Getting Started

Building Blocks

Subscription Features

Localization

Invoices

Credits

Billing Features

Taxes

Payment Methods

Direct Debit Payments

Configuring Gateways

Fraud Management

Hosted Pages

Attach Additional Data

Migration

Open Source Resources

Other Features

API Integration

Third Party Integrations

Invoicing: An Overview 

An Invoice is a document issued by the business to its customer, detailing out the services and/or products sold to them. It creates an obligation for the buyer to pay. It lists the items sold, their quantities, and the amount payable for each of them. An invoice typically provides the following details:

  • Details of the seller
  • Details of the buyer
  • Items sold, the corresponding quantity and unit price of each item
  • Taxes or discounts
  • Net amount payable by the buyer

Chargebee automates the entire process of invoicing, starting from a new subscription sign up, when the invoice is created, to all payments made between the merchant and buyer. Email notifications can be sent out as well, informing buyers of the transaction status.

The Invoices tab lists all the invoices that have been generated, with details of the invoice number, invoice status (Paid, Payment Due, etc.), credits applied, customer details, invoice date, invoice amount, retry attempt, etc.

The Invoices tab allows you to perform the following operations:

  • Filter for invoices based on customer details, invoice details such as invoice status, subscription details, transaction details, and order details
  • Export invoices as PDF or CSV files
  • Sort the invoice list
  • Email the invoice
  • Create an Order for an invoice (if you've enabled the Order Management feature)
  • View the invoice's details page

In Chargebee, customers are billed on the same day their subscription becomes active. E.g. If a customer signed up on Jan 10th without a trial period, then the billing will be Jan 10th, Feb 10th, March 10th, and so on. If the date is not available then they will be billed on the last day of the month - if the sign up was on Jan 31st, then the next would be Feb 28th and so on.

Invoice Statuses 


Payment Due - Charge has been attempted but has failed. Chargebee will continue to retry the charge based on the dunning settings. You can also choose to collect the payment immediately by clicking on the Collect Now button. An invoice is also marked as Payment Due when payment collection via direct debit is in progress.


Not Paid - Payment has not been received. No further attempts will be made on this invoice. An invoice is also marked as Not Paid if a direct debit transaction fails.


Pending - This status is used for invoices generated for usage-based charges (metered billing).


Voided - The invoice has been canceled. Learn more.


Posted - This status is used when you've enabled Payment Terms for your recurring invoices. Recurring invoices are marked as Posted immediately after they are generated. They will remain in this state until the due period has been exceeded. The invoice status will change to Payment Due if the due period has been exceeded, and the amount hasn't been paid.


Invoices during direct debit payments

Unlike credit card transactions, for Direct Debit payment methods such as ACH and SEPA, there's a delay during transaction completion/processing.

The delay can be explained as follows. During transactions via payment methods such as ACH, the following steps are initiated:

  • When the customer needs to be charged, Chargebee sends a request to the payment initiating entity.

  • When the payment is successfully initiated, Chargebee creates a payment transaction with an In Progress status.

  • The invoice status will be Payment Due as a payment confirmation is still awaited.

When the request is validated and the payment is "settled" by ACH, Chargebee changes the transaction status from In Progress to Success and the invoice will be marked as Paid. Since the process goes through the entire cycle mentioned above each time, there might be a time delay for the ACH/Direct Debit transaction completion. Payment refund would also go through the entire process.

If the payment settlement fails,

  • The transaction will be marked as Failed.
  • The invoice will then be marked as Not paid.
Note
  1. In case of a payment failure, dunning will not be initiated. You would have to manually collect the invoice using the Collect Now option.
  2. When the invoice is in Payment Due state during the transaction in progress,
    the following actions will not be allowed.
    • Deleting an invoice.
    • Voiding an invoice.

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