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Hello BC Consultants,
I have a Query regarding Inventory items setup for Software SaaS licences in Business Central.
I am wondering has anyone used Inventory type items for SaaS Licences. Where the licence has a limited time period (Example 1 year, 2 year , 3 Year etc). Then the licence renews after the billing term. The price can be the same or can be up or down at renewal date.
I have noticed in new documentation that Microsoft say that Inventory item type in Business Central can now be subscription licenses/SaaS Licences. (Microsoft Quote -This can also include non-physical items, such as software licenses and subscriptions)
Tammy Torgerson - Tammy Torgerson had a previous post on the forum that I can't find that was suggesting using Inventory type items for SaaS Licences offered more benefits than using non Inventory Item. I be interested to see the advantages.
The Scenario would be this.
We buy a 100 SaaS licences from our Vendor with a billing Term, 1 Year, 2 Year, or 3 Year. We invoice the customer for the 100 licenses with same billing Period (So we have zero Inventory) So we are basically just fulfilling orders as we are the reseller of the SaaS licences. I tested Drop Shipment but as I use a Recurring Invoice app to invoice all our SaaS Licences, Drop Shipment wonts work. I can only use Inventory item or Non Inventory Item.
I have been using non inventory item type for these licences mainly due to the fact that I don’t need to know how many licences I have sold and the Direct cost for the licence for the Billing Term stays the same until the next renewal.
However I am re looking at the item setup as I am going to be integrating Sales Hub to BC and want to get the item setup right to avoid having to change to new Item types again in the future.
Thanks
Hi Ben, Thanks for replying. I had looked at the service option but I use a recurring service contract app from Binary stream which covers the service contract piece so I normally use non inventory item but wondering if anyone used the inventory type item for Software licences.
Have you considered using the Service module for this? You can set the license up as a Service Item and a related Service Contract which handles the billing and renewal time period.
The only downside to this is that Service requires the Premium license. If you aren't already using Premium, it is an additional $30/u/m cost. That being said, the additional cost may be worth the ease the Service capabilities can bring to your scenario.
I would encourage you to reach out to your BC partner to review the service capability as a solution to your need.
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