Subscription Management in ERPNext
The Subscription feature in ERPNext helps businesses automate recurring billing and expense management. It is ideal for services that require periodic renewals such as software subscriptions, maintenance contracts, memberships, hosting services, rental agreements, and other recurring transactions.
The Subscription master stores all the information required to automatically generate Sales Invoices or Purchase Invoices based on predefined billing schedules.
For example, a software company offering annual ERP subscriptions can use Subscription Management to track renewal dates and automatically generate renewal invoices when the subscription period ends.
Subscription Management automates recurring billing, reduces manual effort, and ensures invoices are generated on time.
To access Subscription Management:
Home > Accounting > Subscription Management > Subscription
1. Prerequisites
Before creating a Subscription, ensure the following is configured:
- Subscription Plan
Subscription Plans define the billing frequency, pricing structure, and invoicing behavior used by subscriptions.
2. How to Create a Subscription
Follow these steps to create a Subscription:
- Go to the Subscription list and click New.
- Select the Party Type as Customer or Supplier.
- Select the relevant Customer or Supplier.
- Enter the Subscription Start Date.
- Optionally enter a Subscription End Date.
- Set Days Until Due to define the payment due period.
- Select one or more Subscription Plans.
- Save the Subscription.
ERPNext automatically calculates invoice periods based on the selected Subscription Plan and subscription dates.
Once a Subscription is active, ERPNext can automatically generate invoices according to the configured billing schedule.
3. Features of Subscription Management
3.1 Trial Period
Businesses can offer free trial periods before regular billing begins.
To configure a trial:
- Set the Trial Period Start Date.
- Set the Trial Period End Date.
During the trial period:
- No invoices are generated.
- The Subscription status displays as Trialling.
Trial periods allow businesses to offer services without generating invoices until the trial expires.
3.2 Cancel Auto Renewal
Enable Cancel At End Of Period if the subscription should automatically stop after the current billing cycle.
For example:
- A yearly subscription will stop generating invoices after one year.
- No future renewals will be created automatically.
3.3 Applying Taxes
Taxes can be automatically applied to subscription invoices using a:
- Sales Taxes and Charges Template
This ensures every generated invoice follows the organization’s tax rules.
3.4 Applying Discounts
ERPNext allows discounts to be applied directly on subscriptions.
Discount options include:
- Discount on Grand Total
- Discount on Net Total
- Percentage-based discounts
Example:
- Subscription Amount: 12,000
- Discount: 2%
- Discount Value: 240
Subscription-level discounts are automatically applied whenever invoices are generated.
4. Automatic Invoice Generation
One of the most powerful features of Subscription Management is automatic invoice creation.
Invoices are generated according to the billing interval defined in the Subscription Plan.
Available options include:
- Generate Invoice At Beginning Of Period – Creates invoices as soon as a new billing cycle starts.
- Generate New Invoices Past Due Date – Continues generating invoices even if previous invoices remain unpaid.
- Generate Invoice Early – Creates invoices before the billing period ends.
- Generate Invoice Days Early – Defines how many days before renewal the invoice should be generated.
By default:
- Generated invoices are automatically submitted.
- Disabling Submit Invoice Automatically saves invoices as Draft.
Automatic invoice generation ensures recurring billing cycles continue without manual intervention.
5. Follow Calendar Months
The Follow Calendar Months option aligns billing periods with actual calendar months.
Example:
- Billing Interval: 3 Months
- Subscription Start Date: 15-Apr-2020
Without this option:
- Invoice Period: 15-Apr-2020 to 14-Jul-2020
With Follow Calendar Months enabled:
- Invoice Period: 15-Apr-2020 to 30-Jun-2020
This is useful for businesses that want billing periods aligned with accounting months.
6. Canceling a Subscription
If a customer no longer requires the service, the subscription can be canceled.
To cancel:
- Open the Subscription.
- Click Cancel Subscription.
Once canceled:
- No future invoices are generated.
- The subscription becomes inactive.
Canceling a Subscription immediately stops all future automated billing activities.
7. Updating Subscription Information
The Fetch Subscription Updates button updates the Subscription with the latest generated invoice information.
This helps users:
- Track billing history.
- View recent invoices.
- Monitor subscription activity.
8. Subscription vs Auto Repeat
| Auto Repeat | Subscription |
|---|---|
| Works on transactions. | Works on subscription-based items and services. |
| Can create Sales Orders, Purchase Orders, Invoices, Journal Entries, and more. | Creates only Sales Invoices and Purchase Invoices. |
| Provides limited recurring controls. | Includes trial periods, billing cycles, due dates, discounts, and subscription plans. |
Use Subscription when managing recurring services and automated invoicing. Use Auto Repeat for repeating business documents.
9. Benefits of Subscription Management
- Automates recurring invoicing.
- Reduces manual billing effort.
- Supports trial periods and renewals.
- Manages recurring customer and supplier transactions.
- Supports discounts and tax templates.
- Improves billing accuracy.
- Provides complete visibility into subscription lifecycles.
