How do I set up a 3-year subscription with annual billing in Chargebee?

Problem statement

This article explains how to set up a 3-year subscription with annual billing in Chargebee. This configuration allows you to bill customers once every year over a three-year period—ideal for long-term service agreements or extended payment plans.

Related Scenarios

• How to configure a multi-year subscription with specific billing cycles?
• Customizing billing frequencies at the subscription level.
• Understanding subscription status after the final billing cycle.

Solution

You can configure a 3-year subscription with annual billing by setting a fixed subscription duration and an annual billing frequency within the plan settings. This ensures customers are billed once every 12 months for three billing cycles before the subscription ends.

Setup instructions

1. Create the plan:

   • Go to Product Catalog > Plans in your Chargebee Billing site.
   • Click +Create Plan to create a new plan for the 3-year subscription.

2. Configure Billing Frequency:

   • In the plan details, locate the Billing Frequency section.
   • Set the billing frequency to 1 year to bill customers annually.

3. Set the Subscription Duration:

   • Under Subscription Duration, choose Fixed Period.
   • Enter 3 years as the duration to define the 3-year term.

4. Customize Billing at the Subscription Level (optional):

   • Navigate to Subscriptions and select the required subscription.
   • In the Billing Info section, adjust the billing frequency if needed.

5. Review Subscription Status Post-Billing Cycles:

   • After the third annual billing cycle, the subscription will automatically move to Canceled status.
   • If you want to continue billing beyond three years, enable renewal or modify the subscription duration.

Additional information

• Customization limitations: Billing frequency can be customized at the subscription level but not at the customer level.
• Subscription lifecycle: After the final billing cycle, the subscription automatically cancels unless renewed.
• Best practice: Regularly review subscription configurations to ensure they align with your business needs and customer expectations.