End of Dunning Cycle Behavior (Expire Subscription/Fail the Invoice)
For both automatic and manual payment dunning cycles, you have the option to configure the behavior of the failed invoice and the subscription if the customer does not update their payment information.
By default, dunning settings will automatically fail an invoice at the end of the dunning cycle if the invoice has not been paid. A failed invoice is Recurly's way of writing it off as bad debt, removing the owed balance from the customer's account.
You can change your dunning settings to never auto-fail the invoice and leave the invoice past due. When you change the invoice dunning setting, all invoices currently in dunning (in a past due state), will still either fail or stay past due based on the previous setting, but new invoices entering dunning will start to follow the new setting. This is due to the fact that dunning settings are versioned to make sure an invoice currently in a dunning step does not change its schedule for sending email.
Users with permissions to edit the Customer section of Recurly have the option to reopen failed manual invoices. If a failed manual invoice is reopened, dunning will not restart (no dunning emails will be sent) and the associated subscription will not be effected. When a manual invoice is reopened, it will remain in an Open state indefinitely until it's closed and marked paid/failed.
If you leave your invoices past due after the dunning cycle is complete there are two ways to attempt collection again on the invoice. Both of the below actions will send all past due invoices on the account into collections.
- Have the customer update their billing information
- Add a new subscription to the account (resubscribe the customer)