Recurring Virtual Cards can help you pay tools or services on a periodic basis.
Here are a few examples:
- Any subscription to a SaaS tool, such as Slack, Intercom, etc.
- Amazon Web Services or other hosting related charges.
- Recurring marketing expenses, such as Facebook, Google Adwords, LinkedIn, Twitter, etc.
While creating the Recurring Virtual Card, add the name of the vendor, the cost of the subscription, renewal frequency, and the Spend Limit for the subscription. Also, mention Categories and Tags for ledger entries.
The person who creates the card is the Spend Owner and will be contacted for any developments.
Here’s how you create a Recurring Virtual Card:
- Go to Virtual Cards page.
- Click on the Create button on the top-right corner.
- Search for the Service or Item to purchase.
If the vendor is not available in the pre-existing list, you can key in your vendor name and select the option that says (New Service) in the dropdown list. When a new service/vendor is selected, a new field called 'Service Website URL' will appear, where you can add the website of this new vendor/service.
- Add the Cost per renewal cycle.
- Select Recurring.
- Add the following details:
|Subscription Start Date||The date you start paying the vendor for a subscription.|
|Renewal Frequency||The expected schedule of the vendor’s charges – this could be on a monthly, quarterly, or yearly basis.
If you pay for a service every month, the Renewal Frequency is 1 month. For a yearly basis, it’s 12 months.
|Spend Limit||Set a Spend Limit for a day, month, quarter, etc. Select the time period from the drop-down next to the time period.
If you set a Spend Limit of $200 a month, a charge exceeding this amount in a month will be declined. For more information on Spend Limit Time period, scroll down to the last section of this article.
By default, the Spend Limit is set to 2X of the cost you enter. The amount can be customized.
|Category, Tags (Line Level), Tags (Transaction Level)||These fields help the accounting team to book your expense in the General Ledger.
If you're unsure of the category, pick one that's closely related to the vendor. The Accounting team can change it later.
|Card Lock Date||The Lock Card feature will prevent the card from getting charged after a set date. This will stop auto-renewals on the card.
To avoid auto-renewals, set a lock date for before the renewal. Airbase will send a reminder to your inbox a few days before the lock date. You can then choose to renew or cancel the subscription.
You will be notified if your company is already paying for service on a recurring basis. To find out who owns the expense, go to Spend owned by others under Recurring Expenses. This helps prevent any duplicate subscriptions.
Time period calculation for Spend Limit.
Per Day: The window starts from 12 AM of the day the Spend Limit was set. Say you set it on Wednesday at 10 AM, the new Spend Limit is effective from 12 AM on Wednesday.
Per Week: The window starts from Monday at 12 AM of the same week. Say the Spend Limit was set on Wednesday, then it will be effective from 12 AM Monday to 11.59 PM, Sunday.
Per Month: The window starts at 12 AM on the 1st of the same month till 11.59 PM on the last day of the same month. Say you change the Spend Limit on 13 April, the window is then set from 1 April to 30 April.
Per Quarter: The window starts at 12 AM on the 1st day of the quarter till 11.59 PM on the last day of the same quarter. Say you change the Spend Limit on 8 August, the window is then set from 1 July to 30 September.
Per Year: The window starts at 12 AM on 1 January of the given year, till 11.59 PM on 31 December of the same year. Say you change the Spend Limit on 8 August, 2020, the window is then set from 1 January, 2020 to 31 December, 2020.