Subscription invoice

Common invoicing software products support serial invoicing by automatically generating invoices with all the necessary details, items and other variables. This transforms the writing of invoices into a largely automated task. The situation is identical on the invoice-receiving side.

The subscription invoice: use cases

Subscription invoices are widely used across various industries globally, facilitating regular payments for recurring services or products. Anything that is purchased by subscription over a certain period of time is a practical use case. Here are some typical examples:

• Telecommunication services: mobile service providers and internet service providers use subscription billing to charge monthly fees for their services.
• Food delivery services: Services such as HelloFresh or Marley Spoon rely on recurring invoices to calculate regular payments for their meal box deliveries.
• Magazine subscriptions: Zeit and Spiegel online or the local Tagesspiegel and many more naturally use this form of invoice for billing.

Without getting lost in details at this point, the main feature of the subscription invoice can be described: Service providers and customers agree on a service to be provided at a fixed price over a defined period of time.  Billing is based on the structure of the offer or contract: monthly, quarterly or semi-annually, etc.

6 Advantages of recurring invoices for service providers

The use of subscription invoices offers service providers numerous advantages. This is partly due to the nature of this form of invoice and partly due to the finesse of invoice-generating software.

1. time savings: By automating invoicing, companies save valuable time that they can invest in primary business areas.
2. error reduction: automated processes minimize the risk of errors that can occur with manual invoicing.
3. cost efficiency: less manual effort leads to lower administrative costs.
4. planning security: regular income from subscription invoices enables better financial planning and stability.
5. customer satisfaction: customers appreciate the transparency and regularity of billing, which leads to greater satisfaction and customer loyalty.
6. flexibility: service providers design their offers more flexibly and in line with their customers’ needs; different billing intervals are available

These advantages for companies are reflected equally on the part of the invoice recipients and subscribers: Predictability of expenditure and continuity of services, time savings through automatic payments, etc.

What are the mandatory elements on a subscription invoice?

Subscription invoices must include the same mandatory elements as any other invoice, adhering to local regulations. Here is a summary of typical requirements, using Germany as an example:

• Full name and address of the invoicing party
• Full name and address of the recipient of the invoice
• Date of invoice issue
• Unique invoice number on the subscription invoice
• Period of service provision
• Description of the goods supplied, type and scope of the service provided
• Net invoice amount and VAT
• Total amount of the serial invoice (net plus VAT)
• Tax number or VAT identification number of the invoicing party
• Bank details of the invoicing party
• Payment deadline by which the invoice must be paids

This mandatory information ensures that subscription invoices comply with legal requirements. In this way, they remain transparent and comprehensible for both the invoice issuer and the recipient.

FAQ on the serial/subscription invoice