Is Recurring profile create a new order on every billing Cycle?

Question

If i will create an order with recurrent profile and it is

1. Billing Period Unit is daily
2. Billing Frequency is 1
3. Auto Bill on Next Cycle make Yes

I have studied on this link

http://www.magentocommerce.com/knowledge-base/entry/working-with-recurring-profiles

Recurring Profiles - How do they work?

But i am confuse about the thing:

1. for each billing cycle ,is recurring profile create new order?

2. If not then ,is magento from second billing cycle this then this payment is not included on sales price total

Please help on this issue .I am too confused on this.

Answer 1

With the settings you listed above Magento will automatically create a new order each day and charge the customer.

Answer 2

Recurring Profile(beta) is a great feature in Magento to bill customer on frequency like daily,monthly,yearly basis. So you can check magento core module Mage_Payment in that Model/Recurring/Profile.php and you can also look at in Mage/Payment/Model/Observer.php

In this file you can look at prepareProductRecurringProfileOptions() method. So here funda for recurring profile is when ever customer is subscribed for daily,weekly,monthly,yearly it will call two API call that are

1. deduct initial fee amount
2. deduct subscription amount

for best understanding follow this link: http://www.blog.modulesgarden.com/recurring-payments-in-magento/

I hope it will help you !