Deals, Line-Items and Recurrent Products

abenrob
Participant

Hello,

I'm a bit confused by the relationship between Deals, Products and Line-Items...

We have recurrent products which I need to incorporate in HubSpot as Deals.

What are the actual steps here? This is my naïve understanding:

  1. Create deal with deals API
  2. Create line-item with line item API
  3. Associate line item to deal with CRM associations API

Will a new line item need to be created with each recurring payment, or does this happen automatically?

 

What do I do when a deal ends (user cancels plan)? For the deal, I would add an end-date, indicating the deal is over. What about the line item? Does the deal's end date affect the associated line item?

 

Thanks,

Adam

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6 Replies 6
WendyGoh
HubSpot Employee

Hey @abenrob,

 

When looking to create a recurring product, you would need to first create a product either within HubSpot like this:

recurringProduct.png

 

or using the Create a product endpoint

Note: you can select the price type as recurring charge. 

 

Once that's done, you can grab the product ID by using this endpoint: Get all products

 

Having the product ID, you can create a line item in which the parameter `hs_product_id` is pointing to the product ID (with the recurring charge). 

 

Now that you've the line item created, you can associate it with the deal using the CRM Associations API

 

To answer your question regarding when the deal closed, the association between the line item and the deal will still be there. You can still view the line item with the products on the deal record. 

 

Hope this helps to shed some lights!

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abenrob
Participant

Thanks Wendy,

What's the situation with line-item and recurrent payments in terms of forecasting? Is a new line item created for each payment made, or doe the line item represent the product including it's recurrent nature?

 

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abenrob
Participant

Wendy,

per: "To answer your question regarding when the deal closed, the association between the line item and the deal will still be there. You can still view the line item with the products on the deal record. "

In our case the deal is closed as soon as someone signs up. The issue is not the closed state, it's the "canceled state." I.e. the user cancels their plan (product), the recurrent payments therefore stop, and I need to flag the deal as "finished". The idea was to do this with deal end-date, as that would indicate that the revenue stream was ending. So the question remains: when a deal is "ended" (end-date reached), does the revenue still show in the system since there is a line item? If so, do I need to do anyhting with said line item when a deal reaches it's term?

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WendyGoh
HubSpot Employee

Hey @abenrob,

 

When looking to report on forecasting, HubSpot will look at the deal amount and you can update the deal amount to reflect the product recurring value in your HubSpot app - Deal record > 'Edit products' > Summary: select e.g. 'Annually':

Screen Shot 2020-03-26 at 3.39.07 PM.png

 

To your second question about tracking recurring revenue, you can manage recurring products in HubSpot by using the `Revenue Analysis` report where if a recurring revenue is inactive, you can set the reason to be Churned. You can learn more here: Track recurring revenue in HubSpot.

 

One thing to note here: The recurring revenue amount doesn't auto-populate the product recurring amount/deal amount. As such, you'd need to set this recurring revenue amount manually.

 

Hope this helps to shed some light. Let me know if there's any further questions on this 🙂 

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abenrob
Participant

Hm. So to do recurrent revenue reporting, forecasting, etc. we need to have an enterperise plan? We're a pretty small start-up at this point, and enterprise is not feasible. How are other (non-enterprise) SasS customers managing recurrent plan-based products?

 

Are line items used to track multiple revenues for a deal? I.e. a deal is created, which represents a recurrent product (plan in our case), and a line item is created at the same time (linking the deal to the product.) Are additional line items added for each recurrent payment, all associated back to the same deal?

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WendyGoh
HubSpot Employee

Hey @abenrob,

 

Currently the recurring revenue reporting is only for Sales Hub Enterprise. For non-enterprise customers, I'd love to share with you this forum thread: Solved: HubSpot Community - Recurring deals with upfront/implementation fee - HubSpot Community in which users shared workaround (specifically check out @charliepinker response).

 

As for the second questions, a recurring product generates one product ID which is used when creating line item and this line item will be associated to a deal. As such, there wouldn't be additional line item added for each recurring payment as ultimately the line item is set by the product ID. 

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