In the Subscription Billing module of Dynamics 365 Finance, there is a limitation in how the system calculates the deferral start date.
Scenario:
When a billing schedule is created for the period 13th Jan 2024 to 12th Jan 2025, the system currently starts the deferral from 13th Jan 2024, matching the billing start date.
However, based on the commonly used 15-day accounting rule, the deferral should instead start from 1st Jan 2024, since the billing start date (13th Jan) falls within the first 15 days of the month. This rule is widely used in revenue recognition where, if billing starts in the first half of the month, revenue is recognized from the beginning of that month.
While the system correctly handles cases where billing starts after the 15th (deferral starts from the next month), it does not apply the same logic for dates within the first 15 days — and it does not allow any configuration or automation to support this.
Comments
Hi Kitty GeigerThank you for your response. However, I believe there may have been a misunderstanding regarding the requirement.I am looking to change the start date of the deferral, not the billing end date.Please review the scenario carefully:The billing schedule start date is 13th January 2024.I have enabled Rule-15 from the deferral parameters.Based on this rule, the deferral start date should be 1st January 2024, not 13th January 2024.When I attempt to manually set the deferral start date to 1st January 2024 on the billing schedule deferral form, I receive the following error:“Deferral start date should be greater than or equal to billing start date.”Please advise on how to handle this situation so that the deferral can start on 1st January 2024 as per the rule.
Category: Subscription Billing
There are 2 settings currently (version 43). one toggle on billing schedule parameters to align deferral dates to billing: iI you turn this off then on the ARED parameters you can choose a different document start date : Rule 15 is currently an option. System defaults to Document date but you can choose Rule 15, First of current Month or first of next Month.
Category: Subscription Billing
Informative, thanks for sharing
Category: Subscription Billing