Subscription Plan
Overview
Subscription Plan — Business Overview
The Subscription Plan is a core business document used to define how recurring products or services are offered, priced, and billed to customers over time. It acts as the commercial blueprint for subscription-based revenue, ensuring consistency, transparency, and predictability in ongoing customer billing.
What the Subscription Plan Is Used For
The Subscription Plan is used to: - Define recurring service or product offerings (monthly, quarterly, yearly, etc.) - Set pricing rules for subscriptions - Standardize billing frequency and duration - Support predictable, recurring revenue streams - Ensure customers are billed correctly and consistently over time
In simple terms, it answers the business question:
“What exactly are we charging our customers repeatedly, and under what terms?”
Prerequisites and Setup Requirements
Before using the Subscription Plan, the following should already be in place: - Clear definition of the products or services being offered on a recurring basis - Agreed pricing strategy (fixed price, periodic fee, or tiered pricing) - Billing cycle decisions (monthly, annual, etc.) - Accounting rules for recognizing recurring income - Customer contracts or commercial terms aligned with subscription billing
Having these elements defined ensures the Subscription Plan reflects real commercial agreements.
Typical Workflow and Business Process Fit
Design the Offer
The business defines a recurring service or product, including pricing and billing frequency.Create the Subscription Plan
The plan is recorded once and becomes a reusable template for subscriptions.Link to Customers
When a customer signs up, the appropriate Subscription Plan is selected.Recurring Billing
The plan drives automated, consistent billing according to the defined schedule.Ongoing Management
Plans support renewals, upgrades, downgrades, or cancellations as customer needs change.
The Subscription Plan sits at the center of subscription-based operations, connecting sales agreements with finance and billing activities.
Key Business Scenarios Where It Is Essential
The Subscription Plan is critical in scenarios such as: - SaaS or digital service businesses charging monthly or yearly fees - Maintenance, support, or service contracts billed regularly - Membership programs with recurring dues - Equipment or service rentals with fixed periodic charges - Any business aiming for predictable, recurring income
Without a clearly defined Subscription Plan, subscription billing becomes inconsistent and error-prone.
Important Considerations for Users
- Pricing Accuracy: Ensure prices reflect approved commercial terms, as errors repeat every billing cycle.
- Billing Frequency: Choose cycles carefully to align with customer expectations and cash flow needs.
- Scalability: Design plans that can be reused across many customers to avoid duplication.
- Clarity: Keep plan names and descriptions clear so sales, finance, and customer support teams understand them.
- Change Management: Modifying a plan can impact active customers—changes should be reviewed carefully.
In Summary
The Subscription Plan is a foundational business document that enables structured, reliable, and scalable subscription billing. It transforms recurring business models into clear, manageable processes that support growth, customer satisfaction, and financial stability.
Basic Information
- Module: Accounts
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| plan_name | Plan Name | Data | ✓ | - | Subscription plan title displayed to customers in Dafater. |
| currency | Currency | Link | ✓ | Currency | Currency used for billing and accounting in Dafater. |
| item | Item | Link | ✓ | Item | Item representing the subscribed product or service in Dafater. |
| price_determination | Subscription Price Based On | Select | ✓ | , Fixed Rate, Based On Price List, Monthly Rate | Defines how subscription pricing is calculated in Dafater. |
| cost | Cost | Currency | currency | Subscription charge amount when using fixed or monthly pricing. | |
| price_list | Price List | Link | Price List | Price list used when subscription price is list-based. | |
| billing_interval | Billing Interval | Select | ✓ | Day, Week, Month, Year | Time unit for recurring subscription billing cycles. |
| billingintervalcount | Billing Interval Count | Int | ✓ | - | Number of billing intervals between each subscription invoice. |
| productpriceid | Product Price ID | Data | - | External product price reference ID from payment gateway. | |
| payment_gateway | Payment Gateway | Link | Payment Gateway Account | Payment gateway account used to collect subscription payments. | |
| cost_center | Cost Center | Link | Cost Center | Cost center for tracking subscription revenue and expenses. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Accounts Manager | ✓ | ✓ | ✓ | ✓ | ||
| System Manager | ✓ | ✓ | ✓ | ✓ | ||
| Accounts User | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Cost Center | Links to | Accounts |
| Currency | Links to | Geo |
| Item | Links to | Stock |
| Payment Gateway Account | Links to | Accounts |
| Price List | Links to | Stock |