How Saasybill works

Understand the core model behind Saasybill: how plans, subscriptions, and invoices fit together

The big picture

Saasybill is a subscription billing layer that sits alongside Xero. You define your pricing in Saasybill and attach customers to it through subscriptions. Saasybill then takes care of generating invoices directly in Xero at the right time, keeping your accounting clean and centralised.

Xero is the source of truth for all accounting.

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The core workflow

Everything in Saasybill flows through four steps.

1. Connect Xero

   Sign up with Xero to authorise the connection. Saasybill pulls your customers and account codes directly from Xero.

2. Build your product catalogue

   Create plans that define how you charge: flat fee, per unit, tiered, volume, or stairstep. Add add-ons for optional extras.

3. Create subscriptions

   Attach a customer to a plan to start a subscription. Set the start date, units, and any discounts or overrides.

4. Invoices are created automatically

   At each renewal, Saasybill creates an invoice directly in Xero. No manual invoicing required.

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Core objects

These are the building blocks of how Saasybill works.

Plans

Define your pricing model. A plan sets the billing period, price structure, currency, and the Xero account codes revenue posts to.

Subscriptions

Link a customer to a plan. A subscription tracks the start date, units, billing cycle, and any subscription-level overrides like discounts or due dates.

Invoices

Created automatically in Xero at each renewal. Each invoice maps to a subscription and posts revenue to the correct Xero account.

Add-ons

Optional extras that can be attached to a subscription. Add-ons are billed alongside the base plan at each renewal.

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Revenue tracking

Saasybill classifies each invoice by revenue type and maps it to a Xero account code. This keeps your reporting clean without any manual categorisation.

Revenue type	When it applies
New	The first invoice on a new subscription
Renewal	All follow-on renewal invoices after the first
Expansion	When a customer increases their unit count on an existing subscription

Account code mappings are set on each plan and can fall back to company-level defaults in your Company Settings.

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Billing changes

Mid-cycle changes are handled automatically. When a subscription is updated, for example, a customer adds more units, Saasybill calculates whether a prorated charge or credit is due and creates the appropriate document in Xero.

Prorated charges create a new invoice in Xero. Prorated credits create a credit note.

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Setup mode

When you first connect Saasybill, it starts in Setup Mode. In this mode you can create plans, customers, and subscriptions without triggering any invoices in Xero. This lets you mirror your existing billing state before going live.

Once you exit Setup Mode, Saasybill switches to live operation and invoices are created automatically from that point forward.

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What Xero handles

Saasybill sends invoice data to Xero, but Xero owns the accounting layer. Payment collection, tax, reconciliation, and reporting all happen in Xero as normal.

Saasybill manages

Plans, subscriptions, billing cycles, unit changes, proration, and invoice generation

Xero manages

Invoices, payments, credit notes, tax, account codes, and financial reporting