🌟Setting up a subscription
Last updated
Last updated
Creating subscriptions in Plock only takes a few minutes, even for the most advanced business models. In this article, we will show you how to setup a subscription for a customer who has purchased a software licence for an HR tool, in addition the the fixed fee license the customer will be charged for number of users managed in their account.
Plock tip: To reduce my need for working capital, the license fee is invoiced in advance at the start of the billing period. Similarly, the consumption based product I choose to package with a committed minimum number of users, which is invoiced in advance at the start of the billing period. Any consumption of Users exceeding the committed level is invoiced at the end of the billing period.
In the Subscription page, select Create Subscription
Select the start date of the subscription. You can start a subscription:
Immediately, the default value
In the future, if you want to schedule a subscription for a later start date
The end date is by default set to No End Date, meaning it continues until further notice. In this example we have made it a 1 year subscription duration. A year from now it requires renewal.
Select how often you want to charge the customer, invoice interval. You can select between:
Monthly, the default value. Invoices are sent each calendar month.
3 months, invoices are sent every 3 months.
6 months, invoices are sent every 6 months.
Annual, invoices are sent every year.
Custom, define your own tailored invoicing interval. Like every second month.
Select the products and corresponding prices that have been agreed upon in the contract with the customer. The first product, Software License, only has one price plan in this example which we select.
The customer has been offered a monthly license fee of 450 eur. Instead of creating a new price plan, we apply a rebate of 10% for this product item. We also select the second product, Users. Which is a usage based product, charged for based on the consumption.
To maximise the positive cash flow impact, we select the price plan that which gives the customer a lower price per user in return for committing to a minimum volume of users on a monthly basis.
It's common when buying digital B2B services that the customer needs to pay a one-off fee for work connected to getting the customer up and running. Or you simply need to invoice a customer for a one-off job in the middle of a subscription period.
In Plock you can add a on-off fee with a couple of clicks. Choose to invoice this amount immediately or add to the next invoice.
The first 2 invoices are created the same second you selected Create Subscription.
