Understanding financial flow in TBN

Understanding financial flow in TBN


Understanding How Money Flows in TBN

A Practical Guide for Motorcoach Operators

TBN was designed to reflect how motorcoach companies actually conduct business.

Because operators serve different types of customers, there are two standard financial workflows supported in the system.

Understanding these workflows is essential when interpreting reports, reconciling financial activity, and answering common questions such as:
• Why are deposits not in AR aging?
• Why are some invoices $0?
• Why do some trips have invoices and others do not?
• How are taxes tracked?

This article explains how money flows through TBN so you can properly interpret financial reports and reconcile activity.

Two Types of Customers

Most operators work with two types of customers:

Customers Without Credit Terms (Prepaid Trips)

These customers pay before the trip occurs.
This is the most common workflow for charter transportation.

Examples include:
• Churches
• Private groups
• Sports teams
• Weddings
• Tour groups
• Most retail charter customers

Customers With Credit Terms (Post-Bill Trips)

These customers pay after the trip occurs based on agreed credit terms.
Examples often include:
• School districts
• Government agencies
• Corporate clients
• Contract transportation customers

TBN supports both workflows because both are common in the motorcoach industry.

Workflow 1: Prepaid Trips (No Credit Terms)


This is the standard charter workflow.
Step 1: Booking Is Created
When a booking is created, the system typically establishes:
• A deposit due date
• A final payment due date

These dates ensure the operator collects payment before the service occurs.

⸻

Customer Makes Payments

Customers make payments according to the schedule.

Examples include:
• Deposit payment
• Final payment
• Full payment at time of booking

Because the trip has not yet happened, these payments are recorded as:

Unearned Revenue

This means the company has collected the money but has not yet delivered the service.
This is standard accounting practice for prepaid services.

Trip Operates

Once the trip runs (based on either departure or return date), the service has been delivered and the revenue becomes earned.

Uninvoiced Trips Report

At the end of an accounting period, operators can use the Uninvoiced Trips Report to identify trips that:
• Have already run
• Have payments recorded
• Have not yet been invoiced

Many companies create invoices at this point for accounting documentation.

Because the customer already paid, these invoices are often $0.00.

Important Note

Notes
For prepaid customers, invoices are not required.

The financial lifecycle for these trips can be fully supported through:
• Bookings
• Payments
• Revenue recognition

Some companies choose to create invoices for documentation or accounting workflows, but this is optional.


Post-Bill Trips (Customers With Credit Terms)

Some customers operate under credit terms, meaning payment occurs after the service is completed.

⸻

Booking Is Created

The booking is created just like any other trip.
However, payment is not collected upfront.

Trip Operates

The transportation service is delivered.

Invoice Is Created

After the trip occurs, an invoice is created and sent to the customer.

At this point:
• Revenue is recognized
• The system creates an Accounts Receivable (AR) balance

Customer Pays Invoice

The customer pays within the agreed credit terms.

Examples include:
• Net 15
• Net 30
• Net 45

When the payment is received, it reduces the Accounts Receivable balance.

Understanding Accounts Receivable (AR)

Accounts Receivable reports only track unpaid invoices.

Because of this:
Notes
Deposits and Final payments collected before service for retail customers are not included in AR aging
Notes
AR aging only applies to post-bill customers who receive invoices before paying.

Unearned Revenue

Unearned revenue represents money collected before service is delivered.

Examples include:
• Deposits
• Final trip payments
• Fully prepaid charters

These funds are held as a liability until the trip occurs.
Once the trip runs, the revenue becomes earned.

Taxes in TBN

Taxes collected from customers are not revenue.
Taxes represent money collected on behalf of a tax authority and must be tracked separately from operational revenue.
TBN provides a dedicated report for this:

Taxes Charged Report

This report shows the total amount of tax collected from customers during a given period.

Using the Taxes Charged Report

The Taxes Charged Report should be used during reconciliation to determine:
• Total tax collected from customers
• Tax amounts associated with bookings and invoices
• Tax liability owed to government agencies

Separating tax from revenue ensures:
• Accurate financial reporting
• Correct tax liability tracking
• Clean reconciliation of operational revenue

Putting It All Together

Below is a simplified view of both workflows.

Prepaid Customers (No Credit Terms)

Booking Created
↓
Deposit Payment
↓
Final Payment
↓
Payments recorded as Unearned Revenue
↓
Trip Operates
↓
Revenue becomes Earned
↓
Optional: Invoice created for documentation
↓
Taxes tracked through Taxes Charged Report

Post-Bill Customers (Credit Terms)

Booking Created
↓
Trip Operates
↓
Invoice Created
↓
Revenue Recognized
↓
Accounts Receivable Created
↓
Customer Pays Invoice
↓
AR Balance Reduced
↓
Taxes tracked through Taxes Charged Report

9. Key Takeaways

When reviewing financial data in TBN, remember:
• Deposits and required prepayments are not Accounts Receivable
• AR aging only applies to unpaid invoices
• Prepaid trips do not require invoices
• Invoices are primarily intended for post-bill customers
• Taxes collected from customers are tracked through the Taxes Charged Report
• Unearned revenue represents prepaid services that have not yet occurred

Understanding these principles will make financial reconciliation and reporting in TBN significantly easier.


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