How to create recurring Invoices

You may have heard of the term “recurring billing/invoicing.” It is a way for your customers to pay you automatically without having to manually enter their payment details every time they buy something from you.

This can be very useful if you sell products on a subscription basis; you may want to send them an invoice every month or so for the amount due in advance.

This article will show you how to set up and use a simple recurring invoice.

What is a recurring invoice?

A recurring invoice can be scheduled in advance to send automatically to your customers who bought a recurring service/product. You want to schedule the invoices once and forget it!

Please Note: We recommend using Stripe Connect with Invoices; in the event you do not wish to use Stripe Connect, payments would need to be manually recorded.

How to create a recurring invoice

1. Open the "Invoices" tab under the payments section.
2. Select "New Recurring Template" by clicking New on the All Invoices or Recurring Templates page.

Understanding Setting invoice frequency

The below table explains different cases of setting invoice frequency:

1. The first invoice will be due on July 5, 2022.

   • The second invoice will be due on July 7, 2022.
   • Invoice generation would never stop automatically.

2. The first invoice will be due on July 5, 2022.

   • The second invoice will be due on July 7, 2022.
   • Subsequent invoices would be due on the 9th, 11th, and 13th of July.

3. The first invoice will be due on July 5, 2022.

   • The second invoice will be due on July 7, 2022.
   • Subsequent invoices would be due on the 9th and 11th of July. No invoice will be due on July 12.

4. If July 5, 2022, is a Tuesday:

   • The first invoice will be due on July 18 but sent two days in advance, i.e., July 16, 2022.
   • The second invoice will be due on August 1, 2022, sent two days in advance on July 30, 2022.

5. The first invoice will be due on September 2, sent 0 days in advance, i.e., on the same date.

   • The second invoice would be due on November 2 and sent to the customer on the same day.
   • The scheduling will be complete after sending out three invoices to the customer as specified in the settings.

6. For an interval of 2 months starting from the next month:

   • Selecting the start date as August 2 would fulfill this requirement.
   • The scheduling will complete after three invoices as specified in the settings.

7. Sending the invoice on the first Monday of each month starting the next month:

   • The first invoice will be due on August 1, and invoices will be sent one day in advance.
   • This will end the process after the end of the year, with the last invoice due on December 5.

8. Annual frequency:

   • An invoice will be sent on the last date of December each year, i.e., December 31.
   • Invoice scheduling will end after sending out five invoices to the customer.

Status and action types in recurring templates

Please Note: Canceled and completed invoices can be deleted only if no invoice has been sent to the customer. Deleted recurring templates are not shown in the list view.

View sent invoices and their payment status

Users can click on "Details" to view sent invoices and their status. This will open the right panel displaying the invoice statuses.

There are four possible invoice statuses:

• Sent: The invoice was successfully sent to the customer.
• Overdue: The invoice was sent on time but is unpaid.
• Paid: The customer has paid for the invoice.
• Not Sent: A system error prevented the invoice from being delivered; it needs to be resent.

The invoice statuses can also be checked inside the invoice builder once the recurring template is scheduled, showing similarly on the right panel.

FAQ

What is shown in the list view? The Recurring Templates page list represents recurring templates created by the user, which schedule and send invoices per individual settings.

How can I get notified upon receiving payment on the invoice? The following table shows the default notifications sent:

How to stop sending future invoices? Active or scheduled recurring invoices can be stopped by selecting "End" in the Actions dropdown on the Recurring Templates page or directly from within the invoice builder.

Can I modify the price, discount, or taxes from the following occurrence?

No, once scheduled, you cannot change these fields. However, you can edit a sent-out invoice individually and resend it for specific instances, though this cannot be automated.

Can I change the frequency setting of an ongoing recurring invoice? 

No, frequency settings cannot be changed once a recurring invoice is scheduled.

Which products can I add to recurring invoices? Only one-time products (NOT subscriptions) can be added to a recurring invoice. For recurring products, define the frequency inside the invoice frequency setting.