Edit

Share via

Managing contracts, subscriptions, and subscription lines

Contracts, subscriptions, and subscription lines are required for recurring billing.

Subscription lines in subscription billing describe the monetary content of agreements with customers and suppliers, and termination dates. They can only be created in a subscription. The subscription defines the essential information about the end user and the actual content, which is to be billed on a recurring basis.

Subscription contracts

Subscription contracts organize subscription lines for billing to customers and suppliers. If something is to invoice via a separate invoice, you can set it up via a separate contract. Subscription lines have either Customer or Vendor as Partners. Subscription lines with Customer go into customer subscription contracts, Subscription lines with Vendor go into vendor subscription contracts.

Overview of the key fields on customer subscription contracts lines and subscription lines

The following table explains key fields on the Lines FastTab of the Customer Subscription Contract page. The data in customer subscription contracts lines and corresponding subscription lines are always in sync.

Field Description
Subscription Line Start Date Describes the date from which the subscription line is valid and can be invoiced.
Next Billing Date Specifies the due date of the next billing. The date is automatically recalculated during the billing proposal. The field isn't available if the line is invoiced to the subscription line end date.
Calculation Base Amount Specifies the basis of valuation of the subscription line. When you sell an item in subscription lines, the Calculation Base Amount field shows the value of the item.
Calculation Base % Specifies the percentage of the value in the Calculation Base Amount field to use to price the subscription line.
Price Calculates the price from the Calculation Base Amount and the Calculation Base %. It's always valid for the entire calculation base amount. For example, it's an annual price if a year is entered in the Billing Base Period field and a monthly price if a month is entered.
Discount % Specifies the percentage discount for the subscription line.
Discount Amount Specifies the discount applied to the subscription line.
Amount Shows the result of the price, discount, and quantity of the subscription line.
Billing Base Period Specifies the period to which the amount applies. For example, enter 1M if the amount refers to one month or 12M if the amount refers to one year.
Billing Rhythm Specifies the date formula that determines how often to invoice the subscription line. The date formula can be, for example, monthly, quarterly, or yearly.
Subscription Line End Date Specifies the date the subscription line ends and can no longer be billed. The date can be entered manually when a subscription line is terminated.
Planned Subscription Lines exist Indicates that a Contract renewal happened for this subscription line, but the renewal isn't yet valid because the subscription line isn't fully invoiced.
Cancellation Possible Until Specifies the last date for timely cancellation. The date is determined by the Initial Term, the Subsequent Term, and the Cancellation Period. A 12 month Initial Term with a three month notice period means that the due date for termination is nine months. A Subsequent Term of 12 months postpones the deadline by 12 months when the Cancellation Possible Until date is reached.
Invoicing via Specifies whether the subscription line is charged recurrently or only stores information about the sale (for example, for warranty extensions). Subscription lines with the Subscription Contract option can be called into contracts and billed on a recurring basis.

The following table explains key fields on other pages related to subscription lines, such as the Planned Subscription Lines and Sales Subscription Lines pages.

Field Description
Partner Specifies whether the subscription lines are meant for in accounts receivable or accounts payable. Accordingly, subscription lines can be added to customer or vendor subscription contracts and invoiced.
Subscription Contract No. Specifies the contract through which the subscription lines bill.
Initial Term Specifies the minimum term of the subscription lines. If the field is filled in and no Subsequent Term is entered, the Subscription Line End Date is automatically set to the end of the initial term. Note: By default, this field is hidden. You might need to personalize the page to add it. To learn more, go to Personalize your workspace.
Subsequent Term Specifies the duration of the automatic extension after the initial term. It also determines how often to update the Cancellation Possible Until and Term Until fields. If the field is blank, and the initial term or the notice period are set at the same time, the Subscription Line End Date is automatically set to the expiration date of the initial term or the notice period.

Invoice discounts

You can grant a flat discount (invoice discount) for the entire contract permanently or for a limited period. You can use this grant, for example, if the customer changes the license model or you agree to a permanent discount on the subscription line.

The discount can only be defined in Subscription package​ line templates​ and Subscription package lines​. Amounts for subscription packages that allow discounts act as discounts in billing. The process of creating a subscription and billing is identical to the established processes. When you create the billing proposal via Recurring billing, billing lines created for contract lines with discounts are created with a negative quantity and therefore a negative amount. The discount amount applies when posting documents.

Note

A subscription package line in which an invoice discount is defined can only be assigned to subscription items (Subscription Item selected as Subscription Option on the Item Card page).

Invoice discounts are applicable to both customer and vendor subscription contracts. They're also used in credit memos and contract deferrals.

Customer subscription contracts
Vendor subscription contracts