Movies and TV shows, meal boxes, flowers, music, or storage space subscription services sold online are on the rise. People and businesses are increasingly shifting from buying products to subscribing to services.
Settings
If you're also using subscriptions, you first need to properly configure the basics in Simplicate. Go to Settings > Projects > Subscriptions.
Timing of sending subscription invoices
Invoice cycle
You determine once (i.e., for all customers the same way) whether you want to invoice subscription invoices in advance or in arrears.
In advance
The subscription invoice is always generated (prepared) on the first day, equal to the start date of the subscription. You still always decide when to actually send the invoice.In arrears
The subscription invoice is always generated (prepared) the day after the last day of the cycle. You still always decide when to actually send the invoice.
Note: Adjusting this setting affects all newly generated subscription cycles. So even for subscriptions with previously invoiced cycles, the new cycles will follow the updated setting.
Always invoice subscriptions on the first day of the cycle
You determine once (i.e., for all customers the same way) whether you want to invoice subscription invoices on the first day of the cycle.
Yes
When the start date of the subscription is not the first day of the cycle, the first invoice will be calculated over a partial period.
Example:
A subscription (monthly cycle) has a start date of September 14. In this example, the first invoice will cover the period from September 14 to September 30 and then automatically switch to the monthly cycle: October 1–31, November 1–30, etc.
No
The subscription invoice is always generated on the subscription start date.
Example:
A subscription (monthly cycle) has a start date of September 14. In this example, the first invoice will cover the period from September 14 to October 13. This same pattern will be used for each month: October 14–November 13, November 14–December 13, etc.
Note: Changing this setting only affects subscription services created after modifying the setting.
Manually or automatically generate subscription invoices
Because the subscription invoice is automatically generated in the invoice module, you can choose whether to automatically add the invoice to billables or to have it prepared as a draft invoice.
If you want to send your subscription invoices automatically each month (or other cycle) with one click and don’t want to worry about them, we recommend having the subscriptions automatically prepared as draft invoices. Choosing to add to billables is mainly useful if you also want to add other services (based on post-calculation and/or fixed price) to the subscription invoices.
Yes
Subscription invoices will be prepared under draft invoices.No
Subscription invoices will be added to billables.
Available cycles
Check the cycles you want to use.
Monthly
Quarterly
Semi-annually
Annually
Automatic difference invoices
If you've sent a subscription invoice and you change the quantity or price during that period, a difference invoice can be automatically generated based on the settings below.
Automatically generate difference invoices
Yes
No
Trigger for difference invoice
Quantity
Price
Both
Positive and/or credit difference invoices
Positive difference invoice
A difference invoice is generated only if you increase the quantity or price.Credit difference invoice
A difference invoice (credit invoice) is generated only if you decrease the quantity or price.Both
Calculation method for an incomplete subscription cycle
If you’ve created a subscription and the end date is before the last day of the cycle, a correct invoice will be generated automatically.
Example: You’ve created a yearly subscription (standard cycle is January 1–December 31 and you’ve set “Always invoice subscriptions on the first day of the cycle” to yes) with a start date of June 1. An invoice will now be generated for the period from June 1 to December 31. The amount can be calculated in two different ways:
Days
Calculation: 213/365 days * price.Months
Calculation: 7/12 months * price.