diff --git a/business-central/SRB/billing-automation.md b/business-central/SRB/billing-automation.md new file mode 100644 index 000000000..b8aaa3f49 --- /dev/null +++ b/business-central/SRB/billing-automation.md @@ -0,0 +1,122 @@ +--- +title: Billing automation +description: Automate recurring billing up to a configured degree. +author: TobiSIT +ms.author: bholtorf +ms.reviewer: bholtorf +ms.topic: concept-article +ms.search.keywords: +ms.search.form: 8067_Primary, +ms.date: 12/04/2025 +ms.service: dynamics-365-business-central +ms.custom: bap-template +--- + +# Billing Automation Overview + +Automated invoicing streamlines the billing process by enabling the automatic creation, posting, and management of invoices and credit memos for customer contracts. The degree of automation is configurable, allowing organizations to tailor the process to their operational needs and compliance requirements. + +## Overview + +Automated invoicing helps internal sales management and finance teams increase efficiency by reducing manual effort in contract billing. Depending on contract complexity, the process can be fully automated, partially automated, or manual, with clear controls and error handling to ensure accuracy and compliance. + +## Prerequisites + +- Access to the Subscription Billing module. +- Appropriate user permissions for automated contract invoicing (see User Setup). +- Configured billing templates for relevant contract types. + +## Automation Scenarios + +Contracts can be categorized as follows: + +- **Fully Automated:** The same invoice is posted every month; the process can be entirely automated. +- **Partially Automated:** Invoices may change; automation is used to create invoices, but manual review is required before posting. +- **Manual:** Contracts require adjustments each period; automation is limited to creating billing proposals. + +> **Note:** Vendor contract invoicing is not automated. + +## How Automated Invoicing Works + +### 1. Billing Templates + +Billing templates define how and when invoices are generated. Key fields include: + +- **Posting Date Formula:** Determines the posting date for invoices (e.g., first of next month). +- **Document Date Formula:** Sets the document date for invoices and credit memos. +- **Document per:** Specifies how billing lines are grouped (by contract, contract partner, or invoice recipient). +- **Automation:** Controls the automation level (e.g., create proposal and documents, post documents). + +> **Note:** Automation for posting documents can be set up entirely in the job queue. + +Templates can filter contracts by contract type and can be scheduled for automation via job queue entries. + +### 2. Job Queue Automation + +- Automated templates are processed by a dedicated job queue entry (Codeunit 8014, "Auto Contract Billing"). +- The job queue creates billing proposals and documents based on template settings. +- Invoices can be posted separately with a second job queue entry (Report 297, "Batch Post Sales Invoices"). + +### 3. User Permissions + +To set up billing automation, first make sure users can edit billing templates and then additionally activate the "Auto Contract Billing" option in User Setup. + +### 4. Error Logging and Handling + +- All errors during automation are logged for user review. +- If a document line causes an error, the entire document is discarded to prevent incorrect postings. +- The process is designed to continue running efficiently, skipping only problematic lines or documents. + +#### Error Log Fields + +- **Billing Template:** Template code processed. +- **Error Text:** Detailed error message. +- **Subscription/Line, Contract No./Line, Contract Type, Assigned User, Salesperson, Timestamp:** Contextual details for troubleshooting. + +A dedicated error log page ("Contract Billing Error Log") is available via the “Tell Me” search (Alt+Q). + +### 5. Technical Details + +#### Relevant Fields + +- **Billing Templates:** Posting Date Formula, Document Date Formula, Customer Document per, Automation. +- **User Setup:** Auto Contract Billing (Boolean). +- **Sales Header (Invoices/Credit Memos):** Auto Contract Billing (Boolean, system-controlled). + +#### Date Formula Logic + +- If date fields are empty, “today” (work date) is used by default. +- Date formulas like “+0D” can be used for dynamic scheduling. + +#### Job Queue Setup, part 1: Create Documents + +- A job queue entry is created for automated contract invoicing, with retry and delay settings for reliability (Codeunit 8014, "Auto Contract Billing"). The billing template's description is taken over for the job queue entry. +- The automation object processes the corresponding billing template (determined by job id). + +#### Job Queue Setup, part 2: Batch Posting + +- Create a separate job queue entry for posting sales invoices using Report 297 ("Batch Post Sales Invoices"). +- To avoid posting all invoices, apply filters on the report request page before running the batch. +- Use the "Recurring Billing" and "Auto Contract Billing" fields as filters when performing batch posting. + +### 6. Error Handling in Automation Steps + +- If a billing line cannot be created, the related document is not generated, and all affected lines are logged. +- If a document cannot be created, it is skipped, and the error is logged. +- The automation excludes any subscriptions or documents with errors from further processing. + +> **Note:** The order of processing is determined by the job queue entry, ensuring consistent results even with overlapping templates. + +## Best Practices + +- Use automation for contracts with predictable, recurring billing. +- Regularly review error logs to address setup or data issues. +- Limit permissions for automated template management to prevent accidental changes. +- Test automation with a subset of contracts before full deployment. + +## Related Topics + +- [Recurring Billing](#) +- [Job Queue Management](#) +- [Error Log Review](#) +- [User Permissions and Security](#) diff --git a/business-central/SRB/glossary.md b/business-central/SRB/glossary.md index 183480068..952b9aa75 100644 --- a/business-central/SRB/glossary.md +++ b/business-central/SRB/glossary.md @@ -18,17 +18,18 @@ The most important terms can be looked up in this glossary. ## A -* **Additional Service Commitments**
Service commitments that can be selected in addition to the standard service commitments. +* **Additional Subscription Packages**
Subscription packages that can be selected in addition to the standard Subscription packages. +* **Amount**
Indicates the amount of a subscription line minus the discount granted. ## B * **Billing Base Period**
The period of time to which the Service Amount applies. For example, enter 1M here if the amount refers to one month or 12M if the amount refers to one year. -* **Billing Date**
The cut-off date by which service commitments to be billed are considered. +* **Billing Date**
The cut-off date by which subscription lines to be billed are considered. * **Billing line**
Shows the history of billing contract lines. When you post recurring bills, they're created from the billing proposal lines. * **Billing Proposal**
The billing lines created using one or more billing templates become a billing proposal. The proposal is the basis for creating the contract invoices. * **Billing Proposal Lines**
Proposal lines are a preview of the billing lines. Lines for the same contract line and different billing periods are combined in the invoice. -* **Billing Rhythm**
Specifies the rhythm at which the service commitments are billed. A Dateformula can be used to set the rhythm to, for example, monthly, quarterly or annual calculation. -* **Billing Template**
The Default name used to determine the service commitments to be billed. +* **Billing Rhythm**
Specifies the rhythm at which a subscription line is billed. A Dateformula can be used to set the rhythm to, for example, monthly, quarterly or annual calculation. +* **Billing Template**
The default used to determine the subscription lines to be billed. ## C @@ -41,7 +42,7 @@ The most important terms can be looked up in this glossary. * **Contract Type**
Indicates the classification of the contract. * **Contractor**
Customer or supplier for whom the contract is created. * **Credit Memo Preview**
Function for creating a print preview for an unposted credit memo. -* **Customer Subscription Contract**
Customer subscription contracts can be used to retrieve and process customer-side service commitments before you bill customers. +* **Customer Subscription Contract**
Customer subscription contracts can be used to retrieve and process customer-side subscription lines before before creating customer posting documents. ## D @@ -49,24 +50,24 @@ The most important terms can be looked up in this glossary. ## E -* **End User**
The end user is the customer to whom the service commitments were sold. You specify end users for subscriptions. +* **End User**
The end user is the customer to whom a subscription was sold. You specify end users for subscriptions. ## I * **Initial Term**
The Dateformula used to calculate the minimum term of subscription line. If the **Initial Term** is specified but you don't enter a **Subsequent Term**, the **Service End Date** is set to the end of the **Initial Term**. * **Invoice Preview**
Action to create a print preview for an unposted invoice. -* **Invoicing Item**
An item so identified is used to bill extra service commitments sold for another item. +* **Invoicing Item**
An item so identified is used to bill extra subscription lines sold for another item. * **Invoicing Item No.**
Indicates which item in the contract invoice is used to bill for the periodic service in a subscription package line. * **Invoicing via**
Indicates whether the service is billed via a contract or sales document in a subscription package line. ## N -* **Next Billing Date**
Indicates the date of the next possible billing in service commitments and contract lines. +* **Next Billing Date**
Indicates the date of the next possible billing in subscription lines and contract lines. ## P * **Posting document**
These documents are invoices or credit notes that aren't posted. -* **Price Group**
Specifies the customer price group (for example, in the subscription package) that is considered in pricing the service commitments. +* **Price Group**
Specifies the customer price group (for example, in the subscription package) that is considered in pricing the subscription lines. ## R @@ -75,27 +76,26 @@ The most important terms can be looked up in this glossary. ## S -* **Sales subscription lines**
Services that are part of a line in the quote or order. -* **Service Amount**
Indicates the amount of a subscription line minus the discount granted. -* **Service Commitment**
Service commitments represent obligations to customers and vendors. -* **Service Commitment Item**
Can be used in sales documents, but are charged exclusively through contracts. -* **Service Commitment Option**
Indicates whether a service commitment can be deposited for an item or whether it's an item for billing services. +* **Sales Subscription Lines**
Services that are part of a line in the quote or order. +* **Subscription Item**
Can be used in sales documents, but are charged exclusively through contracts. +* **Subscription Line End Date**
Indicates the date until which the subscription line is valid. +* **Subscription Line Start Date**
The date from which the subscription lines are valid and charged. +* **Subscription Line Start Formula**
Specifies the date from which a subscription line is valid using a formula. By using this Dateformula, the validity can be automatically set to, for example, the first of the following month. If the field remains empty, the subscription line is valid from delivery. +* **Subscription Lines**
Subscription lines represent obligations to customers and vendors. +* **Subscription Option**
Indicates whether a subscription package can be deposited for an item or whether it's an item for billing services. * **Subscription Package**
Use to bundle subscription package lines and manage price groups. Assign subscription packages to items. -* **Subscription Package Line**
Specifications for service commitments are defined using the subscription package line. When the item is entered in a quote or order, the specifications from the subscription package line are applied to the service. -* **Service Commitment Start Formula**
Specifies the date from which a service commitment is valid using a formula. By using this Dateformula, the validity can be automatically set to, for example, the first of the following month. If the field remains empty, the service commitment is valid from delivery. -* **Subscription package line template**
Serves as the default for a service commitment and can be selected in the subscription package line. -* **Service End Date**
Indicates the date until which the service commitment is valid. -* **Subscription**
Subscriptions represent a history of products sold to a customer. Service commitments are created in subscriptions. -* **Service Start Date**
The date from which the service commitments are valid and charged. +* **Subscription Package Line**
Specifications for subscription packages are defined using the subscription package line. When the item is entered in a quote or order, the specifications from the subscription package line are applied. +* **Subscription Package Line Template**
Serves as the default for a subscription line and can be selected in the subscription package line. +* **Subscription**
Subscriptions represent a history of products sold to a customer. Subscription lines are created in subscriptions. * **Subsequent Term**
Specifies a Dateformula for automatic renewal after the Initial Term and the rate at which "Cancellation Possible Until" and "Term Until" are updated. If the field is blank and either the Initial Term or the Notice Period is set at the same time, the Service End Date is automatically set to the expiration date of the Initial Term or the Notice Period. ## U -* **Update Service Dates**
This action updates the cancellation dates. +* **Update Subscription Line Dates**
This action updates the cancellation dates. ## V -* **Vendor Subscription Contract**
Vendor subscription contracts can be used to retrieve and process vendor-side service commitments before creating vendor posting documents. +* **Vendor Subscription Contract**
Vendor subscription contracts can be used to retrieve and process vendor-side subscription lines before creating vendor posting documents. ## Related information diff --git a/business-central/SRB/posting-documents.md b/business-central/SRB/posting-documents.md index 1c0cf5470..40b9d460a 100644 --- a/business-central/SRB/posting-documents.md +++ b/business-central/SRB/posting-documents.md @@ -15,14 +15,14 @@ ms.custom: bap-template Posting documents are invoices and credit memos because these documents can be posted. When creating these documents using the [Recurring billing](recurring-billing.md) page, [!INCLUDE [prod_short](../includes/prod_short.md)] recognizes whether to create an invoice or a credit memo based on the amounts to settle. If the total amount over all lines to be billed is positive, an invoice is created, otherwise a credit memo is created. This applies to both customer subscription contracts and vendor subscription contracts. -The posting documents are available on the respective contract under **Related**. There are different ways to open documents that are or aren't posted. Sales documents are created from customer subscription contracts and purchasing documents from vendor subscription contracts. The documents can also be opened using the following methods: +The posting documents are available on the respective contract under **Navigate**. There are different ways to open documents that are or aren't posted. Sales documents are created from customer subscription contracts and purchasing documents from vendor subscription contracts. The documents can also be opened using the following methods: * **Sales Invoices** A **Recurring Billing** filter is available in the page, which displays only the documents that belong to a contract. * **Sales Credit Memos** - A **Recurring Billing** is available in the page, which displays only the documents that belong to a contract. + A **Recurring Billing** filter is available in the page, which displays only the documents that belong to a contract. * **Posted Sales Invoices** A **Recurring Billing** filter is available in the page, which displays only the documents that belong to a contract. diff --git a/business-central/SRB/recurring-billing.md b/business-central/SRB/recurring-billing.md index 589373143..62916c3ad 100644 --- a/business-central/SRB/recurring-billing.md +++ b/business-central/SRB/recurring-billing.md @@ -24,25 +24,23 @@ The following tables explain the fields and actions on the **Recurring Billing** |Field |Description | |---------|---------| -|**Billing Template** | Select a billing template. To learn more about billing templates, go to [Billing templates](#billing-templates). | -|**Billing Date** | Use the date to suggest the appropriate contract lines for billing based on the **Next Billing Date** field from the contract line. The date is predefined by the billing template, but you can change it. | -|**Billing to Date** | Via the **Billing Rhythm**, each contract line brings the information up to which date it should be billed by default. Via the **Billing to Date** field, this can be specified (differently) for all lines to be created. This can result in shortening or extending the billing period. The field is also predefined via the billing template and can also change it. By means of a limitation it could be achieved, for example, that contract items added during a fiscal year are only invoiced until the end of the year/fiscal year in order to have a uniform billing rhythm again for the next billing period. | +|**Billing Template**|Select a billing template. To learn more about billing templates, go to [Billing templates](#billing-templates).| +|**Billing Date**|Use the date to suggest the appropriate contract lines for billing based on the **Next Billing Date** field from the contract line. The date is predefined by the billing template, but you can change it.| +|**Billing to Date**|Via the **Billing Rhythm**, each contract line brings the information up to which date it should be billed by default. Via the **Billing to Date** field, this can be specified (differently) for all lines to be created. This can result in shortening or extending the billing period. The field is also predefined via the billing template and can also change it. By means of a limitation it could be achieved, for example, that contract items added during a fiscal year are only invoiced until the end of the year/fiscal year in order to have a uniform billing rhythm again for the next billing period.| ### Actions |Action |Description | |---------|---------| -|**Create Billing Proposal** | Goes through all contract lines and suggests the subscription lines to be billed based on the **Next Billing Date** and the **Billing to Date**. By changing the billing template and running the action again, you can add lines to the billing proposal.

If the **Next Billing Date** is greater than the billing date, this line will be ignored. If the **Next Billing Date** is smaller than the Billing Date, the corresponding period (taking the billing rhythm into account) must be invoiced. | -|**Create Documents** | Creates subscription contract invoices or credit memos for lines for which no documents exist. To learn more about documents, go to [Create posting documents](#create-posting-documents). | -|**Clear Billing Proposal** | Deletes the billing proposal. A query follows asking whether to delete the entire billing proposal or only the lines added by the currently selected billing template. | -|**Delete Documents** | Deletes all contract invoices or credit memos for the lines. | -|**Change Billing To Date** | Adjusts the date in the **Billing To** field for all selected lines, and recalculates the value in the **Amount** field. | -|**Delete Billing Line**| Deletes all selected lines. | -|**Refresh**| Updates the lines, for example, if there are warnings. If you resolved the cause of the warning, the warning is removed.| -|**Navigate**| Opens the customer or vendor selected on the line.| -|**Contract**| Opens the contract selected on the line.| -|**Subscription**|Opens the subscription on the line.| -|**Contract Line Dimensions**|Opens the dimensions stored on the associated contract line.| +|**Create Billing Proposal**|Goes through all contract lines and suggests the subscription lines to be billed based on the **Next Billing Date** and the **Billing to Date**. By changing the billing template and running the action again, you can add lines to the billing proposal.

If the **Next Billing Date** is greater than the billing date, this line will be ignored. If the **Next Billing Date** is smaller than the Billing Date, the corresponding period (taking the billing rhythm into account) must be invoiced.| +|**Create Documents**|Creates subscription contract invoices or credit memos for lines for which no documents exist. To learn more about documents, go to [Create posting documents](#create-posting-documents).| +|**Usage Data**|Opens related Usage Data Billings for the line. This action is only available Usage Data Billings exist for the line.| +|**Clear Billing Proposal**|Deletes the billing proposal. A query follows asking whether to delete the entire billing proposal or only the lines added by the currently selected billing template.| +|**Delete Documents**|Deletes all contract invoices or credit memos for the lines.| +|**Change Billing To Date**|Adjusts the date in the **Billing To** field for all selected lines, and recalculates the value in the **Amount** field.| +|**Delete Billing Line**|Deletes all selected lines.| +|**Refresh**|Updates the lines, for example, if there are warnings. If you resolved the cause of the warning, the warning is removed.| +|**Navigate**|Opens the customer or vendor selected on the line.| ### Billing proposal lines @@ -67,7 +65,7 @@ To use a billing template, you must enter filter criteria. The criteria determin In the **Billing Date Formula** field, enter a dateformula that's taken into account when the billing template is used in the **Billing Date** field. This field is then used to filter the subscription lines to bill, based on **Next Billing Date**, when creating the proposal lines. If you don't specify a dateformula, recurring billing uses the work date. -Optionally, you can use the **Billing to Date Formula** field to enter a dateformula that's taken into accountwhen the billing template is used in the **Billing to Date** field. This field is then used to set the end date of the billing in the subscription lines. If you don't specify a dateformula, the field on the **Recurring Billing** page remains empty and lines are proposed based on the information in the contract line. +Optionally, you can use the **Billing to Date Formula** field to enter a dateformula that's taken into account when the billing template is used in the **Billing to Date** field. This field is then used to set the end date of the billing in the subscription lines. If you don't specify a dateformula, the field on the **Recurring Billing** page remains empty and lines are proposed based on the information in the contract line. You can use the **My Suggestions Only** field to filter the billing proposal to lines that you created. diff --git a/business-central/SRB/setup/general.md b/business-central/SRB/setup/general.md index 9d94e0391..2c0e3d0a6 100644 --- a/business-central/SRB/setup/general.md +++ b/business-central/SRB/setup/general.md @@ -23,7 +23,7 @@ If a location requires a dedicated warehouse activity when picking items (The ** You can set a date formula in the **Overdue Date Formula** field that filters for overdue subscription lines in the **Subscription lines - Overdue** cue in the **Subscription Billing** Role Center. For example, you can enter **3D** if you want the cue to count a subscription line as overdue if the subscription line's next billing date is three or more days past the work date. If you leave the field blank, the cue doesn't show anything. -The **Default Period Calculation​** determines which period calculation option is set on a subscription package line. To learn more about the **Align to Start of Month** and **Align to End of Month** options, go to [Managing contracts, subscriptions, and subscription lines](../working-with-contracts/contracts-services-mgmt.md). By changing the default, the value updates in all existing subscription lines commitments, sales subscription lines, and subscription package lines. If the existing records aren't updated, the period calculation isn't changed. Only the default value for creating new subscription package lines changes. +The **Default Period Calculation​** determines which period calculation option is set on a subscription package line. To learn more about the **Align to Start of Month** and **Align to End of Month** options, go to [Managing contracts, subscriptions, and subscription lines](../working-with-contracts/contracts-services-mgmt.md). By changing the default, the value updates in all existing subscription lines, sales subscription lines, and subscription package lines. If the existing records aren't updated, the period calculation isn't changed. Only the default value for creating new subscription package lines changes. **Default Billing Base Period** and **Default Billing Rhythm** are used and applied when contract lines are created manually by the user. Since these values need to be specified per contract line, this setup ensures that the fields are populated properly. diff --git a/business-central/SRB/welcome.md b/business-central/SRB/welcome.md index 526352f71..db717353f 100644 --- a/business-central/SRB/welcome.md +++ b/business-central/SRB/welcome.md @@ -26,7 +26,7 @@ You assign the serviceable items you sell (subscriptions), whether it's the sale * Preview all existing monthly recurring billing and your upcoming invoices * Simplify billing with billing templates * Automatically calculate notice periods -* Use accrual-based posting of income and expenses to profit and loss accounts +* Use deferral-based posting of income and expenses to profit and loss accounts ## Main elements of subscription billing diff --git a/business-central/SRB/working-with-contracts/contract-deferrals-per-contract-line.md b/business-central/SRB/working-with-contracts/contract-deferrals-per-contract-line.md new file mode 100644 index 000000000..d6fac8b50 --- /dev/null +++ b/business-central/SRB/working-with-contracts/contract-deferrals-per-contract-line.md @@ -0,0 +1,90 @@ +--- +title: Deferrals per contract line +description: Control deferral creation per contract line +author: TobiSIT +ms.author: bholtorf +ms.reviewer: bholtorf +ms.topic: concept-article +ms.search.keywords: +ms.search.form: 8067_Primary, +ms.date: 12/05/2025 +ms.service: dynamics-365-business-central +ms.custom: bap-template +--- + +# Control Deferral Creation per Contract Line + +Enable precise compliance with accounting standards by specifying, for each contract line, whether deferrals should be created when posting sales invoices. This feature provides granular control over revenue recognition and supports diverse contract scenarios. + +## Overview + +With subscription billing based on contracts, organizations often need to defer revenue for some contract lines but not others. This functionality allows users to determine, per contract line, whether deferrals are created, ensuring accurate financial reporting and flexibility for various contract types. + +## Prerequisites + +- Access to the Subscription Billing module. +- Appropriate permissions to configure contracts and subscription contract setup. +- Understanding of your organization’s revenue recognition policies. + +## Key Concepts + +- **Deferral:** The process of recognizing revenue over time, rather than immediately upon invoicing. +- **Contract Line:** An individual billing line within a customer or vendor contract, each of which can have its own deferral setting. + +## How to Control Deferral Creation + +### 1. Configuration Fields + +Several fields and entities are involved in controlling deferral creation: + +| Field Location | Field Name | Options / Default | Description | +|----------------------------------------------|------------------------------|-----------------------------|----------------------------------------------------------------------------------------------| +| Subscription Contract Setup | Default Contract Deferrals | Contract-dependent, Yes, No | Sets the default for new subscription package lines. | +| Sub. Package Line Template | Contract Deferrals | As above | Inherits from setup; sets default for new package lines. | +| Subscription Package Line | Contract Deferrals | As above | Inherits from template; can be overridden. | +| Sales Subscription Line | Contract Deferrals | As above | Inherits from package line; not editable. | +| Subscription Line | Contract Deferrals | As above | Inherits from sales subscription line or package line; determines if deferral is created. | +| Subscription Contract Type | Default Create Contract Deferrals | Yes (default) | Sets default for associated contracts. | +| Customer/Vendor Subscription Contract Header | Create Contract Deferrals | Yes (default) | Sets default for new (subscription) lines in the contract. | + +> **Note:** Changes to default settings only affect new contracts or contract lines. Existing contracts/lines must be updated manually if required. + +### 2. Data Upgrade and Initialization + +When upgrading or initializing the system: + +- New fields are initialized according to their default values. +- For existing contracts and lines, deferral settings are set based on prior “Without Contract Deferrals” flags or contract assignment. +- Subscription lines with “Invoicing via Sales” are set to “No” for deferrals. +- Subscription lines with “Invoicing via Contract” inherit from the contract or setup. + +### 3. Assigning Subscription Lines + +- If a subscription line’s deferral setting is “Yes” or “No,” adding or removing it from a contract does not change its setting. +- If set to “Contract-dependent,” the setting updates based on the contract header’s value. + +### 4. Creating Deferrals + +Deferrals are always created per contract line, but only when the following conditions are met: +- The “Create Contract Deferrals” field in the contract header is set to “Yes, and + - The “Create Contract Deferrals” field in the line is set to “Contract-dependent, or +- The “Create Contract Deferrals” field in the line is set to “Yes. + +When posting a credit memo, only deferrals linked to the specific contract line are released. + +### 5. Restrictions and Error Handling + +Changing the deferral setting on a subscription line is only possible if there are no open (unreleased) deferrals for that line. If attempted, a corresponding error is displayed. + +## Best Practices + +- Set up default deferral preference in the Subscription Contract Setup to streamline contract ad subscription package creation. +- Review and adjust deferral defaults per contract type to set deferral creation in contracts more specifically. +- Review and adjust deferral settings for each subscription package as needed to ensure compliance with accounting standards. +- Regularly audit contract lines for correct deferral configuration, especially after upgrades or setup changes. + +## Related Topics + +- [Subscription Contract Setup](#) +- [Contract Deferrals](#) +- [subscription Packages](#) diff --git a/business-central/SRB/working-with-contracts/contract-deferrals.md b/business-central/SRB/working-with-contracts/contract-deferrals.md index 55b459b9a..d2ca1db66 100644 --- a/business-central/SRB/working-with-contracts/contract-deferrals.md +++ b/business-central/SRB/working-with-contracts/contract-deferrals.md @@ -92,14 +92,16 @@ Use the **Subscription Contract Deferrals Release** report to release invoice de * Runs through all customer and vendor contract deferrals, and filters using **Posting Until Date** from the report request page to the **Posting Date** and **Document Posting Date** fields * Reposts the items found from the accrual account to the cost or revenue account. -The release takes place for debit-side and credit-side contract accruals at the same time. The **Posting Date** field from the report request page is used as the posting date for the closure. At the same time, the status in **Released** field in the contract deferrals is set to **Yes**. +The release takes place for debit-side and credit-side contract deferrals at the same time. The **Posting Date** field from the report request page is used as the posting date for the closure. At the same time, the status in **Released** field in the contract deferrals is set to **Yes**. -We recommend that you run the release of contract deferrals on a monthly basis (for example, at the end of the month). +> [!TIP] +> You can set up report 8051, **Subscription Contract Deferrals Release**, as an entry in the job queue. If you do that, the work date will be used for the two fields, **Posting Date** and **Post Until Date**. + +It's recommend to you run the release of contract deferrals on a monthly basis (for example, at the end of the month). When you post the release, the source code is used. The source code is in the **Subscription Contract Deferrals Release** field in the **Source Code Setup** page. > [!NOTE] -> > * If deferrals were created by a contract invoice, they're automatically released fully on the **Posting Date of Credit Memo** when the contract invoice is credited. > * Contract deferrals shouldn't be released to future periods. > * Credit memos shouldn't post to past (supposedly closed) periods. The release and correction of the contract deferrals happen on the document date of the credit memo. This mismatch could distort the reporting and the advance VAT return already created. If the credit memo was posted in a past period, these two points, among others, must be corrected in coordination with the departments, such as internal financial accounting or your tax advisor. diff --git a/business-central/SRB/working-with-contracts/contracts-services-mgmt.md b/business-central/SRB/working-with-contracts/contracts-services-mgmt.md index 290536eb0..3ff4bbe13 100644 --- a/business-central/SRB/working-with-contracts/contracts-services-mgmt.md +++ b/business-central/SRB/working-with-contracts/contracts-services-mgmt.md @@ -31,7 +31,7 @@ The following table explains key fields on the **Lines** FastTab of the **Custom |**Next Billing Date**|Specifies the due date of the next billing. The date is automatically recalculated during the billing proposal. The field isn't available if the line is invoiced to the subscription line end date.| |**Calculation Base Amount**|Specifies the basis of valuation of the subscription line. When you sell an item in subscription lines, the **Calculation Base Amount** field shows the value of the item.| |**Calculation Base %**|Specifies the percentage of the value in the **Calculation Base Amount** field to use to price the subscription line.| -|**Price**| Calculates the price from the **Calculation Base Amount** and the **Calculation Base %**. It's always valid for the entire calculation base amount. For example, it's an annual price if a year is entered in the **Billing Base Period** field and a monthly price if a month is entered. | +|**Price**| Calculates the price from the **Calculation Base Amount** and the **Calculation Base %**. It's always valid for the entire calculation base amount. For example, it's an annual price if a year is entered in the **Billing Base Period** field and a monthly price if a month is entered.| |**Discount %**|Specifies the percentage discount for the subscription line.| |**Discount Amount**| Specifies the discount applied to the subscription line.| |**Amount**|Shows the result of the price, discount, and quantity of the subscription line.| @@ -44,7 +44,7 @@ The following table explains key fields on the **Lines** FastTab of the **Custom The following table explains key fields on other pages related to subscription lines, such as the **Planned Subscription Lines** and **Sales Subscription Lines** pages. -|Field |Description | +|Field|Description | |---------|---------| |**Partner**|Specifies whether the subscription lines are meant for in accounts receivable or accounts payable. Accordingly, subscription lines can be added to customer or vendor subscription contracts and invoiced.| |**Subscription Contract No.**|Specifies the contract through which the subscription lines bill.| diff --git a/business-central/SRB/working-with-contracts/period-calculation.md b/business-central/SRB/working-with-contracts/period-calculation.md index 9ceac9ef4..af1a20c1f 100644 --- a/business-central/SRB/working-with-contracts/period-calculation.md +++ b/business-central/SRB/working-with-contracts/period-calculation.md @@ -22,6 +22,10 @@ To accommodate this, there is a choice to calculate periods using the [!INCLUDE For all recurring billing, we generally recommend the *Align to End of Month* option. You can set the option as the default. To learn more, go to [Subscription contract setup](../setup/general.md#subscription-contract-setup). +The start date of the calculation can be decisive for calculating daily prices. If this is within the last three days of a calendar month, the following difference occurs: +* With *Align to End of Month* option, the number of days in the month of the end date is used to determine the daily price. +* With *Align to Start of Month* option, the number of days in the month of the start date is used to determine the daily price. + ## Align to Start of Month The calculation of a month with the option **Align to Start of Month** as the **Period Calculation** in the contract line uses the [!INCLUDE [prod_short](../../includes/prod_short.md)] standard date calculation. @@ -40,7 +44,7 @@ When calculating a whole month, the start date *plus* one month *minus* one day ### Price calculation -The [billing rhythm](../masterdata/service-commitments.md#overview-of-subscription-package-and-subscription-package-line-fields) isn't taken into account when calculating the price. The billing rhythm determines the cycle in which a contract line is invoiced (billing period) if no manual intervention is made. The price of a **Billing line** is calculated on the basis of **Price** and **Billing Base Period** in the service commitment or contract line and the **Billed Base Period**. If the invoiced period is a multiple of the **Billing Base Period**, the price is multiplied accordingly. +The [billing rhythm](../masterdata/service-commitments.md#overview-of-subscription-package-and-subscription-package-line-fields) isn't taken into account when calculating the price. The billing rhythm determines the cycle in which a contract line is invoiced (billing period) if no manual intervention is made. The price of a **Billing line** is calculated on the basis of **Price** and **Billing Base Period** in the subscription line or contract line and the actually *invoiced period*. If the invoiced period is a multiple of the **Billing Base Period**, the price is multiplied accordingly. *Monthly price = 100,- (Price = 100,- Calculation Base Period = 1M)* @@ -78,7 +82,7 @@ The price for the entire period invoiced corresponds to the sum of the partial p ## Align to End of Month -If the **Service Start Date** and the **Next Billing Date** are within the last three days of a month, the period is determined from the end of the month. A contract line that's invoiced from the last day of a month for one month is invoiced up to the second to last day of the following month. This calculation happens regardless of how long the respective months are. This type of period calculation guarantees that the 13th monthly invoice starts on the same day (one year later). Apart from that, this type of period calculation works in the same way as *Align to Start of Month*. For example, the **Next Billing Date** determines the first day of the next billing. +If the **Subscription Line Start Date** and the **Next Billing Date** are within the last three days of a month, the period is determined from the end of the month. A contract line that's invoiced from the last day of a month for one month is invoiced up to the second to last day of the following month. This calculation happens regardless of how long the respective months are. This type of period calculation guarantees that the 13th monthly invoice starts on the same day (one year later). Apart from that, this type of period calculation works in the same way as *Align to Start of Month*. For example, the **Next Billing Date** determines the first day of the next billing. *Monthly price = 100,- (Price = 100,- Billing Base Period = 1M)* @@ -120,9 +124,9 @@ Price \ of \ the \ Billing \ lines = \sum\limits_1^n \frac{Price \ of \ Contract ### Leap year -The period calculation works almost the same in leap years as in normal years. The only difference is that 02.29 is the last day in February. +The period calculation works almost the same in leap years as in normal years. The only difference is that 02/29 is the last day in February. -02.29.2024 - 03.30.2024 corresponds to one month. 02.29.2024 is the last day of February and 03.30.2024 is the second to last day of March. +02/29/2024 - 03/30/2024 corresponds to one month. 02/29/2024 is the last day of February and 03/30/2024 is the second to last day of March. ## Related information diff --git a/business-central/SRB/working-with-contracts/price-update.md b/business-central/SRB/working-with-contracts/price-update.md index 5d9325619..eaac02673 100644 --- a/business-central/SRB/working-with-contracts/price-update.md +++ b/business-central/SRB/working-with-contracts/price-update.md @@ -147,7 +147,7 @@ If the price update can't apply immediately, planned subscription lines are crea * There are billing lines for a contract line. The price update never intervenes in the current invoice run. -* An umposted invoice or credit memo exists. +* An unposted invoice or credit memo exists. The price update doesn't change any documents. * **Next Billing Date** is before **Next Price Update**. diff --git a/business-central/SRB/working-with-contracts/service-commitment-cancellation.md b/business-central/SRB/working-with-contracts/service-commitment-cancellation.md index 89b7b0a99..df1e7deea 100644 --- a/business-central/SRB/working-with-contracts/service-commitment-cancellation.md +++ b/business-central/SRB/working-with-contracts/service-commitment-cancellation.md @@ -20,7 +20,7 @@ All subscription contract lines have information about their validity and termin Use the **Subscription Line End Date** field to specify a date on which you stop billing a subscription line. The end date doesn't depend on the dates in the **Cancellation Possible Until** and **Term Until** fields. -If there isn't an agreement with the supplier or customer, the field is blank. If the **Subscription Line End Date** is one day prior to the **Next Billing Date**, the contract line is considered terminated. +If there isn't an agreement with the supplier or customer, the field is blank. If the **Subscription Line End Date** is one day prior to the **Next Billing Date**, the contract line is considered terminated. When you run the **Update Subscription Line Dates** action, the contract line is marked as closed on the customer subscription contract. To learn more, go to [Customer subscription contracts](customer-contracts.md#customer-subscription-contracts). > [!NOTE] > If a contract line was billed by mistake because the **Subscription Line End Date** was incorrect, you can't just terminate it retroactively. The contract line would be considered billed for a period after the **Subscription Line End Date**. Therefore, you must first issue a credit memo. To learn more about credit memos, go to [Credit memos](../sales/credit-memo-cancellation.md). The credit memo resets the **Next Billing Date**, and you can terminate the contract line. This ensures that the process of crediting and ending the contract line is followed. diff --git a/business-central/SRB/working-with-contracts/so-service-commitments.md b/business-central/SRB/working-with-contracts/so-service-commitments.md index 6883a0a00..6d8d0cd14 100644 --- a/business-central/SRB/working-with-contracts/so-service-commitments.md +++ b/business-central/SRB/working-with-contracts/so-service-commitments.md @@ -1,6 +1,6 @@ --- -title: Planned subscription lines in subscriptions -description: You can use planned subscription lines with subscriptions in subscription billing. +title: Subscriptions and subscription lines +description: Subscription lines describe the details of a subscription. author: brentholtorf ms.author: bholtorf ms.reviewer: bholtorf @@ -12,16 +12,15 @@ ms.service: dynamics-365-business-central ms.custom: bap-template --- -# Planned subscription lines in subscriptions +# Subscriptions and subscription lines -On the **Planned Subscription Lines** page, subscription lines describe the monetary content of agreements with customers and suppliers as well as termination dates. In order for a subscription line to be billed recurrently, it must be assigned to a contract. +On the **Subscription** card, subscription lines describe the monetary content of agreements with customers and suppliers as well as termination dates. In order for a subscription line to be billed recurrently, it must be assigned to a contract. A subscription line is valid if the **Invoicing via** field is set to **Contract** and the **Subscription Line End Date** field is either blank or the date in the **Next Billing Date** field hasn't reached the date in the **Subscription Line End Date**. Subscription lines with invoicing via Sales are used to store information and aren't billed on a recurring basis. If a subscription line is assigned to a contract, almost all changes can be made in the contract. For example, an exception is that you can't change the quantity on subscription lines. > [!NOTE] -> > * If the **Next Billing Date** reaches the **Subscription Line End Date**, it isn't available. These subscription lines are considered ended and can no longer be billed. > * An example of a subscription line that should not be billed recurrently but store information about the sale is a warranty extension that's billed one time through the sales order. The information about how long the extension is valid is stored in the subscription lines.