Renew subscriptions

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Introduction

In today’s digital economy, the subscription business model has become a cornerstone for many organizations across various industries. Central to this model is the concept of recurring payments, where customers commit to regular payments weekly, monthly, or annually in exchange for continuous access to a product or service.

 

A critical aspect of this model is subscription renewal the process by which a customer decides to continue their subscription by actively or passively agreeing to be billed for another cycle. Efficient subscription renewal processes not only ensure customer retention but also support predictable revenue growth.

Step-by-Step Instructions

 

Understanding Subscription Renewals

 

Subscription renewals occur at pre-defined intervals based on the terms agreed upon at the beginning of the contract. While automated renewals are now industry standard for customer convenience and business efficiency, manual renewals are still applicable in specific contexts or customer preferences.

 

With tools like the Odoo Subscriptions application, companies can seamlessly manage and automate the renewal process, from tracking renewal cycles to handling upsells and managing exceptions. This centralized system ensures no renewal opportunity is missed, while also simplifying operations for internal teams.

 

How Subscription Renewal Works in Odoo

 

The Odoo Subscriptions app enables businesses to manage the full lifecycle of a subscription from creation and billing to renewals and cancellations. Here’s a step-by-step overview of how renewals are handled within the Odoo ecosystem:

 

  1. Creating a Subscription Quotation

To initiate a renewal process, a quotation with at least one subscription product must be created and confirmed. A subscription product refers to any service or product that operates on a recurring payment model.

 

Steps:

Go to Subscriptions app ‣ Subscriptions ‣ Quotations

Select an existing quotation or click New to create a new one

Ensure the quotation includes a valid Recurring Plan

Confirm the quotation and ensure initial payment is invoiced and registered

 

Note: A single subscription product is sufficient to process a renewal.

Once confirmed, the quotation becomes a sales order, and an In Progress tag is applied to indicate its active status.

  1. Initiating the Renewal Process

Once a subscription is active, Odoo enables easy renewals via the Renew button on the sales order form.

 

Steps:

Open the existing sales order

Click the Renew button

 

A new Renewal Quotation is generated with a dedicated Renewal Quotation tag

This new quotation mirrors the original subscription details and is ready to be sent to the customer for confirmation and payment.

The chatter in the renewal quotation notes that this is a continuation of the original subscription.

  1. Completing the Renewal

To finalize the renewal:

 

Click Send by Email to deliver the quotation to the customer

Upon confirmation and payment, the quotation becomes a new sales order

Once confirmed:

 

A Sales History smart button appears, showing the chronological order of all subscription sales

An MRR (Monthly Recurring Revenue) smart button appears, leading to a detailed revenue analysis

 

Handling Payment Failures

 

Despite automation, payment failures can occasionally occur due to issues with the customer’s payment method. When this happens, Odoo applies a Payment Failure tag to the sales order and halts automatic renewal until resolved.

To Resolve a Payment Failure:

Check the Chatter in the subscription quotation to verify whether payment was made.

 

If payment was not made:

 

Enter Debug Mode

Navigate to Other Info tab in the sales order

Untick “Contract in exception”

Reload the sales order to remove the Payment Failure tag

 

If payment was made manually:

 

Create and post a new invoice

Enter Debug Mode again, untick “Contract in exception”

Reload to clear the Payment Failure status

Once resolved, the system resumes normal renewal automation.

 

Important: If the “Contract in exception” option is selected, Odoo skips this subscription during automated runs.

Conclusion

 

Renewing subscriptions efficiently is vital for maintaining customer satisfaction and ensuring steady revenue. With Odoo Subscriptions, businesses can automate much of the process while retaining flexibility to handle exceptions and manual renewals when needed. Whether you manage a handful of subscriptions or thousands, Odoo provides the tools to keep your renewals streamlined, accurate, and aligned with your growth goals.

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