Subscription Management

Table

Key points

• • Install **Sale Subscription** module (sale_subscription)

• • Set up automatic payment methods (credit card, bank transfer)

• • Configure email templates for renewal notifications

• • Set up access rights for Subscription Manager group

• • Configure accounting journal for recurring revenue

Steps

• 1. Go to **Sales → Products → Products**

• 2. Create new product or edit existing one

• 3. In **General Information** tab, select **Product Type = Service**

• 4. Enable **Recurring** option

• 5. Set **Recurring Period**: Daily, Weekly, Monthly, Yearly

• 6. Enter **Recurring Price** (price per cycle)

• 7. Configure **Invoicing Policy**: Prepaid or Postpaid

• 8. Set **Trial Period** if needed (e.g., 14 days free)

• 9. Save product

Steps

• 1. Go to **Sales → Subscriptions → Subscriptions**

• 2. Click **Create** to create new subscription

• 3. Select **Customer**

• 4. Add **Subscription Products** to order lines

• 5. Set **Start Date**

• 6. Configure **Recurring Period**

• 7. Select **Pricelist** if applicable

• 8. Set **Payment Terms**

• 9. Click **Confirm** to activate subscription

Table

Steps

• 1. Go to **Sales → Configuration → Settings**

• 2. In **Subscriptions** section, enable **Automatic Renewal**

• 3. Set **Renewal Reminder** (days before expiry to send email)

• 4. Configure **Payment Method** for auto-renewal (credit card, SEPA)

• 5. Set **Grace Period** (time after failed payment)

• 6. Configure **Retry Payment** (number of retry attempts)

• 7. Save configuration

Steps

• 1. Open subscription to modify

• 2. Click **Upsell** (upgrade) or **Downsell** (downgrade)

• 3. Select new product or change quantity

• 4. System automatically calculates **Prorated Amount**

• 5. Choose **Apply Immediately** or **Apply at Next Renewal**

• 6. Confirm changes

• 7. System creates credit note (downgrade) or additional invoice (upgrade)

Key points

• • Go to **Sales → Reporting → Subscriptions Analysis**

• • View **MRR** (Monthly Recurring Revenue) by month

• • Calculate **ARR** = MRR × 12

• • Analyze **New MRR** (from new customers)

• • Track **Expansion MRR** (from upsells)

• • Measure **Churn MRR** (lost from cancellations)

• • Calculate **Net MRR Growth** = New + Expansion - Churn

• • Export reports by **Customer**, **Product**, **Sales Team**

Steps

• 1. System auto-generates invoices per **Recurring Period**

• 2. Go to **Sales → Subscriptions → Subscriptions to Invoice**

• 3. View list of subscriptions needing invoices

• 4. Click **Create Invoices** for batch creation

• 5. Invoices created in **Draft** status

• 6. Confirm and send invoices to customers

• 7. Track payments in **Accounting → Customers → Invoices**

Steps

• 1. System auto-retries payment per **Retry Payment** config

• 2. If failed, sends reminder email to customer

• 3. Subscription moves to **Payment Failed** status

• 4. During **Grace Period**, customer retains access

• 5. After grace period, subscription becomes **Suspended**

• 6. Customer updates payment method

• 7. Click **Retry Payment** to try again

• 8. If successful, subscription returns to **In Progress**

Steps

• 1. Go to **Sales → Configuration → Subscription Templates**

• 2. Click **Create** to create new template

• 3. Name template (e.g., "Basic Plan", "Premium Plan")

• 4. Add **Products** to template

• 5. Set default **Recurring Period**

• 6. Configure **Trial Period**

• 7. Set **Pricing** and **Discounts**

• 8. Save template

• 9. When creating new subscription, select template for quick setup

Key points

• • Go to **Sales → Reporting → Subscriptions Analysis**

• • Filter by **Status = Cancelled**

• • Analyze **Churn Rate** = (Cancelled subscriptions / Total subscriptions) × 100%

• • View **Churn Reason** if configured

• • Analyze by **Product**, **Customer Segment**, **Sales Team**

• • Calculate **Revenue Churn** = Revenue lost from cancellations

• • Compare **Voluntary Churn** (customer-initiated) vs **Involuntary Churn** (payment failure)

• • Propose customer retention strategies

Steps

• 1. Customer logs into **Customer Portal**

• 2. Go to **My Account → Subscriptions**

• 3. View list of active subscriptions

• 4. View invoice and payment history

• 5. Download PDF invoices

• 6. Update payment method

• 7. Upgrade / Downgrade plan (if allowed)

• 8. Cancel subscription (if allowed)

Key points

• • Set up **trial period** to increase conversion rate

• • Configure **auto-renewal** to reduce churn from forgotten renewals

• • Send **renewal reminder** 7-14 days in advance

• • Set **grace period** of 3-7 days for failed payments

• • Use **subscription templates** to standardize plans

• • Track **MRR/ARR** monthly to measure growth

• • Analyze **churn rate** and cancellation reasons

• • Provide flexible **upsell/downsell** options

• • Integrate **payment gateway** supporting recurring payments

• • Automate **dunning process** for debt collection

Table

Key points

• • **How to create free trial?** In subscription product, set Trial Period (e.g., 14 days) and Trial Price = 0.

• • **Can I change billing cycle mid-term?** Yes, use Upsell/Downsell to change recurring period, system auto-calculates prorated amount.

• • **How can customers self-manage subscriptions?** Enable Customer Portal, customers can view, upgrade, downgrade, and cancel subscriptions online.

• • **What's the difference between MRR and ARR?** MRR is monthly recurring revenue, ARR = MRR × 12 (annual recurring revenue).

• • **How to handle mid-cycle cancellations?** Options: prorated refund, allow usage until end of cycle, or no refund (per policy).

• • **Can I create subscription from quotation?** Yes, add recurring products in quotation, confirmation auto-creates subscription.

• • **How to track churn rate?** Go to Subscriptions Analysis, filter Status = Cancelled, calculate % vs total subscriptions.

• • **Can I set discounts for subscriptions?** Yes, use Pricelist or Coupon/Promotion to apply discounts to recurring products.

• • **Does subscription integrate with accounting?** Yes, auto-creates journal entries for deferred revenue per cycle.

• • **How to send renewal reminders?** In Settings → Subscriptions, set Renewal Reminder (days before expiry) and configure email template.