This page explains how subscriptions work as a concept. For step-by-step instructions on creating and managing subscriptions in the app, see Subscriptions in the Billing Workspace section. What is a subscription?
A subscription is the link between a customer and a plan. It is the central object in Saasybill. Every invoice, credit note, and billing event flows from a subscription.
When you create a subscription, you define:
- Who is being billed (the customer)
- What they are being billed for (the plan)
- How many units apply
- When billing starts
From that point on, Saasybill manages the billing cycle automatically.
How subscriptions drive invoices
At each renewal, Saasybill calculates the amount due based on the subscription’s current units and plan pricing, then creates an invoice directly in Xero.
The revenue type on each invoice is classified automatically:
| Invoice type | When it applies |
|---|
| New | The first invoice on this subscription |
| Renewal | Every subsequent renewal invoice |
| Expansion | When a customer increases units on an existing subscription |
Subscription lifecycle
A subscription moves through a defined set of states from creation through to completion or cancellation.
| Status | What it means |
|---|
| Pending | Created with a future start date. Not yet live but the first invoice has been created. |
| Active | Live and billing. Renews automatically at each period. |
| Complete | Reached its schedule end date. |
| Ended | Stopped immediately or cancelled manually. |
An Ended subscription can be reverted back to Active if done so before it’s scheduled renewal date.
Units
Units represent the quantity being billed: licences, users, seats, or whatever measure the plan defines. The plan sets the minimum unit floor; individual subscriptions can override this floor if needed.
There are two unit values tracked on a subscription:
- Current units: the live count, updated whenever a change is made
- Paid units: the count that the most recent invoice was raised against
These two values may differ mid-cycle if a unit change has been made but not yet invoiced, for example, when a non-prorated update is made.
What happens when a subscription changes
Mid-cycle changes to a subscription, such as increasing or decreasing units, trigger a billing adjustment. Whether this results in an invoice or a credit note depends on the direction of the change and your proration settings.
| Change | Outcome |
|---|
| Units increase | A prorated invoice is generated for the additional amount - unless the increase results in a lower payable amount, such as when upgrading tiers on a volume plan, in which case a prorated credit note for the difference is generated. |
| Units decrease | No immediate billing document. The change takes effect at the next renewal. |
| No proration | The change takes effect at the next renewal. |
Subscription level overrides
Individual subscriptions can override certain defaults set at the company or plan level:
- Discount: a percentage reduction applied to the base plan amount
Discounts do not apply to add-ons.
- Minimum invoice amount: the threshold below which an invoice is not approved
- Invoice due date: the number of days after the invoice date that payment is due
- Minimum units: overrides the plan level minimum for this specific subscription
Add-ons
Add-ons are optional extras that can be attached to a subscription. They are billed alongside the base plan amount at each renewal.
See Add-ons for the full details.
