To set up a subscription, the first thing that you have to do is create a subscription group for the new service agreement, or verify that a subscription group exists. If a subscription group exists, it must be set up to invoice the customer yearly and to allow accrual of sales revenue every month of the year. For more information about setting up subscriptions, see Set up subscription groups.

After the subscription group is created, you can create the subscription. For more information about creating service subscriptions, see the following Help topics:

Create service subscriptions

Create service subscriptions from a subscription group

You then create the subscription fee transaction for the first invoicing period, which is one year. The transactions are of the type Regular, which means that you can only create subscription transactions where from and to dates correspond with existing periods that are created in the Periods . For more information about fee transactions, see Create subscription fee transactions.

After you have set up the subscription for your customer, you remember that they have negotiated a 10% discount on all list prices for service offerings. Therefore, you have to reduce the price of the transaction fee that you have created. For more information about changing prices, see Change the price of subscription fees.

Later in the day, your contact at the NTU calls to say that while they still want the service agreement for the lighting rig, they plan to introduce a new lighting rig later in the year. They only need maintenance coverage until October, 2007. To reduce the number of months for NTU's subscription you create a new subscription fee transaction of the type Reduction days. For more information about reducing days, see Reduce the days on subscription fees.

You have now finished setting up the subscriptions, and you are ready to invoice your customer for the subscription. For more information about invoicing subscriptions, see Invoice subscription transactions.

Two days later your customer calls to say that the subscription should be invoiced in US dollars and not Euros. You create a credit note and create a new subscription transaction in the correct currency. For more information about crediting subscription transations, see Credit subscription transactions.

At the end of each month, you accrue one month's revenue from the customer's subscriptions to the profit and loss account and WIP accounts. For more information about accruing revenue for subscriptions, see Accrue subscription revenue.