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Finance | Project Operations, Human Resources, ...
Suggested Answer

Deferred revenue with discount

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Posted on by 5

Hello,

Has anyone done the setup to manage the discount in revenue recognition?

Thank you

I have the same question (0)
  • Suggested answer
    SREEPRIYA KOLAGANI Profile Picture
    on at

    Hi Fabiola,

    Though I never worked on this topic, here is the information I found.

    (Revenue recognition > Setup > General ledger parameters)

    • Enable discount allocation method â€“ Set this option to Yes to determine the revenue price through allocation of the fair market value that is defined in the revenue price for each released product. This allocation includes allocation of any line discounts across the items. If this option is set to No, the system uses the median price that is defined in the revenue price for each released product. If this option is set to No, but no median price is set up for the released products, allocation of the revenue price doesn't occur.

    • Include header discounts â€“ Set this option to Yes to determine the revenue price by allocating header discounts across products. If this option is set to No, the header discount isn't included in the revenue price allocation.

    You can refer the available docs - https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/revenue-recognition-setup

    Hope this helps.

    Thanks,

    Sreepriya.

    Kindly mark this thread 'Yes' if this is answered your query which may help other community members in this forum.

    Note: This post is my own opinion and does not necessarily reflect the opinion or view of my company.

  • Fabiola Profile Picture
    5 on at

    Hi Sreepriya,

    thank you for your feedback.

    I have read and tried this setup but the total recognizable amount does not consider the discounted amount but the amount without discount.

    I have the same behavior when enter a discount in the sales order line or ales order header.

    I would like to know if anyone has encountered the same problem or if I have misinterpreted the setup in the case of discount or if it is incomplete.

    Thanks,

    Fabiola

  • ToddB Profile Picture
    on at

    Hi Fabiola,

    I found the below in regard to Revenue recognition: Discount not considered for Deferred COGS when SO and PO are linked.

    pastedimage1617047992963v1.png

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