# Plan basics
On this page, you'll find information on:
* [The plans resource](#the-plans-resource)
* [The lifecycle of a plan](#lifecycle-of-a-plan)
## The plans resource
[Plans ](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/plans)define the recurring billing behavior of a group of [subscriptions](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/subscriptions/subscription-basics). Since plans can be used to perform reporting and bulk operations, you should be careful when adding different subscription products to the same plan.
For complete specifications, refer to the [Plans API](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/plans) reference documentation.
### Identifier
When [creating a plan](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/plans/..#plans-1), you can specify its `id` . The value cannot contain whitespaces. If you don't provide an `id`, Digital River generates a [UUID](https://en.wikipedia.org/wiki/Universally_unique_identifier).
### Name
A [plan's](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/plans) `name` should describe the subscription products that belong to it. We recommend that you select a `name` specific enough for inclusion in [customer notifications](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/order-management/customer-notifications). When Digital River creates a [draft invoice](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/invoices/invoice-basics#the-invoice-lifecycle) at the start of each billing cycle, we use the plan's `name` to set the [invoice's ](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/invoices)`description` . We then add `invoice.description` to the [`data.object`](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/order-management/events-and-webhooks-1/events-1#event-data) of [events](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/events) with the [`type` ](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/order-management/events-and-webhooks-1/events-1#event-types)of [`subscription.extended`](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/order-management/events-and-webhooks-1/events-1/event-types#subscription.extended), [`subscription.payment_failed`](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/order-management/events-and-webhooks-1/events-1/event-types#subscription.payment_failed), and [`subscription.reminder`](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/order-management/events-and-webhooks-1/events-1/event-types#subscription.reminder).
### Terms
A [plan's](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/plans) `terms` should contain the contractual agreement displayed to customers during the acquisition process. These `terms` define the subscription, provide links to Digital River's [terms of sale](https://store.digitalriver.com/store/defaults/en_US/DisplayDRTermsAndConditionsPage/eCommerceProvider.Digital%20River%20Inc.) and [privacy policy](https://store.digitalriver.com/store/defaults/en_US/DisplayDRPrivacyPolicyPage/eCommerceProvider.Digital%20River%20Inc.), and stipulate that customers agree to store their payment information for use in renewals.
These should be the same [terms displayed to customers](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/integration-options/checkouts/subscriptions/digital-river-coordinated-subscriptions#displaying-terms-and-acquiring-consent) during the acquisition process.
### Contract length and billing intervals
The optional `contractBindingDays` indicates the agreed-upon length of the contract. For example, an annual subscription should have a value of `365`.
The data in this field is used only for compliance and transparency purposes. Therefore, your integration must be set up to allow customers to [cancel subscriptions](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/subscription-management/managing-a-subscription#cancelling-a-subscription) after the designated period elapses. Of course, during this contract period, you can always grant customers an exemption and allow them to cancel their subscriptions.
The billing `interval` is used in combination with the `intervalCount`. You can set up plans with intervals of `day`, `week`, `month` or `year`. The `intervalCount` is how often the customer is billed per the unit of time specified by `interval`. The `intervalCount` must be `1` or greater and cannot exceed `1000`.
The following examples demonstrate the relationship between these variables:
{% tabs %}
{% tab title="Example one" %}
This defines a subscription with a binding length of one year. The customer is billed annually.
```javascript
{
...
"contractBindingDays": 365,
"interval": "year",
"intervalCount": 1,
...
}
```
{% endtab %}
{% tab title="Example two" %}
This defines a subscription with a binding length of one year. The customer is billed every six months.
```javascript
{
...
"contractBindingDays": 365,
"interval": "month",
"intervalCount": 6,
...
}
```
{% endtab %}
{% tab title="Example three" %}
This defines a subscription with a binding length of one month. The customer is billed every two weeks.
```javascript
{
...
"contractBindingDays": 30,
"interval": "week",
"intervalCount": 2,
...
}
```
{% endtab %}
{% endtabs %}
### Billing offset days
The `billingOffsetDays` represents how many days before the end of the billing period that Digital River [opens an invoice](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/invoices/invoice-basics#invoice-states). For example, if you want Digital River to start attempting to capture payment ten days before the billing period ends, set this parameter to `10`.
The `billingOffsetDays` cannot be greater than the [`collectionPeriodDays`](#collection-period-days). Such a configuration could result in the billing process concluding without a successful payment capture but with time remaining in the current cycle.
{% code title="400 Bad Request" %}
```javascript
{
"type": "bad_request",
"errors": [
{
"code": "invalid_parameter",
"parameter": "collectionPeriodDays",
"message": "billingOffsetDays cannot be greater than collectionPeriodDays."
}
]
}
```
{% endcode %}
### Renewal reminder days
The `reminderOffsetDays` represents the number of days before the initiation of billing that Digital River sends you the [renewal reminder event](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/order-management/events-and-webhooks-1/events-1/event-types#subscription.reminder). This event should trigger a corresponding event in your system that sends a reminder to the customer.
For example, if you want to set up your system to email a customer one week before Digital River [opens an invoice](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/invoices/invoice-basics#invoice-states), set `reminderOffsetDays` to `7`.
The `reminderOffsetDays` cannot be greater than the [`contractBindingDays`](#contract-length-and-interval).
### Collection period days
The `collectionPeriodDays` represents the number of days that Digital River attempts to collect payment. If you set this parameter to `0` or `1` , we make a single attempt to bill the customer. But if you provide a value greater than `1`, and the first billing attempt fails, our [smart autorenewal service](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/invoices/invoice-basics#invoice-billing) continues making collection attempts for the number of days you specify.
### Billing optimization
Once a plan is created, `billingOptimization` indicates whether our [smart autorenewal service](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/invoices/invoice-basics#billing-optimization) is activated for that plan's subscriptions.
### State
For more information on the `state` attribute, refer to the [lifecycle of a plan](#lifecycle-of-a-plan) section.
## Lifecycle of a plan
[Plans](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/plans) can be created in a `draft` or `active` state. But [subscriptions ](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/subscriptions/subscription-basics)can only be added to `active` plans. In other words, once you [activate a plan](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/using-our-services/subscriptions#creating-and-activating-plans), Digital River accepts its identifier when you create a subscription.
After a plan is `discontinued`, any subscriptions currently on that plan continue renewing. You cannot, however, add any new subscriptions to a `discontinued` plan.
When a plan is `deactivated`, any subscriptions currently on that plan become [`ended` ](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/subscriptions/subscription-basics#subscription-lifecycle)on their [`nextInvoiceDate` ](https://docs.digitalriver.com/digital-river-api-reference/2021-12-13/subscriptions/subscription-basics#date-of-next-invoice)and any new subscriptions that you attempt to add are blocked.
For details, refer to [discontinuing and deactivating plans](https://app.gitbook.com/s/-LqH4RJfLVLuHPXuJyTZ/using-our-services/subscriptions#discontinuing-and-deactivating-plans).
The only two states that allow a plan's subscriptions to continue billing are `active` and `discontinued`.
