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Subscription Items

Billing Automation

Subscriptions include items. They represent the products to be charged and will figure as invoice line items on the created invoices.

Depending on the nature of the product, you can define a specific price model or billing type for an item.

  • Recurring: The item is billed with the given amount in each invoice run.
  • One-Time: The item is billed only once. After the item has been invoiced and the corresponding invoice has been finalized, JustOn sets its status to Inactive so it will not be included in subsequent invoice runs.
  • Transactional: There is no quantity defined for the item. Instead, the information (quantity or quantity + price) is provided by usage data that match the subscription item.
  • Recurring Prorated: The item is billed with the given amount in each invoice run, with support for the partial calculation of months defined as the billing unit. Every whole month in the billing period is counted as one, whereas a part of a month is calculated as Days / NumberOfDaysInThisMonth.
  • Recurring Prorated AVG: This is a variant of the Recurring Prorated billing type with a different billing factor calculation. With Recurring Prorated AVG, JustOn calculates the billing factor the same way as Salesforce CPQ with a subscription prorate precision of Monthly + Daily (see Subscription Prorate Precision in the Salesforce Help).

Managing Subscription Items

Item-Specific Billing Periods

For recurring subscription items (with the billing type set to Recurring), the following settings control the billing recurrence:

Field API Name Description
Billing Period BillingPeriod__c Defines the time interval (in days, months or years) after which the item is considered in the invoice run
Billing Unit BillingUnit__c Defines the time unit for the billing period to be displayed on the invoice (Day, Month or Year) and which is used for the price calculation of the billing period
Next Service Period Start NextInvoice__c Specifies the date of the next billing date for that item. If no value is defined, it will be substituted by the maximum of the invoice run start date, subscription start date or item start date. When the invoice is set Open, it is incremented to the current invoice line item's
service period end date + 1 day

For the resulting invoice line items, there are:

Field API Name Description
Billing Factor BillingFactor__c Factor resulting from the billing period and the billing unit that is applied to the invoice line item calculation. The billing unit Month combined with the billing period 3, for example, results in a billing factor of 3, that is, the item is invoiced every three months with the price multiplied by three.
JustOn recommends to include the billing factor in the invoice template through adding the field Billing Factor to the invoice line item table. For details, see Adjusting Invoice Line Item Table.
Billing Unit BillingUnit__c Defines the time unit for the billing period to be displayed on the invoice (Day, Month or Year) and which is used for the price calculation of the billing period
How does JustOn determine the billing behavior for recurring items?

Generally, the Next Service Period Start specifies a recurring item's next invoice date. Be aware of the following specifics with respect to this field:

  • Initially, that is, after a new item has been created, Next Service Period Start is empty.
  • If no value is set (manually), JustOn will use the maximum of the invoice run start date, subscription start date or item start date when creating an invoice line item from this item.
  • Once the relevant invoice is finalized, the value is set to the invoice line item's Service Period End + 1 day (where the service period end is calculated as follows: Next Service Period Start + Billing Period - 1 day).
  • If the relevant invoice is canceled, Next Service Period Start is cleared.

We recommend to keep JustOn's functionality with respect to Next Service Period Start unaltered, that is, to not customize the field's behavior.

When migrating external data to JustOn, it may make sense to set Next Service Period Start to the next service period start.

In addition, there are two settings that control the subsequent billing behavior for recurring items: The billing period specifies the interval after which an item is considered in the invoice run, and the billing unit is the time unit applied for this period. Based on this data, JustOn determines the billing factor, which is then applied to the resulting invoice line item – as a multiplier for the specified price.

The billing unit Year combined with the billing period 1 results in a billing factor of 1, that is, the item is invoiced once a year with the specified unit price.

The billing unit Month combined with the billing period 3 results in a billing factor of 3, that is, the item is invoiced every three months with the price multiplied by three.

The billing unit Month combined with the billing period 3 results in a billing factor of 3, and with an item quantity of 2, the item is invoiced every three months with the price multiplied by six.

The billing unit Day combined with the billing period 10 results in a billing factor of 10, that is, the item is invoiced every ten days with the price multiplied by ten.

For the subscription item to be considered in the invoice run, the item's next invoice date and the subscription's start date must be within the invoice run period.

How to control the service period of invoices and invoice line items?

JustOn automatically determines the service period of an invoice based on various conditions:

Generally, the earliest service period start date of all included invoice line items defines the service period start of the invoice. Consequently, the latest service period end date of all included invoice line items defines the service period end of the invoice.

Invoice Service Period Condition
Start The earliest (minimum) service period start date of all invoice line items.
End The latest (maximum) service period end date of all invoice line items.

The dates are recalculated when invoice line items are inserted, updated or deleted. Empty date fields on line items are ignored.

If set, the subscription end date forces the service period end of the invoice.

With respect to invoice line items, the billing type of the item usually determines how the service period is calculated.

Item Billing Type Service Period Start/Service Period End
One-Time The start date/end date of the corresponding item, or, if not available, the start date/end date of the invoice run period
Recurring The start date/end date of the invoice run.
Recurring with Billing Factor Start date: Next Service Period Start
End date: Next Service Period Start + Billing Period - 1 day
Transactional Start date: earliest (minimum) service period start date of the transactions
End date: latest (maximum) service period end date of the transactions

For recurring items, the start date and end date set as the invoice run period usually represent their service period. If, however, JustOn determines a billing factor (as given by a billing period and a billing unit), the service period start of the invoice line item is set using the subscription item's Next Service Period Start field. The service period end is then calculated as follows: Next Service Period Start + Billing Period - 1 day.

If Next Service Period Start is not set, JustOn uses the invoice run start date instead.

Other settings that force an item's service period end include:

  • the subscription item's activation end date, and
  • the end date of the last price tier defined for the subscription item.

Using the custom placeholders ServicePeriodStart and ServicePeriodEnd, you can display the items' service period in the invoice PDF. For details, see Adjusting Invoice Line Item Table.

Defining Item-Specific Billing Periods

Billing Period Synchronization

For recurring subscription items, you can set up JustOn to synchronize the billing period to start with

  • the start of the next year (for a billing period of 12 months),
  • the start of the next fiscal year (for a billing period of 12 months), or
  • the start of the next month (for a billing period of one month and with the billing unit Day).
  • the start of the next quarter
  • the start of the next fiscal quarter
  • the start of next half year
  • the start of next fiscal half-year period

Using the Sync With option adjusts the invoicing cycle to the defined period. The remainder of the billing period, that is, the rest of days or months until the defined sync period starts, is calculated partially.

Assume the following example configuration:

Record Field Value
Item Billing Type Recurring
Next Service Period Start empty
Billing Period 12
Billing Unit Month
Sync With Start of next year
Invoice Run Period Start 2016-09-01
Period End 2016-09-30

This will result in the following invoice line item data:

Field Value
Service Period Start 2016-09-01
Service Period End 2016-12-31
Billing Factor 4
Billing Unit Month

When setting the corresponding invoice to Open, the Next Service Period Start field of the item is set to 2017-01-01, synchronizing the item billing period with the calendar year.

Synchronizing Recurring Items

Item-Specific Billing Practice

For non-transactional subscription items (with the billing type set to Recurring, Recurring Prorated, Recurring Prorated AVG, One-Time or Minimum Fee), JustOn allows for defining the preferred billing time – either as soon as the the item service period coincides with the invoice run period, or at the end of the service period. To cover this requirement, you use the field Billing Practice on the item, selecting one of the following picklist values:

Value Description
Invoicing in advance Makes JustOn bill the item as soon as possible, that is, when the item service period coincides with the invoice run period. This is the default setting, and is also applied when the field is empty.
Invoicing in arrears Makes JustOn bill the item at the end of its service period, that is, when the service period end date of an item is before the invoice run period end date.
Invoicing in arrears requires at least one of Start Date or Next Service Period Start to be set.

Info

The billing practice support is available as of JustOn 2.58.

For example, assume a subscription with the following item configuration:

Field Value
Billing Unit Month
Billing Period 3
Next Service Period Start 2019-01-01

This item has a service period of three months and is to be billed every three months.

Now assume a monthly invoice run. Consider the resulting invoice line item for the different billing practices:

Invoice Run Period Invoice Line Item:
Invoicing in Advance
Invoice Line Item:
Invoicing in Arrears
2019-01-01 2019-01-31 2019-01-01 2019-03-31 -
2019-02-01 2019-02-28 - -
2019-03-01 2019-03-31 - 2019-01-01 2019-03-31
2019-04-01 2019-04-30 2019-04-01 2019-06-30 -

As you see, in arrears delays the billing of the item: It will not be invoiced until an invoice run covers the last third of its service period.

Defining Item-Specific Billing Practice

Item-Specific Lead Time

For non-transactional subscription items (with the billing type set to Recurring, Recurring Prorated, Recurring Prorated AVG, One-Time or Minimum Fee), JustOn allows for defining a lead time (in months). This enables an item to be included in an invoice run before the actual service period of the item is reached.

Info

The lead time support is available as of JustOn 2.58.

Note

When defining a lead time, the following item information must be set:

  • Billing Unit
  • Billing Period
  • Start Date or Next Service Period Start

The Billing Type must be one of Recurring, Recurring Prorated, Recurring Prorated AVG, One-Time or Minimum Fee.

For example, assume a subscription with the following item configuration:

Field Value
Billing Type Recurring
Billing Period 1
Billing Unit Month
Next Service Period Start 2019-03-01
Lead Time 1

Now assume a monthly invoice run, starting with January (01 – 31). Consider the resulting invoice line item:

Invoice Run Period Invoice Line Item
Service Period Start
Invoice Line Item
Service Period End
January - -
February 2019-03-01 2019-03-31

With a lead time of one month, the invoice line item will be created one month before service period starts.

Defining Item-Specific Lead Time