Set up and work with subscription billing in Dynamics 365 Finance

Dynamics 365 Finance enables you to manage subscription revenue and recurring billing by working with billing schedules. To comply with International Accounting Standards, and Generally Accepted Accounting Principles standards, Finance supports multi-element revenue allocation of revenue for recurring billing scenarios.

Dynamics 365 Finance enables you to customize and implement recurring contract billing features to your organization. You might use recurring contract billing to prearrange a schedule to automatically charge a customer. By implementing recurring contract billing features into your organization, you'll have greater control over item and contract billing, in addition to automating renewals and allowing flexible pricing models. Overall, this feature saves your organization time and will satisfy the customers' needs by providing complete and accurate invoices on multiple billing schedules.

Revenue and expense deferrals are implemented in an organization’s billing schedule to distribute expenses over a certain period. Often, deferrals are seen in telecom and technology industries as they move to subscription and upfront billing where organizations pay long term, quarterly, or annually. Membership organizations use deferrals as they shift to annual, semi-annual, or quarterly memberships.

Multiple element revenue allocation is a way for your company to track the revenue of subscription billing items individually. This module provides a general overview before exploring some configurations and features that are available within the subscription billing module.