billing-automation

You can automate subscription billing by implementing lifecycle states from trial to canceled, triggering automated invoice generation and payment processing for recurring charges. This handles the entire workflow from initial subscription setup through ongoing billing cycles.

A dunning workflow manages failed payments through automated retry schedules and customer notifications. It systematically retries failed charges at set intervals to recover revenue while keeping subscribers informed of their payment status.

Prorated charges calculate the cost difference when a customer upgrades or downgrades their plan mid-cycle. The system automatically computes the remaining value of the old plan and applies it toward the new plan's cost on the next invoice.

Yes, the system supports tax calculation across different jurisdictions for recurring invoices. It applies the correct tax rates based on customer location during invoice generation to ensure compliance for subscription billing.

Yes, usage-based billing is supported for metered services alongside fixed subscription plans. The system can track variable consumption and apply metered charges to the customer's invoice in addition to any recurring base fees.

The best approach is implementing a state machine that transitions subscriptions through lifecycle stages like trial, active, and canceled. This automates invoice generation, payment processing, and dunning triggers at each state change.