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Invoicing Recurring Products
Salesforce Billing invoices subscription products repeatedly over time. An order product's date fields and billing fields drive when and how frequently that order product is invoiced. (Salesforce Billing Managed Package)
Required Editions
| Available in: All Salesforce Billing Editions |
When a user, workflow, or invoice scheduler invoices an order, active order products with a next billing date on or before the invoice target date are included on the invoice. For more information on how Salesforce Billing calculates the next billing date, check out Understanding Next Billing Date.
All subscription products have a charge type of Recurring. When you invoice a recurring order product, the resulting invoice line represents a period of service from the invoice line's start date up through its end date. By default, the start date inherits the order product's next billing date, and the end date is one term of the billing frequency afterward. So, let's say you invoice a recurring order product with monthly billing frequency and a next billing date of 10/08/2018. The resulting invoice line has a start date of 10/08/2018 and end date of 11/07/2018.
Salesforce Billing uses a formula to calculate exactly how much is billed for a recurring order product. The result of this calculation is known as the order product’s billable unit price.
Billable Unit Price = [(Total Amount ÷ Prorate Multiplier)] ÷
Subscription Term] * Billing Frequency Months
- The first part of the formula takes the quote line’s net total, which is prorated, and divides it by the quote line’s prorate multiplier. This provides an unprorated total amount, or what it would cost if the customer purchased the product for exactly the length of its subscription term.
- Next, the formula divides that value by the order product’s subscription term (remember that the order product inherits the product’s subscription term.) This gives us a temporary price per month.
- Finally, Salesforce Billing accounts for billing frequency by multiplying the price per month by the number of months covered by a given billing frequency. For example, quarterly billing frequency would give a value of 3.
We now have a value for the amount we expect to bill a recurring order product on any given invoice. When you invoice this order product, its balance by default is equal to the billable unit price. If your order had partial periods or proration, Salesforce Billing then prorates the invoice line’s balance accordingly.
