Backdated Subscription actions and Invoicing

RevenueStory uses the site-level setting in Chargebee to control the impact of backdated subscription actions and invoicing on reports. By default, reports are configured not to consider the implications of any backdated transactions, and all reporting is done prospectively without impacting historical reporting records.

However, reports start considering the impact of backdated subscription events and invoicing once this setting is enabled. RevenueStory then handles reporting impacts due to backdated subscription actions and invoices.

The backdated subscription actions feature is currently available for limited use.

Scenarios for Backdated Invoicing

If you choose to enable backdating for your site, you will create backdated subscription events as described in the scenarios below.

• Creation Events: Subscriptions are created by specifying a start date in the past.
• Reactivation Events: Subscriptions are reactivated by specifying a date in the past.
• Change Events: Subscription changes are initiated by specifying a change date in the past, for example, changes to recurring items or addition/removal of non-recurring items.
• Cancellation Events: Subscriptions are canceled by specifying a date in the past.

Reports that use these dates for reporting will capture these changes retrospectively, which may impact historical data. Any invoices and credit notes generated will also be created with the corresponding back dates.

Scenario

Consider a customer with a subscription on plan A that generates $100 MRR, activated on the first of the month. On the 15th of the same month, the customer decides to downgrade to plan B with $50 MRR and wants the change to be reflected from the 1st of the same month. Solution:

Case 1: If backdated invoicing is not enabled:

The MRR from the 1st to the 14th is $100, and $50 thereafter until the end of the month.

Case 2: If backdated invoicing is enabled:

The MRR will be reported as $50 for the entire month, and the previously reported MRR will be overwritten.

Any billing-related reports will reflect this correction, and the total billing amount will display $50 for the month instead of $100 as previously reported. It is possible that some credit notes or refunds are generated in the process. Credit notes, refund-related, and account summary reports will report these changes accordingly.