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

Subscription Billing - Multi-revenue allocation and deferral item not been created

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Posted on by 10

Hi all

I have been setting up and configuring multi-element revenue (MEA) templates as we have a scenario where a client wants to allocate revenue to a service item bought as part of the subscription. The customer does not have a set price list for each subscription. Each deal is negotiated with a prospect before purchasing. 

The problem I have encountered is that a deferral schedule is not being created for both items. 

I have created an MEA template and provided a deferred revenue contract account. 

When I create the Billing schedule, I add the following lines:

Subscription A - Unit price 3000 - Deferred item

Subscription B - Unit price 0 - Deferred item

I then click the revenue allocation button and select single and the MEA template I want to use. I edit the standalone price to allocate revenue to Subscription B. When I view the billing details for each item, I can see that the period revenue has been allocated based on my inputs in the revenue allocation form. 

I generated the invoice and viewed the voucher. Based on the subscription posting profile, I can see that the period revenue has been deferred to the correct main accounts. 

However, when I go to the deferral schedules - A single deferral schedule has been created only for Subscription A with the full amount of the invoice. 

Previously a deferral schedule was created for both. Can anyone assist in guiding me if I have missed setups? 

I have the same question (0)
  • Suggested answer
    Charlotte X Profile Picture
    on at

    Hi Stuart,

    You can use the All deferral schedules or Active deferral schedules page to review the details about a deferral schedule.

    If the deferral schedule has any recognized or externally posted lines, and you modify the deferral schedule, the resulting behavior of the deferral schedule depends on the recalculation date and the deferral end date of recognized lines. 

    Please refer to the following MS Docs:

    Set up multiple element revenue allocation - Finance | Dynamics 365 | Microsoft Learn

    Deferral schedules in revenue and expense deferrals - Finance | Dynamics 365 | Microsoft Learn

  • Stuart L Profile Picture
    10 on at

    Thank you, Charlotte,

    The problem was that only one deferral schedule was being created for one item and not the other item even though both were deferred items.

    I have since found the problem that was shared in another blog post. It seems if the customer split parameter is set to Yes in the recurring parameters it will cause the issue. With this turned off I did not have an issue.

    Not sure why the customer split functionality does this.

    Regards

    Stu

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