Click here for a sample Credit Cancels report (summary version)
Click here for a sample Credit Cancels report (detailed version)
Use this report to determine how many copies need to be deducted from your circulation because the subscriptions have not been paid for.
According to BPA audit rules, U.S. credit subscriptions may be counted as paid circulation up to six months from the date of the first issue served. International credit subscriptions may be counted up to nine months from the date of the first issue served.
ABC audit rules allow North American or West Indies credit subscriptions to be counted as paid circulation up to six months from the date of the first issue served (seven months for magazines). All other credit subscriptions may be counted as paid circulation for up to nine months from the date of the first issue.
VAC rules do not discuss credit cancels.
If payment is not received within the allotted time frame, credit subscription copies must be deducted from the qualified paid circulation for all copies served during the period.
Note: grace copies
If a bill-me renewal is received after grace issues are served for an order and the subscriber does not end up paying for the renewal, the grace issues are not deducted from the circulation.
Example:
The original order to a monthly publication expires in December 2000. 3 grace issues are served -- January 2001 through March 2001. In July 2001 a bill-me renewal for 12 issues is received. When the renewal is entered the 3 grace issues are rolled forward and the renewal order starts out with a term of 12 and 3 issues served.
The subscriber doesn't pay for the renewal but gets the July, August and September issues before he gets suspended and (later) cancelled. The order now shows that 6 issues were served. These were January, February, March (the grace issues) and July, August, September (the issues served after the renewal was entered).
The 'Credit cancels' report will show that the July, August and September issues should be deducted from the circulation. The detailed version of the report will show that 6 issues were served for the order, but 3 were grace issues from the prior order, so the net deduction is 6 - 3 = 3. QuickFill can only assume that the deductions should be for the most recent three issues.
Note: partially paid orders
If a partially paid order is canceled for nonpayment after a prorated number of issues have been served, the issues that were paid for are not deducted as credit cancels.
Example:
Let's say that a subscriber pays $100 for an order whose price is $120. After you enter the order, service begins and the subscriber is billed for the remaining $20. The $20 is never paid and the billing series eventually runs out. The 'Billing' update does not suspend or cancel the order because the subscriber actually paid for 10 out of the 12 issues. After serving the tenth issue the 'Issue labels' update finally cancels the order for nonpayment.
In this case, the 'Credit cancels' report will show that no issues should be deducted from the circulation. The subscription is canceled for nonpayment, but the subscriber paid for all of the issues that were sent.
Let's look at the same example again, except, this time let's say that the subscriber paid $105. After you enter the order, service begins and the subscriber is billed for the remaining $15. The $15 is never paid and the billing series eventually runs out. The 'Billing' update does not suspend or cancel the order because the subscriber actually paid for 10 (and a half) out of the 12 issues. After serving the eleventh issue the 'Issue labels' update finally cancels the order for nonpayment. (The 'Issue labels' update never cancels an order until the deferred income (cash) is less than or equal to zero.)
In this case, the 'Credit cancels' report will show that the last issue should be deducted from the circulation since it was only partially paid for.
Publication
Enter the code for the publication for which the report is to be run. You may also right click once in this field to select from a list of publication codes.
The summary version of the 'Credit cancels' report includes two sections. The first section lists the total number of copies that should be deducted from each issue broken down by classification'. Use this information to adjust the number of qualified copies served for each issue and the average circulation for the reporting period. The second section provides more information about the copies that need to be deducted, listing groups of subscriptions by their last issue served and providing the number of non-allowed issues served to that group and the number of subscriptions and copies (for multi-copy subscriptions).
The detailed version of this report also has two sections but replaces the second section with a detailed list of each order that is being reported as a credit cancel. For each order it tells what the order number is, the term of the order, the number of issues served and the number of grace issues that were served that were rolled forward from the prior order and thus need not be deducted from the circulation.
Issue range
These fields default to include the issues for the most recent audit period. (You can change the issue numbers by simply typing an issue number in them or right clicking once to select from a list of defined issues.)
Include orders that received any issues in the above range and that…
QuickFill's billing process normally goes through three stages: an early stage where issues are served in the expectation of payment, a second stage where the subscription is suspended and no issues are served but billing continues and a third and final stage where the order is cancelled for nonpayment and any remaining amount due is written off. Just where in this process an order should be considered to be a "credit cancel" is a little ambiguous, so QuickFill lets you decide. You can choose any or all of these options:
are canceled for nonpayment
This will select orders that have run the full course of the billing series and have been cancelled for nonpayment. These orders should clearly be counted as "credit cancels". In order to conform to the audit requirements you should make sure that your billing series does not run any longer than six months (seven months for ABC magazines).
are suspended for nonpayment
This will select orders that are no longer being served issues, but that continue to be billed. If payment is received the order will be reinstated and missed issues will be served (depending on the publication's reinstatement policy). This group of orders might be considered to be credit cancels if your billing series extends beyond the period allowed by the audit agency (see the rules at the top of this page).
remain unpaid and began service before:
This will select orders that remain unpaid after the specified period, regardless of their current status. Choose this option if you are uncertain whether your billing series meets the requirements of the audit agency. The date defaults to seven months prior to the current date for ABC-audited magazine publications and six months prior to the current date for ABC-audited business publications and BPA-audited publications.
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