Introduction
Microsoft Dynamics 365 Finance supports complex pricing and billing models so that you can manage and recognize revenue at the line level.
Any organization that uses subscriptions would benefit from using the Subscription billing features. Some cases can include recurring software subscription, physical item subscriptions, and recurring fees for equipment rentals. Conversely, organizations with usage-based billing can use Subscription billing for billing that's based on professional service hours provided and billing that's based on consumption.
The functionality supports recurring contract billing, revenue, expense deferrals, and multi-element revenue allocation. You can use these components together or independently as your organization requires. It helps organizations manage subscription revenue opportunities and recurring billing through billing schedules and allocation of revenue to comply with International Accounting Standards (International Financial Reporting Standard 15 [IFRS 15]) and Generally Accepted Accounting Principles (US GAAP) standards (Accounting Standards Codification Topic 606 [ASC 606]).
Recurring contract billing: Provides control over pricing and billing parameters, contract renewal, and consolidated invoicing.
Revenue and expense deferrals: Eliminates manual processes and dependency on external systems by managing revenue and enabling real-time insight into monthly recurring revenue.
Multi-element revenue allocation: Serves to help revenue compliance by handling pricing and revenue allocation across several items.