Example of annual subscription - first year pro rata

In this example you add a subscription with an invoice cycle of one year (Y1), where you calculate the first year on a pro rata basis and invoice subsequent years in full.

Sales contact Autocentrum Vermeulen B.V. purchases a subscription to your magazine. The subscription starts on 1 March of the current year.

The first year, you invoice the remaining amount for this year, i.e. 1 March up to and incl. 31 December. The following year this sales contact receives the annual invoice in January, as do all other sales contacts.

Invoicing timing: You send monthly invoice - a small number of invoices for new subscriptions each month - and in January a large number of invoices for all current subscriptions.

Subscription with invoice cycle of a year:

• Cycle invoicing: Jaar
• Start date subscription: 1 January of the current year
• Start date invoice cycle: 1 January of the current year
• Despite the fact that the subscription starts on 1 March of the current year, you set the start of the subscription as well as the start of the invoice cycle to 1 January of the current year. Profit will then automatically increase the date in Start date invoice cycle to 1 January of the following year after the first invoice. Now, this subscription will be automatically invoiced with all other current subscriptions.
• On the line, you set theStart date and Invoice from to the actual start date of the subscription, i.e. 1 March of the current year in this example.

  Note: 

  The price of the subscription article should come into effect at the same time that the cycle starts for the period. For example, an annual subscription starts on 15 November of the current year and the annual cycle must start on 1 January of the following year. Then you would like Profit to calculate the part from 15/11 up to and incl. 31/12 pro rata. This is only possible if the price is known for the entire cycle. Thus, the price must be known at the start of the previous cycle, in this case on 1 January of the current year. Profit will then determine the price correctly, otherwise it is not possible to make the proper pro rata calculation. This is particularly important in an annual cycle, because the prices from a year ago are not always known.

To add a subscription:

1. Go to: Subscriptions / Subscription / Subscription.
2. Click on: New.

   

3. Enter 1 januari van het huidige jaar in Start date subscription.
4. Complete the remaining fields.

   You set the actual start date for the subscription in the line.

5. Go to the tab: Cycle.

   

6. Select Jaar in Cycle invoicing.
7. Select 1 January of the current year in Start date invoice cycle.
8. Set 1 January of the following year as the Extension date.
9. Add the line with the article.

   

10. Select the actual start date for the subscription in Start date.

    This date is directly copied to the Invoice from field.

11. Click on: Finish.

Invoicing:

Now invoice this subscription for the pro rata amount for the current year. You now simulate that today it is 15 March. You invoice on about the 15th of each month.

1. Go to: Subscriptions / Invoicing / Invoices.
2. Click on the action: Invoice automatically.

   

3. Select 15 March of the current year in Reference date.
4. Select the same date forInvoice date.
5. Click on: Next. 

   

6. Select the subscription.
7. Click on: Finish. 
8. Open the properties of the invoice.
9. Click on the action: Print preview.

   

10. View the invoice for the pro rata amount for 1 March up to and incl. 31 December of the current year.

Here, you see an unrounded price. If applicable, you can change the line amount before you issue the invoice.

View the subscription:

1. Go to: Subscriptions / Subscription / Subscription.

In the view, you see that Profit has automatically increased Start date invoice cycle (the Begin cyclus field in the view) to January in the following year.

Invoicing:

Simulate that you invoice this subscription in January next year.

1. Go to: Subscriptions / Invoicing / Pro forma invoices.
2. Click on the action: Create pro forma invoices.

   

3. Select 1 January of the following year in Reference date.
4. Select the same date forInvoice date.
5. Select the subscription.
6. Click on: Finish. 
7. Open the properties of the pro forma invoice.
8. Click on the action: Print preview.

   

9. You see that Profit will automatically invoice the entire subscription amount in January of the next year.