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Set Deferred Revenue Schedule to begin in future

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Hello.
We would like to create an invoice to the customer to bill them for an upcoming subscription renewal, where invoicing today for the future period. For example, if today is May 1, we would invoice the customer today for the subscription period that begins on July 1, 2024, and runs through June 30, 2025. Based on subscription billing revenue deferral parameter, the first day of next month is as far in the future as I can set the start of the first revenue recognition period.
Is there a way to set the deferral period start to July 1, 2024 for an invoice created May 1?
Thanks.

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KG-18041738-0 21 on at

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Turn off the setting in SBS parameters align billing to deferral. This will allow you to override the Deferral start date. Then you can create a 12 month template and assign the template so you can have a start date in the future and then 12 months (or whatever length).

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Saif Ali Sabri 2,354 Moderator on at

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Yes, it is possible to set the Deferred Revenue Schedule to begin on a future date like July 1, 2024, for an invoice created on May 1, 2024, by following a specific setup in Dynamics 365 Finance – Subscription Billing. The behavior you're seeing (limiting start to the first day of the next month) is controlled by the Revenue deferral start date rule.
✅ Solution: Adjust Revenue Deferral Settings
To allow deferral to begin on a date further in the future (e.g., July 1, 2024), follow these steps:

1. Navigate to the Revenue Deferral Parameters

Go to Subscription Billing > Setup > Revenue deferral parameters.

2. Review the Parameter: "Revenue deferral start date rule"

This parameter determines when the first deferral period can start.

Options typically include:

Invoice date

First day of next month

Billing schedule start date (this is the one you want)

✅ Set this to: Billing schedule start date
This setting will align the revenue recognition start with the start date of the billing schedule line — in your case, July 1, 2024.

3. Set the Billing Schedule Line Correctly
When creating the billing schedule line for the subscription:

Start date: July 1, 2024

End date: June 30, 2025

Make sure this aligns with the deferral period you intend.

4. Create and Post the Invoice

Create the invoice with the May 1, 2024 date.

The system will now allow the revenue deferral schedule to begin on July 1, 2024, based on the billing schedule line's start date.

✅ Result:

The customer gets billed today (May 1).

Revenue is deferred and begins recognition from July 1, 2024, over 12 months.

Let me know if you're using Revenue Recognition outside of Subscription Billing or if you're integrated with Project Operations or Sales Order Invoicing — the setup might vary slightly.

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