Payway Subscription Debt¶

Target Audience: Users, Stakeholders

Introduction¶

The Payway Subscription Debt is a way to keep track of the subscription debt that you, as an organisation, currently owes to the customer. Not only is this a way to keep track of how much money is flowing through your system, but also a way to keep track of how much you still owe a customer, which can be useful information for several reasons.

Getting started¶

The Payway Subscription Debt must be enabled by Adeprimo. Contact our support if this sounds interesting. After this feature has been enabled, the system takes care of the rest, and all you have to do is keep track of the numbers!

What affects the subscription debt?¶

To gain a better understanding of the subscription debt, it is useful to also understand what actions have what kind of effect on a customer's subscription debt. You will find all of the actions that have an effect on the subscription debt below, as well as an explanation on how this affects the subscription debt.

Successful purchase of a new subscription¶

For Online subscriptions (Adyen, Klarna Payments, creditcard, etc), purchasing a new subscription will create a subscription debt stretching from the date of the payment, until the end date of the subscription.

For Offline subscriptions (Billecta), purchasing a new subscription will create a subscription debt according to one of two settings:

Subscription debt added on invoice sent: This means that the subscription debt will be created from the date that the invoice was sent to the customer, until the end date of the subscription.
Subscription debt added on invoice paid: This means that the subscription debt will be created from the date that the invoice was paid by the customer, until the end date of the subscription.

Successful renewal of an existing subscription¶

For Online subscriptions (Adyen, Klarna Payments, creditcard, etc), renewing an existing subscription will create a subscription debt stretching from the date of the payment, until the end date of the subscription.

For Offline subscriptions (Billecta), renewing an existing subscription will create a subscription debt according to one of two settings:

Subscription debt added on invoice sent: This means that the subscription debt will be created from the date that the invoice was sent to the customer, until the end date of the subscription.
- Note that the billing date of a renewal invoice is always within the previous period, meaning that a higher subscription debt will be seen during the last few weeks of the debt period, when the customer has both a paid and unpaid invoice.
Subscription debt added on invoice paid: This means that the subscription debt will be created from the date that the invoice was paid by the customer, until the end date of the subscription.

Registering a credit payment¶

Registering a credit payment, will always subtract the subscription debt of the latest debt period with the given amount, regardless of which payment is actually credited. If the crediting amount exceeds the subscription debt available on the latest debt period, the subscription debt will simply be set to zero for this period.

Note that the "latest debt period" is not always the current, for example if a historical payment is the one being credited.

Registering a write-off payment¶

Registering a write-off payment will subtract the subscription debt of the current debt period with the given amount, regardless of which payment is actually written off. If the written-off amount exceeds the subscription debt available on the current debt period, the subscription debt will simply be set to zero for this period.

Note that the "current debt period" is not always the latest, for example when a renewal invoice for the upcoming period has already been sent to the customer, but the customer is still within the period before.

Registering a reconciliation payment¶

If a payment for the subscription has come in from outside of Payway, a reconciliation payment can be registered via the PAP, to make sure that the calculated subscription debt remains correct.

If a positive reconciliation payment is registered (meaning that the organisation owes more to the customer), the subscription debt will take this amount into consideration from the selected reconciliation date.
If a negative reconciliation payment is registered (meaning that the organisation owes less to the customer), the subscription debt will take this amount into consideration from the selected reconciliation date.

Changing the renewal date of an existing subscription¶

Changing the renewal date of an existing subscription will update the subscription debt accordingly. If the subscription is shortened, the subscription debt will be truncated, and the price-per-day will become higher. If the subscription is extended, the subscription debt will be thinned out, and the price-per-day will become smaller.

Changing the start date of an upcoming subscription¶

Changing the start date of an upcoming subscription will update the subscription debt accordingly. If the subscription is shortened, the subscription debt will be truncated, and the price-per-day will become higher. If the subscription is extended, the subscription debt will be thinned out, and the price-per-day will become smaller.

Cancelling / deactivating a subscription¶

If a subscription is cancelled at period end, the end date of both the subscription and subscription debt is already correct, and no actions will be taken.
If a subscription is cancelled immediately, the subscription debt will be truncated according to the deactivation date, whenever the deactivation goes through and the subscription is no longer providing access.