems become apparent when you try to turn your app into a business. Suddenly h everything becomes a lot more complicated. You need to start thinking about ugly things like tax and you need to pay an accountant to sort out the paperwork for you. You need to start bookkeeping, a prospect which gives you the shivers. Maybe some of your customers are awkward, accepting billing only in their own currency or requiring a special tax status. Itʼs all a bit of a mess, and as you grudgingly start ploughing through the Wikipedia page on “credits and debits”, you wish that you could just get the money and leave it at that. The missing link between your app and the money Enter the Ruby Invoicing Framework RubyGem, or invoicing gem for short. Itʼs a collection

Richard Messenger, http://www.ﬂickr.com/photos/richardmessenger/2626927255/

Production use

A solid foundation for building commercial web apps

I’m not an accountant

Jargon

Jargon (as far as we can avoid it)

Installing $ gem install invoicing invoicing_generator $ script/generate invoicing_ledger billing --currency=GBP $ rake db:migrate

Model classes module Billing class Invoice < LedgerItem acts_as_invoice end class CreditNote < LedgerItem acts_as_credit_note end class Payment < LedgerItem acts_as_payment end end

Ledger items

Ledger items • Invoice: “you owe us money”

Ledger items • Invoice: “you owe us money” • Credit Note: “oops, billed you too much”

Ledger items • Invoice: “you owe us money” • Credit Note: “oops, billed you too much” • Payment: “thanks for the cash”

acts_as_ledger_item module Billing class LedgerItem < ActiveRecord::Base acts_as_ledger_item has_many :line_items, :class_name => 'Billing::LineItem' belongs_to :sender, :class_name => 'Company' belongs_to :recipient, :class_name => 'Company' end end

Fine, but so what?

http://www.ﬂickr.com/photos/26614375@N00/381941029/

Avoid writing boring code

Displaying an invoice class BillingController < ApplicationController def document @document = Billing::LedgerItem.find(params[:id]) respond_to do |format| format.html { render :text => @document.render_html, :layout => true } format.xml { render :xml => @document.render_ubl } end end end

Best practices

Your investors will want to see your accounts

What accountants need to know • Exact dates and periods of invoices & payments • Reconciling bank statements • Details of VAT & other tax

http://www.ﬂickr.com/photos/8704943@N07/3491779722/

Dates & periods create_table "ledger_items" do |t| t.string "type" t.integer "sender_id" t.integer "recipient_id" t.string "currency", :default => "GBP", :null => false t.decimal "total_amount", :precision => 20, :scale => 4 t.decimal "tax_amount", :precision => 20, :scale => 4 t.string "status", :limit => 20 t.string "description" t.datetime "issue_date" t.datetime "period_start" t.datetime "period_end" t.datetime "created_at" t.datetime "updated_at" end

Invoice (“bill”) ≠ Payment (“receipt”)

Invoice ≠ Payment Your Sales Account Customer Account Your Bank Account

Invoice ≠ Payment Your Sales Account – Invoice + Customer Account Your Bank Account

Invoice ≠ Payment Your Sales Account – Invoice + Customer Account – Payment + Your Bank Account

Account statement No. Date Description Amount 100 2009-06-01 Subscription for June £115.00 101 2009-06-24 Referral fee – thanks for inviting 3 friends –£10.00 102 2009-06-30 Credit card payment including PAYG credit –£200.00 Current account balance (GBP) –£75.00 Charges not yet invoiced Description Amount Pay As You Go charges so far this month £23.45

Account statement Invoice No. Date Description Credit Note Amount 100 2009-06-01 Subscription for June Payment £115.00 101 2009-06-24 Referral fee – thanks for inviting 3 friends –£10.00 102 2009-06-30 Credit card payment including PAYG credit –£200.00 Current account balance (GBP) –£75.00 Invoice Charges not yet invoiced (with status=open) Description Amount Pay As You Go charges so far this month £23.45

Account statement class BillingController < ApplicationController def statement scope = Billing::LedgerItem. exclude_empty_invoices. sent_or_received_by(params[:id]). sorted(:issue_date) @in_effect = scope.in_effect.all @open_or_pending = scope.open_or_pending.all @summary = Billing::LedgerItem.account_summary( params[:id]) end end

Thomas Hawk, http://www.ﬂickr.com/photos/thomashawk/2317826708/

Your Sales Account VAT Account Customer Account Your Bank Account

Your Sales Account VAT Account – – Invoice + Customer Account Your Bank Account

Your Sales Account VAT Account – – Invoice + Customer Account – Payment + Your Bank Account

Your Sales Account VAT Account – – + Invoice + VAT Customer Account Return – Payment + – Your Bank Account

Urgh. (And we’ve not even started talking about EU VAT regulations yet.)

VAT made easy create_table "ledger_items" do |t| t.string "type" t.integer "sender_id" t.integer "recipient_id" t.string "currency", :default => "GBP", :null => false t.decimal "total_amount", :precision => 20, :scale => 4 t.decimal "tax_amount", :precision => 20, :scale => 4 t.string "status", :limit => 20 t.string "description" t.datetime "issue_date" t.datetime "period_start" t.datetime "period_end" t.datetime "created_at" t.datetime "updated_at" end

VAT made easy create_table "ledger_items" do |t| t.string "type" t.integer "sender_id" t.integer "recipient_id" t.string "currency", :default => "GBP", :null => false t.decimal "total_amount", :precision => 20, :scale => 4 t.decimal "tax_amount", :precision => 20, :scale => 4 t.string "status", :limit => 20 ☺ t.string "description" t.datetime "issue_date" t.datetime "period_start" t.datetime "period_end" t.datetime "created_at" t.datetime "updated_at" end

VAT made easy # New in invoicing gem version 0.3 class MyProduct < ActiveRecord::Base acts_as_taxable :price, :tax_logic => Invoicing::Countries::UK::VAT.new end p = MyProduct.new :price => 10 p.price_with_tax_info # => "£11.50 (inc. VAT)" p.price_taxed = 23.00 p.price.to_s # => "20.0"

Paolo Màrgari, http://www.ﬂickr.com/photos/paolomargari/3050305454/

Overview of your customers

Sales and purchases ledger Sale Purchase Name Currency Sales Purchases Balance receipts payments A. N. Other GBP £400.00 £0.00 £400.00 £0.00 £0.00 Some Customer GBP £0.00 £395.00 £0.00 £250.00 –£145.00 Some Customer USD $2,782.31 $0.00 $2,160.61 $0.00 $621.70 Widgets Ltd GBP £229.63 £12.00 £300.00 £0.00 £82.37

Sales/purchase ledger @summaries = Billing::LedgerItem.account_summaries(params[:id]) @summaries.each_pair do |id, by_currency| by_currency.each_pair do |currency, data| puts "Sales: #{data.sales_formatted}" puts "Purchases: #{data.purchases_formatted}" # ... end end

What else?

Martin Kleppmann, http://www.ﬂickr.com/photos/martinkleppmann/3131198770/

¥1,300 Martin Kleppmann, http://www.ﬂickr.com/photos/martinkleppmann/3131198770/

Currency formatting

Currency formatting inv = Billing::MyInvoice.new :currency => 'JPY' nov = Billing::LineItem.new( :description => 'November charge', :net_amount => 10, :tax_point => '2008-11-30') inv.line_items << nov; inv.save! nov.amount_formatted # => "¥10" inv.currency = 'GBP' nov.amount_formatted

Nothing is constant

VAT change 1/12/09 dec = Billing::LineItem.new( :description => 'December charge', :net_amount => 10, :tax_point => '2008-12-01') inv.line_items << dec nov.amount_taxed_formatted # => "£11.75" dec.amount_taxed_formatted # => "£11.50"

Johnny Vulkan, http://www.ﬂickr.com/photos/26614375@N00/381941029/

Integrating with payment gateways http://activemerchant.org

Open standards

Displaying an invoice class BillingController < ApplicationController def document @document = Billing::LedgerItem.find(params[:id]) respond_to do |format| format.html { render :text => @document.render_html, :layout => true } format.xml { render :xml => @document.render_ubl } end end end

Displaying an invoice class BillingController < ApplicationController def document @document = Billing::LedgerItem.find(params[:id]) UBL? WTF? respond_to do |format| format.html { render :text => @document.render_html, :layout => true } format.xml { render :xml => @document.render_ubl } end end end

UBL = “Universal Business Language” OASIS Open Standard

UBL: If you’re working with invoices and purchase orders and that kind of stuff (and who isn’t?) [...] Look no further. @timbray: “Don’t Invent XML Languages” http://tr.im/NoNewXML

UBL Example (1/3) <ubl:Invoice xmlns:ubl="..." xmlns:cbc="..." xmlns:cac="..."> <cbc:ID>1</cbc:ID> <cbc:IssueDate>2008-06-30</cbc:IssueDate> <cac:InvoicePeriod> <cbc:StartDate>2008-06-01</cbc:StartDate> <cbc:EndDate>2008-07-01</cbc:EndDate> </cac:InvoicePeriod> <cac:AccountingSupplierParty> ... </cac:AccountingSupplierParty> <cac:AccountingCustomerParty> ... </cac:AccountingCustomerParty> ...

UBL Example (2/3) <cac:TaxTotal> <cbc:TaxAmount currencyID="GBP"> 15.00 </cbc:TaxAmount> </cac:TaxTotal> <cac:LegalMonetaryTotal> <cbc:TaxExclusiveAmount currencyID="GBP"> 100.00 </cbc:TaxExclusiveAmount> <cbc:PayableAmount currencyID="GBP"> 115.00 </cbc:PayableAmount> </cac:LegalMonetaryTotal>

UBL Example (3/3) <cac:InvoiceLine> <cbc:ID>42</cbc:ID> <cbc:LineExtensionAmount currencyID="GBP"> 100.00 </cbc:LineExtensionAmount> <cac:Item> <cbc:Description> Subscription for my fantastic app </cbc:Description> </cac:Item> </cac:InvoiceLine> </ubl:Invoice>

Designing XML Languages is hard. It’s boring, political, time- consuming, unglamorous, irritating work. @timbray: “Don’t Invent XML Languages” http://tr.im/NoNewXML

Interoperability

OAccounts Sage Invoicing gem MYOB Payment provider KashFlow Shopping cart Xero Custom reporting

OAccounts Sage Invoicing gem MYOB Payment provider OAccounts KashFlow Shopping cart Xero Custom reporting

OAccounts = UBL + XBRL-GL + REST + Conventions + Documentation + Collaboration + Open source implementation

OAccounts = UBL + XBRL-GL ts. REST+ or g/ + Conventionsco un + ://o ac ht tp Documentation + Collaboration + Open source implementation

Image credits Screenshots of: http://basecamphq.com/signup, http://freshbooks.com/pricing.php, http://fogcreek.com/FogBugz/, http://github.com/plans, http://lessaccounting.com/pricing, http://freeagentcentral.com/pricing, http://huddle.net/huddle-price-plans/, http://twitter.com/bensummers/status/1199722134, http://oneis.co.uk/, http://bidforwine.co.uk Building site: Richard Messenger, http://www.flickr.com/photos/richardmessenger/2626927255/ Tim Bray: http://en.wikipedia.org/wiki/File:Tim_Bray.jpg Pile of money: Johnny Vulkan, http://www.flickr.com/photos/26614375@N00/381941029/ Astronomical clock: magro_kr, http://www.flickr.com/photos/8704943@N07/3491779722/ Tax Service: Thomas Hawk, http://www.flickr.com/photos/thomashawk/2317826708/ Man in a shop: Paolo Màrgari, http://www.flickr.com/photos/paolomargari/3050305454/ Hands full of money: Marshall Astor, http://www.flickr.com/photos/lifeontheedge/2672465894/

Thank you! Martin Kleppmann http://go-test.it http://yes-no-cancel.co.uk http://twitter.com/martinkl

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Invoicing Gem - Sales & Payments In Your App

by Martin Kleppmann on Jul 23, 2009

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