Revenue management options in Microsoft Dynamics 365 Finance and Operations

Rahul Mohta

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options of 'Revenue management in New Microsoft Dynamics AX'

Below are some of the most common used revenue management capabilities:

Sales Order

•Deferred revenue on delivery

•Invoicing and revenue at the same time

From Oct 2019, public available, revenue recognition features which helps in defining revenue schedules and accrue and recognize based on the schedule.

Refer for more details https://docs.microsoft.com/en-us/dynamics365-release-plan/2019wave2/dynamics365-finance/revenue-recognition

Projects – Fixed Price

•Billing based on on-account schedule

•Revenue recognized based on various principles

Projects – Time & Material

•Fees

•Hours

•Expenses

•Items

•Sales orders

•Subscription revenue

•Deferred Revenue

•Revenue recognition schedule

Let us explore Fixed Price projects revenue recognition principles. Suggesting the different options that can be leveraged and their use case scenarios:

No WIP

•Revenue is recognized immediately upon invoicing

Percentage complete principle

•Invoicing as per milestones

•Recognize revenue periodically based on completed percentage

•Percentage complete can be based on forecast consumption or human decision basis

Completed contract principle

•Billing as per milestones

•Recognize revenue only once and at the end of the contract.

Straight line principle

•Billing as per milestones

•Recognize revenue periodically based on timescale distribution