Revenue split templates in Subscription billing

Use the Revenue split template page to set up templates for revenue split. Revenue split consists of a parent item that has child items. This type of item is often sold to customers as a single item or bundle.

For example, a computer item can be created in the following way:

• Parent item: Subscription Silver

• Line (child) items:

  • Support
  • Maintenance
  • License

When you create a parent item, keep the following restrictions in mind:

• An item can be specified as a parent item only one time.
• The parent item can be selected as a child item in the same template.
• A valid template requires at least one child item.
• An item can be specified as a child item for more than one bundle item.
• Each parent-child relation must be unique.

Create a parent item that has child items

Follow these steps to create a parent item that has child items.

1. On the Revenue split template page, select New.

2. In the Parent item field, select a parent item. The Variant number field is automatically updated. You can change the value as you require.

3. In the Allocation method field, select an allocation method.

4. In the Component items list, select Add to add child items.

5. If you selected Percentage in the Allocation method field, specify a percentage in the Percentage field.

   • If you selected Equal amount in the Allocation method field, the Percentage field is automatically updated so that every item has an equal percentage.
   • If you selected Variable amount, Zero parent amount, or Zero amount in the Allocation method field, the value of the Percentage field remains 0 (zero) and can't be changed.

6. Select Save.

Fields

The Revenue split template page contains the following fields.

Field	Description
Parent item	Select an item number. This item becomes the parent item for the bundle item that you create.
Product name	The product name.
Allocation method	Select the allocation method: Equal amount – The allocation percentages are automatically calculated and equally split among all the items in the template. Percentage – You can specify a percentage amount for the allocation. The sum of all percentages must equal 100. Variable amount – Child items that are added have a net amount of 0 (zero). The price of the child items must be specified at the transaction level. Zero amount – The parent item retains its unit price and net amount. All child items have a net amount of 0 (zero). Zero parent amount – The parent item has a fixed net amount of 0 (zero). All child items are treated like standard items. No validation is done to verify that the sum of child item amounts equals the parent item amount.
Component items
Component item	Select an item number. This item is a child item.
Variant number	Select the variant number for the item.
Product name	The product name.
Percentage	The allocation percentage for the milestone: If the Allocation method field is set to Percentage, you can specify the percentage. If the Allocation method field is set to Equal amount, the percentage is automatically calculated so that every item in the template has an equal percentage. If the Allocation method field is set to Variable amount, Zero parent amount, or Zero amount, the percentage is 0 (zero) and can't be edited. The value of this field can be any positive number between 0 (zero) and 100. The sum of all the percentages must equal 100.
Total percentage	The sum of values in the Percentage column. If the Allocation method field is set to Equal amount or Percentage, the sum of all the percentages must equal 100. If the Allocation method field is set to Variable amount, Zero parent amount, or Zero amount, the total percentage is 0 (zero).

Revenue split on a sales order

To create a sales order that has an item that is set up for revenue split, follow these steps.

1. On the Sales order page, create a sales order.
2. On the line for each item that is set up for revenue split, select the Revenue split checkbox. That item becomes the parent item. If the template is already set up, the child items automatically appear in the list.
3. To add more child items, select Add revenue split child, and select the child item that you want to add.
4. Save the order.

Revenue split with billing schedules

To create a billing schedule that has an item that is set up for revenue split, follow these steps.

1. On the All/Active billing schedules page, create a billing schedule.
2. On the line for each item that is set up for revenue split, select the Revenue split checkbox. That item becomes the parent item. If the template is already set up, the child items automatically appear in the list.
3. To add more child items, select Add revenue split child, and select the child item that you want to add.
4. Continue with the steps for working with the billing schedule.

Note

If the Automatically create revenue split option is set to Yes on the Recurring contract billing parameters page, the following actions occur:

• If the line item is set up as the parent item in a revenue split template, the Revenue split checkbox is automatically selected.
• The child items are automatically entered on the sales order or billing schedule line.

If the Automatically create revenue split option is set to No, the behavior is as explained earlier.

Note

A feature was added in Dynamics 365 Finance version 10.0.32 that allows a Billing schedule line with revenue split to set Renew automatically to Yes.

Additional revenue split information

When you add an item that is part of a revenue split, note the following information:

• The parent amount can't be deferred.

• The start date, end date, quantity, unit, site, and warehouse values of child items are based on the parent item. These values can't be changed for the child items. All changes must be made to the parent item.

• The pricing method is Flat and can't be changed.

• Child items can be added or removed.

• Parent and child items must use the same item group.

• Child items can have one of the following setups:

  • The Billing frequency and Billing intervals fields are set to the same value as the parent item.
  • The Billing frequency field is set to One-time. In this case, the Billing intervals field is automatically set to 1.

• The sum of the net amounts of the child items equals the parent amount. If the allocation method is Zero amounts, both the sum of the child item amounts and the parent amount are 0 (zero).

  Note

  If the allocation method is Zero parent amount, the (non-zero) sum of the child items doesn't equal parent amount, which is 0 (zero). This allocation method is used for internal purposes, so that employees can see the child items. However, customers can only see the parent item.

• If the multiple element arrangement (MEA) type of the sales order is Single, the corresponding multiple element revenue allocation transaction line is created when the parent and child items are added.

• If the allocation method for a revenue split is Equal amounts, and the parent amount is changed, the amounts are recalculated for all child lines.

• For a revenue split where the allocation method is Variable amount, the following behavior occurs:

  • The net amount of the parent item appears in the Parent amount column. This value can be edited. However, the unit price, net amount, and discount are 0 (zero) and can't be edited.
  • The unit price of child items is 0 (zero). You can edit the unit price or net amount. When you edit one value, the other value is automatically updated.

• For a revenue split where the allocation method is Percentage, the following behavior occurs:

  • The net amount of the parent item appears in the Parent amount column. This value can be edited. However, the unit price, net amount, and discount are 0 (zero) and can't be edited.
  • The net amount of child items is calculated as Percentage × Parent amount.

• For a revenue split where the allocation method is Equal amount, the following behavior occurs:

  • The net amount of the parent item appears in the Parent amount column. This value can be edited. However, the unit price, net amount, and discount are 0 (zero) and can't be edited.
  • The net amount of child items is calculated by dividing the parent amount equally among all the child items.
  • If child items are removed or added, the net amount and unit prices are recalculated so that all child lines have equal amounts.
  • If the parent amount can't be divided equally, the net amount and unit price of the last child item might be slightly more or less than the net amount and unit price of the other child items.

• For a revenue split where the allocation method is Zero amount, the following behavior occurs:

  • The unit price, net amount, and discount can be edited. The parent amount is 0 (zero) and can't be edited.
  • The quantity, unit, site, and warehouse values of child items are based on the parent item. You can't change these values for the child items. All changes must be made to the parent item.
  • The unit price and net price of child items is 0 (zero) and can't be edited.

• For a revenue split where the allocation method is Zero parent amount, the following behavior occurs:

  • The unit price, parent amount, and net amount of the parent item are 0 (zero).
  • In a billing schedule, the child lines appear as if they were manually added, and all values are updated based on the selected billing schedule group. These values can be edited. For child items, you can access the Escalation and discount and Advanced pricing options by using the Quantity entered, Unit price, Discount, and Net amount fields in View billing details.
  • On a sales order, the child lines have a discount and discount percentage of 0 (zero).
  • The billing frequency of the parent and the child items can be changed, and each line can have a different frequency. However, the parent item is automatically updated so that it uses the shortest frequency from among its child lines. For example, a revenue split has two child items, one of which uses the Monthly billing frequency and the other of which uses the Annually billing frequency. In this case, the billing frequency of the parent item is updated to Monthly.