About accruing subscriptions [AX 2012]

Updated: November 26, 2010

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

With service subscriptions, you manually accrue revenue in the periods following the date when you invoiced a fee transaction.

Accrual periods are created for the invoice period that you set up for the subscription fee, and the accrual periods are based on the period code of the subscription.

You can accrue and reverse accrued revenue.

If you credit invoiced subscription amounts, you can use two methods to reverse the accrual amounts:

  • You can reverse each accrued revenue transaction individually before you create the credit note proposal for the transaction. This is the manual method. (manual)

  • You can have the accrued amounts reversed on the date where the credit note is posted or on the original posting date of the accrual.

For more information, see Subscription parameters (form).

To accrue revenue, make sure that the following data requirements are met:

The WIP - subscription and the Accrued revenue - subscription accounts must be set up in the Project module.

When you post accrued revenue, the WIP - subscription account is debited with the accrual amount, and the Accrued revenue - subscription account is credited with the accrual amount.

  1. Click Project management and accounting > Setup > Posting > Ledger posting setup.

  2. Click the Revenue accounts tab, and select WIP - subscription or Accrued revenue - subscription to set up the accounts.

To be able to accrue revenue for subscriptions, the Accrue revenue check box must be selected. This is found on the Subscription groups form for the group that is attached to the subscription. Click Service management > Setup > Service subscriptions > Subscription groups.

  1. Click Service management > Setup > Service subscriptions > Subscription groups.

You must set up an invoicing period code. Unless you want to accrue revenue in the same time intervals as you use for invoicing, you must also set up an accrual period.

The following table provides an overview of which accrual periods can be set up for each invoicing period:

Invoicing period

Accrual period

Years

  • Years

  • Quarter

  • Month

  • Day

Quarter

  • Quarter

  • Month

  • Day

Month

  • Month

  • Day

Week

  • Day

Day

  • Day

For more information about how to create a new period type, see Generate timesheet periods.

Setting up the invoicing period is a mandatory part of the overall subscription group setup. You can decide whether to also set up an accrual period for the subscription group. If you set up an accrual period for the subscription group, this period is suggested in the Period code field. This field is found in the Accrue subscription revenue form, when you accrue subscription revenue. However, the accrual period is optional information about the subscription group.

NoteNote

Use the following path to open the Accrue subscription revenue form. Click Service management > Periodic > Service subscriptions > Accrue subscription revenue.

You can control the number of ledger transactions that are created when you post accrued revenue. On subscriptions, define if the ledger transactions should be created as a total or per line.

  1. Click Project management and accounting > Setup > Project management and accounting parameters.

  2. On the Financial tab, in the Invoice field, select Total or Line.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).

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