To simplify the processing of subscription contracts, Dynamics 365 Business Central has introduced a new billing module with the recently released October version.
Companies from a wide range of industries are increasingly taking advantage of digitalization and adapting their product and service portfolios to subscription-based business models. The sale of goods and services on a subscription basis ultimately makes it possible to generate lucrative recurring revenue.
With the latest fall version 2024, the subscription contracts can now be conveniently managed in Business Central. The new subscription module offers a new role in the rolecenter, significantly reducing the time and effort required to organize and invoice contracts.
Business Central supports many different subscription scenarios. There are a number of simple processes for managing portfolios of goods and services that are invoiced at regular intervals (e.g. services, hardware maintenance, leasing payments, rents etc.). The sale of goods and services can be combined in mixed subscription contracts (for customers and vendors), which contain information on items, services and billing schedules (e.g. terms, billing dates, notice periods).
The creation of subscription contracts is facilitated by templates that provide various standard parameters and schedules for recurring billing. For example, current prices can also be managed and future price updates can be planned. On the accounting side, posting accruals to balance sheet accounts is automated. Moreover revenue or expense is assigned to the correct periods in the income statement to the correct periods in the income statement.
Functionalities of the new billing module:
- Contracts for which goods and services are regularly invoiced
- Billing plans with flexible parameters tailored to typical use cases for recurring billing
- Usage-based and automated billing
- Integration of contract accruals and deferrals
- Revenue recognition based on billing plans
- Contract updates (parameters and prices)
- Standard reports for contracts, customers, billing plans, realized sales, future billing dates and amounts etc.