Exploring Billing Subscription Modules in Dynamics 365 F&O

Dynamics 365 F&O offers a robust feature known as Billing Subscription Modules, designed to manage subscription revenue, recurring billing, and multi-element revenue allocation12. This article aims to provide an overview of these modules and their functionalities.

Subscription Billing Feature

The Subscription Billing feature appears within the Dynamics 365 for Finance and Operations module menu3. It provides a user-friendly experience when working with Subscription billing3. The solution comprises three modules that can be used independently or together2:

1. Recurring Contract Billing: This module enables recurring billing and price management, providing control over pricing, billing parameters, contract renewal, and consolidated invoicing2.
2. Revenue and Expense Deferrals: This module manages revenue and enables real-time insight into monthly recurring revenue2.
3. Multiple Element Revenue Allocation: This module helps with revenue compliance by handling pricing and revenue allocation across multiple items2.

Setting Up Subscription Billing

Setting up the subscription billing feature involves enabling it through Feature Management2. However, it can’t be used with the Revenue Recognition feature2. Therefore, you must disable that feature before enabling subscription billing2.

Compliance with International Standards

To comply with International Accounting Standards (IFRS 15) and Generally Accepted Accounting Principles (US GAAP) standards (ASC 606), Finance supports multi-element revenue allocation of revenue for recurring billing scenarios1.

Conclusion

The Billing Subscription Modules in Dynamics 365 F&O offer a comprehensive solution for managing subscription revenue, recurring billing, and multi-element revenue allocation. By understanding these modules, businesses can effectively manage their billing processes and ensure compliance with international standards.