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Step 1: Creating a Customer

  1. Go to the Customers page in test mode.
  2. Create a new customer and enter the basic details:
    1. Customer name: For example, “Test Customer 1.”
    2. Email address: This will be used to send emails to customers when enabled in the account settings.
      1. Note: Emails won’t be sent in test mode, so you don’t need to worry about accidental notifications.
    3. External Customer ID: This is an alias or ID from your system for easy reference.
    4. Time zone: Determines the customer’s billing periods alignment.
    5. Invoice method: Choose Orb Invoicing and the default Stripe payment gateway.
    6. Optional settings:
      1. Add Stripe customer details to charge the customer in the future.
      2. Add billing and shipping addresses for invoicing.
Once the customer is created, you can edit their email address, customer name, and tax information. However, the time zone and external customer ID cannot be changed after creation due to their impact on billing cycles.

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Step 2: Adding a Subscription

  1. Click Add Subscription for the customer.
  2. Select a plan: Choose the plan you created earlier (e.g., Starter Plan).
  3. Customizing the subscription:
    1. You can add or remove usage-based prices or fixed prices.
    2. Modify pricing terms, such as offering a discount or adjusting quantities (e.g., charging $5 instead of $10 for the platform fee).
    3. No need to create separate plans for each customer—override plan prices during subscription creation.

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Step 3: Setting the Billing Start Date

  1. Set the subscription start date (e.g., September 1st).
  2. Anchor date: You can choose to anchor billing to the start date or set a custom date (e.g., always invoice on the 5th of the month).
  3. Backdate subscriptions: You can backdate up to three months, and any previous usage events will be picked up for billing.

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Step 4: Finalizing the Subscription

  1. Proration: If the subscription starts in the middle of a billing period, Orb will automatically prorate any fixed fees.
  2. Additional options:
    1. Add minimum spend, discounts, or other overrides specific to the subscription.
    2. Adjust net payment terms or add memos to invoices.
Once the subscription is reviewed and finalized, Orb will display a timeline with a preview of the prices and billing schedule. After creating a subscription for your customer, it’s essential to monitor and manage invoices, usage, and billing cycles. This guide explains how to view and edit invoices, manage billing terms, and handle proration.

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Step 5: Viewing Subscription Details

Once a subscription is active, you can view the following:
  • Subscription start date and billing cycle.
  • Accrued usage: Displays a preview of the current billing period’s usage (e.g., API calls).
  • **Upcoming invoice amount: **the incurred cost on the end of billing period invoice.

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Step 6: Managing Invoices

  1. Viewing invoices: On the customer’s subscription page, you’ll see a timeline of invoices, including:
    1. In-advance charges: These may include prorated charges for fixed fees if the subscription starts mid-month.
      1. Prorating fees: If a subscription starts partway through a billing cycle, Orb will automatically adjust the fixed charges accordingly (e.g., reducing a $10 platform fee to $8.67 based on the service period).
    2. Draft invoices: These accumulate usage charges, which are finalized at the end of the billing period.
    3. Invoice actions:
      1. In “Manual issuance” mode, click Issue to finalize an invoice.
        1. If you have Stripe connected and emails enabled, automatic charges and email notifications will be triggered.
      2. Editing invoices: You can edit invoice details, such as net payment terms, add fixed fees, or apply minimum spend and discounts before issuing.

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Step 7: Understanding the Invoice Grace Period

Usage-based pricing: Invoices that include usage charges will only be issued after the grace period elapses.
  • Grace period: The default is 12 hours after the billing period ends to ensure all usage events are captured before issuing the invoice.
  • Once the grace period is over, the invoice can be issued manually or automatically.

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Step 8: Customizing Invoice Terms on the Subscription

  1. Managing billing terms:
    1. You can adjust payment terms (e.g., net 7, net 14).
    2. Add an invoice memo for clarity on future invoices.
  2. Reviewing usage: Orb allows you to view usage data over time, including a detailed breakdown of events contributing to the invoice.

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Step 9: Automatic Issuance and Emails

  • If configured, Orb can automatically issue invoices and send notifications to customers based on their billing schedule.
By following these steps, you can effectively manage customer subscriptions, track usage, and ensure accurate invoicing in Orb.