Sandip Lulwani

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.