About subscriptions and accrued revenue
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
A subscription is an agreement between your organization and a customer. This agreement requires the customer to prepay for periodic or regular services. A subscription can be used for Fee - subscription transactions that are created for a Time and material project. These transactions are then applied to the Accrued revenue - subscription account. The transactions can also be viewed in a profit and loss statement.
To post the accrued revenue on a subscription, the Accrue revenue check box in the Subscription groups form must be selected for the subscription group that the subscription is assigned to.
When you invoice transactions for which revenue has been accrued, the Accrued revenue - subscription account is debited by the same amount that the Invoiced revenue account is credited. As a result, revenue in the profit and loss account becomes 0 (zero).
When accrued revenue is posted, the WIP - subscription account is debited by the accrual amount, and the Accrued revenue - subscription account is credited by the accrual amount.
If you reverse an accrued transaction, the Accrued revenue - subscription account is debited by the same amount that the WIP - subscription account is credited.
Note
You cannot post accrued revenue until the invoice for the subscription is posted.