Understand how to bill buyers

Use billing to request one-time or recurring payments from buyers. Depending on your subscription, account configuration, and the tool you use, billing may create invoices, subscriptions, contracts, or payment collection schedules. For recurring billing, payments may be collected automatically, or buyers may be required to pay each invoice manually. This article explains how billing works with invoices, payment links, quotes, contracts, and subscriptions so you can identify the option that fits your sales process.

Billing cadence options

A billing cadence determines whether you request payment once or on a recurring schedule. Use one-time payments for individual transactions, or recurring payments for ongoing billing.

• Bill a buyer once: request a one-time payment using invoices, payment links, or quotes.

• Bill a buyer repeatedly: send recurring invoices to buyers to request payment. Payments can be made by the buyer on each billing date, or collected automatically.

One-time billing

Use one-time billing when a buyer should be charged once rather than on a recurring schedule. For example, use it for a standalone product or service, a one-time fee, or an individual purchase that doesn’t require future payments.

For one-time charges, you can use one of the following tools depending on your sales process:

• Contracts (BETA): create a contract for a buyer and invoice them through the contract. Accepted quotes can also create contracts.
• Invoices: bill a buyer directly for a one-time charge. Create and send an invoice to request payment. Select One-time invoice when creating the invoice.
• Payment links: collect a one-time payment without creating an invoice requesting a payment. An invoice will be sent to the buyer only when the payment is complete.
• Quotes and legacy quotes: send a quote to request or collect payment.

Learn more about creating invoices, creating payment links, creating quotes, and creating legacy quotes.

Recurring billing using contracts

Use recurring billing with contracts when billing is tied to an ongoing agreement with a buyer. This option lets the contract define the line items, billing start date, payment terms, and payment collection settings used to bill the buyer.

Billing can be configured at the account level in billing settings, or individually when directly creating a contract (BETA). Accepted quotes can also create contracts. 

Learn more about contracts.

Recurring billing using invoices

Use recurring billing with invoices when you want to create a subscription directly from an invoice. This option lets you define recurring charges and choose whether payments are collected automatically or requested from the buyer on each billing date.

When creating an invoice, select Create recurring invoices to set up a subscription that bills buyers on an ongoing basis. Subscriptions can be set to automatically collect payments on each billing date, to request payment from the buyer on each billing date, or to not have online payments available to allow payment via other methods (invoices can be manually marked as paid in these cases).

Learn more about creating subscriptions.

Recurring billing using payment links

Use recurring billing with payment links when you want buyers to start a subscription through a checkout experience. This option is useful when you need to share a link that collects the first payment and sets up automatic charges for future billing dates.

When creating a payment link, add recurring line items to create a subscription that bills buyers on an ongoing basis. When a buyer makes the first payment using the payment link, the same payment method will be automatically charged on each billing date for the duration of the subscription.

Learn more about creating and sharing payment links.

Recurring billing using quotes

Use recurring billing with quotes when billing begins as part of a sales process that requires buyer acceptance. After the quote is accepted, your account configuration determines whether HubSpot creates a contract, invoices, a subscription, or a payment collection schedule.

Billing can be configured at the account level in billing settings, or individually when creating a quote or legacy quote. When billing is enabled, the quote's line items, billing start dates, payment terms, and payment collection settings are used to determine what happens after a quote is accepted.

Connected CPQ, Billing, and Payments

If you're enrolled in Connected CPQ, Billing, and Payments beta, you can manage the quote-to-payment process in HubSpot, from quote acceptance to invoicing and payment collection. Learn how billing works with and without the beta.

Billing with Connected CPQ, Billing, and Payments

If the Automatically create contracts from accepted quotes setting is turned on and you're enrolled in the Connected CPQ, Billing, and Payments beta, a contract is automatically created when a buyer accepts a quote.

The contract manages ongoing billing, invoice creation, and payment collection. Payment is collected through invoices rather than directly through the quote. For quotes with line items with a recurring billing frequency, such as monthly billing, payment collection is based on the collection process set in your billing settings:

• Automatic collection: automatically charges invoices using the buyer's payment method on each billing date.
• Manual collection: sends invoices on each billing date. The buyer must manually pay each invoice.

To use subscriptions for recurring billing instead of contracts, turn the Automatically create contracts from accepted quotes setting off.

Learn more about managing end-to-end revenue in HubSpot.

Billing without Connected CPQ, Billing, and Payments

If you're not enrolled in the Connected CPQ, Billing, and Payments beta, payment collection remains tied to the directly created contract (BETA), quote, or legacy quote. Learn more about recurring billing using contracts.

Quotes: if the Automatically create contracts from accepted quotes setting is turned off, invoices and subscriptions are automatically created when the quote is accepted. The payment method entered at checkout is charged automatically on each billing date. If the Automatically create contracts from accepted quotes setting is turned on, billing can't be turned on.

Legacy quotes: for recurring line items, a subscription is auotmatically created and bills buyers on an ongoing basis. Subscriptions can be set to automatically collect payments on each billing date, to request payment from the buyer on each billing date, or to not have online payments available to allow payment via other methods (invoices can be manually marked as paid in these cases). An invoice is created separately for one-time line items.

Learn more about managing subscriptions.

Billing options

The following billing options determine when buyers are charged and when invoices are due.

Billing schedules and future payments

Billing start dates determine when buyers are charged for line items. By default, billing starts on the effective date of the payment link, quote, or subscription. You can also set a custom billing start date or delay billing by a number of days or months.

The summary of the payment link, quote, or subscription shows how the buyer will be charged:

• Subtotal: includes only items due at checkout.
• Future payments: includes items charged at a later date.
• Total: includes all items, regardless of payment due date.

Payment terms

Payment terms determine when invoices are due. Invoices can be due on receipt or use net payment terms. If a net payment term is selected, each invoice is due a set number of days after its invoice date.

Next steps

• Learn more about viewing and managing contracts.
• Learn more about managing invoices.
• Learn more about creating and sharing payment links.
• Learn more about viewing and managing subscriptions.