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Subscription billing: Revenue deferral on project sales order

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Posted on by 15

Hi all,

Our customer has sales orders connected to projects, where they today use the revenue recognition functionality to accrue revenue on the lines. Now that revenue recognition is being deprecated, we will replace it with the revenue deferral funcionality included in subscription billing. However, we cannot figure out in version .33 how to activate revenue deferral on SO lines in a project. 

If we create a standalone sales order, not connected to a project, the "Deferrals" button is active on the line and we can enter the deferral details. But as soon as the SO is created from a project, the button is greyed out. 

We believe that we have activated all relevant features, but there could be something we have missed.

Since the revenue recognition functionality is removed in october, we need to solve this soon. The customer has a large number of sales orders with accrued revenue coming in through an integration and this integration needs to be re-mapped to work with the new revenue deferral functionality instead.

Does anyone know how to activate the revenue deferral on project sales orders? 

Thank you!

Categories:
  • Subscription billing: Revenue deferral on project sales order
    Hi 
     
    Is anyone still having this issue? I've also logged a case with MS as the deprecation of revenue recognition was moved back to Jan 2024 but there is still no way to raise a project SO and apply deferral.
     
    Thanks
  • Suggested answer
    AnnaBSvantesson Profile Picture
    AnnaBSvantesson 15 on at
    RE: Subscription billing: Revenue deferral on project sales order

    To anyone interested in this issue: I have now spoken to Microsoft and it turns out that Deferrals for project sales orders is not available until version .35 and furthermore, deferrals of stocked items is not even developed yet. So no wonder it was not working.

    They also say that deprecation of the old revenue recognition functionality will be done in version .36. This is an interesting timeline given that all the replacing functionality is not developed or released yet.

  • AnnaBSvantesson Profile Picture
    AnnaBSvantesson 15 on at
    RE: Subscription billing: Revenue deferral on project sales order

    Hi,

    It is a T&M project. Thank you, I'll check it out. We have been through the MS documentation on how to set up deferrals, but cannot find anything specific on project sales orders.

  • Suggested answer
    saurabh bharti Profile Picture
    saurabh bharti 14,881 Super User on at
    RE: Subscription billing: Revenue deferral on project sales order

    Hi ,

    What is the project type? because subscription billing is supporting only T&M ?

    Apart from this there are few blogs , just check Setups

    exploredynamics365.home.blog/.../

  • AnnaBSvantesson Profile Picture
    AnnaBSvantesson 15 on at
    RE: Subscription billing: Revenue deferral on project sales order

    Hi,

    Thank you. We have enabled it but it does not look the same in our environment: 

    pastedimage1683801434064v1.png

    What version are you on? 

    We are on 10.0.33 and it is a non production environment we are testing in so far:

    pastedimage1683801510656v2.png

    I cannot find any other feature that seems relevant unfortunately.

  • Suggested answer
    Gaurangkumar Jani Profile Picture
    Gaurangkumar Jani 4,470 Super User on at
    RE: Subscription billing: Revenue deferral on project sales order

    Hi AnnaBSvantesson 

    Have you tried to enable Subscription functionality for Propject?

    pastedimage1683800072855v1.png 

    AS revenue recognition module is not available anymore this module is communing with new features and this is one of the new preview feature, I would suggest doing testing of this one on non production environment, this might resolve your issue of deferral.

    Please let us know if this helps.

    Thanks,

  • AnnaBSvantesson Profile Picture
    AnnaBSvantesson 15 on at
    RE: Subscription billing: Revenue deferral on project sales order

    Hi Charlotte,

    The sales order is not created from a billing schedule. The sales order is created directly in the project, from an integration. The only functionality we need is to be able to set the number of periods to accrue the revenue over, and the start date for the revenue recognition. This is done today with the revenue recognition functionality.

    What we need is to be able to use the "Deferrals" functionality on a project SO the same way as is done when the SO is created outside the project.

  • Suggested answer
    Charlotte X Profile Picture
    Charlotte X on at
    RE: Subscription billing: Revenue deferral on project sales order

    Hi Anna,

    When a sales order is created from a billing schedule, all values on the Deferrals or Create credit note page are read-only, and the deferral parameters can't be edited. To edit the values, use the Modify schedule page.

    Please refer to this MS Doc:

    Deferral transactions in Subscription billing - Finance | Dynamics 365 | Microsoft Learn

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