Customer Subscription Management

Applies toAccounting More Features

AudienceAll users

Last updatedFebruary 24, 2026

Customer Subscription Management is the process of managing how a business sells, bills, and fulfills products or services that customers pay for on a recurring basis (monthly, quarterly, annually, etc.).

This functionality is commonly used by companies offering:

• SaaS software subscriptions

• Digital platforms or memberships

• Service contracts

• Recurring delivery of physical goods

Subscriptions can automatically generate invoices and fulfillment transactions based on defined schedules.

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Configuring Customer Subscriptions (Header Record)

The Customer Subscription Header defines the overall contract terms, billing schedule, and fulfillment behavior.

• Customer – Required.

• Start Date – Required.

• End Date – Optional. If left blank, the subscription renews perpetually.

• Status – Only subscriptions with an active status are included in invoice or shipment creation routines.

• Prepaid – Must be checked before creating a Prepayment Invoice.

• Last Invoice Date – Automatically populated by the Create Prepayment Invoice routine.

• Next Invoice Date – Initially set to the same as the Start Date. Automatically updated after each invoice run based on Invoice Frequency.

• Last Shipment Date – Automatically updated by the Create Fulfillment routine.

• Next Shipment Date – Initially equals Start Date; updated automatically based on Shipment Frequency.

• Contract Terms – Must align with Invoice Frequency and Shipment Frequency.

  • Example: Invoice Frequency = Annual and Shipment Frequency = Monthly, then Contract Terms = 12.

• Deferral Templates – Required if deferral accounting applies (e.g. If Contract Terms = 12, select a Deferral Template with No. of Months = 12).

• Shipment Amount – Total of all Customer Subscription Lines.

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Configuring Customer Subscription Lines

Each subscription may contain multiple lines representing recurring items or services.

• Item – Required. Subscription product or service.

• Unit of Measure – Required. Billing/shipment unit.

• Quantity – Required. Quantity per cycle.

• Unit Price – Required. Price per unit.

• Starting Date – Optional. Line activation date.

• Ending Date – Optional. Line expiration date.

• Pause – Excludes the line from billing and fulfillment when checked.

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Create Prepayment Invoice

Used when subscriptions are billed in advance.

Click Create Prepayment Invoice to generate a Sales Invoice.

System Logic - the routine uses:

• Customer Prepayment Item from Company Setup

• Total Contract Value calculation:

Total Contract Value = Shipment Amount × Contract Terms

• Deferral Template automatically populated on the Sales Invoice Line.

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Validation Errors - The routine will stop if:

• Status ≠ Active

• Prepaid not checked

• Next Invoice Date is blank

• End Date precedes Next Invoice Date

Mass Processing

You can generate invoices in bulk:

1. Open Customer Subscription list view

2. Select desired records

3. Click Create Prepayment Invoices

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Create Fulfillment Shipment

Creates fulfillment invoices representing delivered subscription services or goods.

Click Create Fulfillment Shipment. GoldFinch creates Sales Invoice directly, simplifying subscription processing by bypassing the traditional Sales Order and Whse Shipment flows.

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Invoice Behavior

Prepaid Setting	Result
Prepaid = Checked	Zero-price Sales Invoice
Prepaid = Not Checked	Normal Sales Invoice

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Validation Errors

The routine will stop if:

• Status ≠ Active

• Next Shipment Date is blank

• End Date precedes Next Shipment Date

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Line Inclusion Rules

A subscription line is processed when:

• Starting Date ≤ Next Shipment Date

• Ending Date ≥ Next Shipment Date (or blank)

• Pause = unchecked

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Mass Fulfillment Processing

1. Open Customer Subscription list view

2. Select subscriptions

3. Click Create Fulfillment Shipments

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Create Adjustment Invoice

Used when subscription terms change after a Prepayment Invoice has already been created, such as:

• Quantity increase or decrease

• Line added or removed

• Subscription paused

• Unit price change

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Required Setup Before Running

Update the following fields on the Customer Subscription:

Field	Purpose
Adjustment Service Item	Item used on the adjustment invoice line
Adjustment Date	Invoice and posting date
Adjustment Amount	Invoice or Credit Memo value
Adjustment Notes	Copied into invoice description
Adjustment Deferral Template	Applied if revenue deferral is required

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Validation Errors

The routine will stop if:

• Status ≠ Active

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Article Customer-Subscription-Management  ·  Last updated February 24, 2026 · GoldFinch ERP Help Center