Subscriptions
A subscription represents a customer's recurring purchase of a product or service. It allows you to bill customers at regular intervals, such as monthly or annually. One agreement can have multiple subscriptions. The subscriptions can have varying start and end dates, billing cycles and payment schedules.
Key features
- Automated billing: Automatically generate invoices at the specified intervals.
- Flexible billing cycles: Choose from various billing cycles, including monthly, quarterly, and yearly - or whatever you need.
- Custom pricing: Set custom prices for each subscription, including custom taxes.
- Proration handling: Automatically handle proration when subscriptions do not start at the beginning of the billing cycle.
Subscription lifecycle
- Creation: A subscription is created.
- Activation: The subscription becomes active on the specified start date.
- Billing: Invoices are generated and payments are processed according to the billing cycle.
- Renewal: The subscription renews automatically at the end of each billing cycle unless canceled.
- Cancellation: The subscription can be ended anytime.
Example use case
Consider a yearly subscription that starts in October. In the following setup we want the first invoice to cover the remaining part of the year, and subsequent invoices to cover full-year periods.
- Subscription start date: 1st of October 2024 (yearly billing)
- Next billing start date: 1st of January 2025
- Initial billing: Prorate (Period from 1st of October - 31st of December)
The invoices will reflect the time periods as indicated below.
