How to Add a Setup Fee to a Recurring Product Invoice

Adding a Setup Fee to a Recurring Product Invoice

If you sell a service that requires an initial setup fee followed by recurring monthly payments, you can now include both charges on a single invoice. Previously, this required creating two separate invoices. This feature simplifies the billing process by automatically handling the setup fee only on the first invoice.

How It Works

When you add a product with a setup fee to a recurring invoice, two line items will appear: one for the setup fee and one for the recurring charge. For the initial invoice, the customer sees and pays both amounts. For all subsequent invoices generated automatically by the schedule, only the recurring charge line item will be included; the setup fee is automatically removed.

Setting Up a Product with a Setup Fee

To use this feature, you first need to create a product configured for recurring billing with a setup fee.

1. Navigate to the Product section of your CRM.
2. Create a new product or edit an existing one.
3. Set the price type to Recurring.
4. In the product's pricing settings, locate and enter an amount for the Setup Fee.
5. Save the product.

Creating the Invoice

1. Go to the Invoices section and create a new recurring invoice.
2. Add the product you created that includes the setup fee.
3. When the product is added, you will see two separate line items for it in the invoice. The line item for the setup fee will be clearly labeled with the suffix "Setup Fee".

This feature is particularly useful for service-based businesses that need to collect an initial onboarding or signing fee alongside their standard recurring charges.