Overview

Normal subscriptions are funded from the accounts receivable of the subscriber. Services can be billed for an upcoming period (pre-billed) or after being used (post-billed). Billing takes place during a normal billing run. The run can be executed on a monthly basis (period billing - all subscribers are billed on the same day) or daily basis (anniversary billing - subscribers are billed on the day of the month on which they signed up). A credit limit, set on the account associated with each subscription, controls the activation of services; if the limit is exceeded, then the system restricts the activation of services.

This guide aims to explain how CRM.COM modules interact and provide a solution for billing normal subscriptions.

View the Subscription Management solution overview to find out which CRM.COM modules interact to set up and use subscriptions.

View the Subscription Prepaid Billing solution overview to find out how CRM.COM manages prepaid subscription billing.

View the Understanding CRM.COM billing models solution overview to find out how CRM.COM manages billing in general.

Normal billing in CRM.COM

Several CRM.COM modules (described below) interact to provide a comprehensive solution for billing normal subscriptions. The process starts when a new subscription is requested and ends when the subscription is included in the billing process and settled.

Normal billing specifics

Billing term schemes establish contract term options, rules for billing subscriptions, and the billing model (normal or prepaid). Subscription services offered through a normal scheme are typically paid after they are purchased and activated (unless the billing term scheme sets out that a prepayment is required).

The scheme configuration can be used to define:

The billing model of each service (pre-bill or post-bill, period or anniversary)
The billing frequencies
Whether a subscription requires prepayment before it is activated
Whether subscription services are automatically activated when funded
Other subscription rules.

Subscription types represent the packages a company offers its subscribers. Each type can support one or more billing term schemes. Normal billing term schemes must be added to a subscription type to determine how the services will be billed.

The billing definition translates the rules of a business into system rules, administering the billing of a subscription throughout its life cycle. Default values required by the normal billing run are specified in the definition's billing settings.

Subscription types and billing terms schemes are set up to customize the behavior of an individual subscription.

Billing definitions are used to apply common rules and manage all subscriptions.

The cost of each product and the possible discounts that can be applied are defined in a Price Plan. Discounts can be offered based on the quantity purchased or subscription conditions (such as the billing frequency, binding period or account classification).

Usage service catalogs are used instead of price plans for services charged based on their consumption, such as telephony and data.

Funding normal subscriptions

Normal subscriptions are funded from an accounts receivable (a subscriber financial account), which is debited and credited through financial transactions. When a subscription is billed, the account is debited and the balance increases, indicating that the subscriber owes money to the company. When a payment is made or a credit note is issued, the account is credited and the balance decreases. A zero balance indicates that the customer has no outstanding obligation towards the company.

Credit rating is saved with the accounts receivable and reflects how creditworthy a customer is considered.

The credit limit of each account indicates how much money a customer can owe the company. If the account balance is higher than the credit limit, the credit status is set to 'Exceeded' and additional financial events are restricted.

Billing normal subscriptions

The normal billing run is a recurring process that identifies and bills pre-billed and post-billed normal subscription services. Pre-billed services are billed for an upcoming period, whereas post-billed services are billed after they are used.

Subscriptions can also be billed through the Bill Subscription and Bill Account actions (the later bills all subscriptions belonging to the same accounts receivable). The price plan (in the customer's contract) provides the service billing rates.

A bill is created when a normal subscription is billed. A bill is an itemized legal financial statement that is forwarded to the customer for the rendered goods and services. Bills are sent to the customer through bill sending runs, in printed form, email, or SMS.

Bill payments through recurring payment runs

Bills can be paid before they are due through a payment gateway (sparing the customer of the anxiety associated with the timely payment of unsettled bills). The process is similar to a direct debit transaction. An automatic payment run identifies bills that must be settled and creates payment requests that are handled by the payment gateway.

Customers can set up an online payment method in the system for settling their bills automatically (e.g., with a registered credit card).

CRM.COM is fully integrated with Stripe and can integrate and work with any other payment system through the use of its WEB API.

Deactivating and reactivating normal subscriptions

The deactivation process is used for subscriptions when the outstanding balance of their accounts receivable exceeds their credit limit. As a result, the provision of subscription services is discontinued and their billing is put on hold. Groups of subscriptions can be selected using their billing frequency or type, or account classification, and deactivated at the same time. The deactivation process can also identify subscriptions or services whose period of 'resting', 'grace', or 'short-term deactivation' is about to end and determine whether they should be reactivated or deactivated again.

Deactivated subscriptions are re-activated, allowing subscribers to access their services again, once the outstanding balance is settled. The reactivation process also considers the credit limit of the related accounts receivable.

An individual subscription can be reactivated provided the process is enabled on its billing term scheme. The activation of individual or of groups of subscriptions takes place as soon as a payment is received, as long as the credit limit of the account is not exceeded.

Jobs

In subscription TV, Jobs can be viewed as customer orders and subscription requests. Jobs involve the ordering, delivery, and billing of hardware (such as modems and decoders), as well as the planning and billing of additional tasks (such as installations required to complete the order). Jobs are handled by the normal billing run. Individual jobs can also be billed using the Bill Job action (like subscriptions).

- Recommended Reading
  Integrating with CRM.COM
  - Authentication
    - Authentication Web API
  - Subscriptions
  - Accounts Receivable
    - Accounts Receivable Web API Accounts Receivable Configuration Web API
  - Price Plans
    - Price Plans WEB API
  - Payment Gateways
    - Payment Gateway Requests WEB API

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