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Hi,
we are selling subscriptions to our customers where we usually issue a prepayment invoice before we deliver.
Lets assume the total value of the order is 14 000€.
For revenue we want to recognise the following amounts:
With Delivery: 2000€ (Downpayment/Prepayment that is paid before delivery)
1.-12. month: 1000€ each
Total: 14000€
The invoices will be exactly the amount of revenue we want to recognise -> no issue with this in F&O.
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Now the issue is, that our sales people negotiate different prepayments from deal to deal. It could be that for one deal the prepayment is 0€, but the monthly rate is higher. Non the less we still want to recognise 2000€ revenue with delivery:
Order Value: 14000€
Revenue same as above (12k€ + 12 * 1k€), but the invoice / billing schedule changes:
No prepayment invoice
1.-12. month: 1166.66€ ( = 14000€ / 12)
Total Invoice Amount: 14000€
The totals of invoiced amount and recognised revenue are the same - of course - but it seems we cannot handle this in Dynamics F&O as revenue can only be recognised on billed invoices? In the second case, we want to recognise 2000€ even though we did not yet bill the customer anything.
Any ideas how to solve this? Is there an option in F&O to handle this?
Thanks for your help!
Using the new Revenue Recognition module, it does not seem to be possible to handle this case,
Hi,
I think that the revenue recognition module can handle this.
In your second case you want to record 2000 EUR as revenue even though you did not bill anything.
The new revenue recognition module can handle that by setting up a $0 sales price and a $2000 fair market price.
You still need to create and post a $0 invoice to get the voucher created.
Please have a look at the MS docs websites for the new revenue recognition module and the videos available there.
Best regards,
Ludwig
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