billing-automation

Automating subscription billing and dunning involves managing the subscription lifecycle, generating invoices, applying tax and proration calculations, processing payments, and retrying failed charges with customer notifications.

Proration in recurring billing calculates adjusted charges when a subscription changes mid-cycle. It ensures customers only pay for the portion of the service period used, applying proportional credits or debits to the next generated invoice.

Handling failed payments and dunning workflows requires retrying declined charges automatically over a set period and triggering customer notifications to update payment methods, which helps recover revenue and manage involuntary churn.

Yes, this billing automation approach supports usage-based services alongside standard subscription models. It handles cycles, tax calculation, and currency localization for recurring revenue, adapting invoices to variable consumption metrics.

The best way to manage the subscription lifecycle is through an automated workflow that handles trials, activations, renewals, and cancellations, ensuring accurate invoice generation and seamless payment processing at each transition.

Calculating taxes and localizing currency for recurring invoices requires applying regional tax rules to the billed amount and converting the total into the customer's local currency during the invoice generation process.