Subscriptions
Learn how to manage subscriptions on Yorlet.
Overview
Subscriptions is a recurring billing engine within the Yorlet platform for collecting rent. It generates Invoices. The Billing engine then automatically collects Payments on those Invoices, and moves on to the next one. Invoices left unpaid after their due date are visible from the Billing dashboard so you can easily track arrears.
A subscription will always generate the first invoice on the first day (or move in day) of a tenancy. After that, all Invoices are created at the end of the billing interval, which is set during the creation of an application.
Subscriptions are automatically generated when an application is completed. Learn more about the application lifecycle.
Subscription lifecycle
Subscription created
The subscription is created when an application is completed or is created manually. The status of the subscription will be either active or scheduled depending on the start date.
Subscription becomes active
If the subscription is scheduled, it will become active on the start date. The subscription will generate the first invoice on the start date.
An invoice is created for the subscription
The first invoice is created on the first day of the tenancy or the start date of the subscription. Subsequent invoices are created at the end of the billing interval. The status of the invoice is open.
The customer pays the invoice
The customer pays the invoice using the payment method set on the subscription. The status of the invoice is paid.
The subscription generates the next invoice
The subscription generates the next invoice at the end of the billing interval. The status of the invoice is open.
The customer does not pay the invoice
If the customer does not pay the invoice by the due date, the status of the invoice is past due. The subscription will continue to generate invoices at the end of the billing period.
Subscription ends
The subscription lifecycle continues until the end date of the subscription is reached or the subscription is cancelled. The status of the subscription will be complete when the end date is reached or canceled if the subscription is terminated early.
Collection methods
You can determine the method by which an invoice is paid by setting the subscription collection method to either Charge automatically or Send invoice. Initially this is decided when creating an application, but it can be edited while the subscription is active.
- Charge automatically: Collect a payment method from your customers during the application process, this becomes the subscriptions default payment method and invoice payments are automatically charged.
- Send invoice: An email is sent to your customer with a link to a hosted invoice. If you select this method whilst creating an application your customer will not be asked to provide a payment method.
Optimised collection
Some payment methods can take several days to complete so Yorlet Billing automatically applies optimisations to make sure you’re being paid when a subscription invoice becomes due.
Without optimised collection
Without optimisation the payment would settle 3 days after the subscription due date. For example, Bacs Direct Debit payments take two to three business days to succeed:
| Timing | Description |
|---|---|
| T+0 | Invoice is generated, payment initiated and debit request submitted |
| T+1 | Debtor’s bank receives request and prepares to debit funds |
| T+2 | Customer is debited funds |
| T+3 | Funds received and payment succeeds |
In this example, the payment would settle 3 days after the subscription due date.
With optimised collection
Yorlet Billing will apply optimisations and initiate some payments early to avoid late settlement:
| Timing | Description |
|---|---|
| T-2 | Invoice is generated, payment initiated and debit request submitted |
| T+0 | Customer is debited funds |
| T+1 | Funds received and payment succeeds |
This optimisation means that the customer will be debited on subscription due date.