This strategic move aims to provide customers with enhanced capabilities in managing subscription-based revenue and billing, ensuring seamless operations in modern finance environments.
Microsoft Dynamics 365 Finance, a leading enterprise resource planning (ERP) solution, is undergoing a significant enhancement as it deprecates the Revenue Recognition functionality and introduces Subscription Billing as an improved alternative. This strategic move aims to provide customers with enhanced capabilities in managing subscription-based revenue and billing, ensuring seamless operations in modern finance environments.
April Olson, Head of Product at Dynamics 365 Finance, expressed her confidence in the collaborative efforts with Binary Stream, stating, “Because of their alignment with Microsoft, Binary Stream makes working together feel effortless. Not only do they support Dynamics 365 Finance with innovative solutions, but their growth mindset means they empower our customers with highly scalable solutions for modern finance that can handle the complexity of XaaS billing.”
Since April 2023, Revenue Recognition functionality no longer receives support for bug fixes. Customers are encouraged to adopt the improved functionality, Subscription Billing, as the primary revenue management solution. By October 2023, the Revenue Recognition feature will be entirely discontinued, and customers will be required to transition to Subscription Billing.
Subscription Billing introduces a comprehensive set of features that enable organizations to efficiently manage subscription revenue opportunities and recurring billing through flexible billing schedules. This enhanced functionality supports complex pricing and billing models, as well as revenue allocation at the line level. Furthermore, the solution ensures compliance with International Accounting Standards IFRS 15 and ASC 606 through multi-element revenue allocation.
The improved functionality comprises three modules that can be used independently or in combination, providing customers with a tailored experience for recurring contract billing, revenue and expense deferrals, and multiple element revenue allocation.
To support customers throughout the transition, Binary Stream, a trusted partner with over 15 years of expertise, will be available to provide guidance and support to teams managing the migration process.
Lak Chahal, CEO of Binary Stream, expressed enthusiasm about empowering customers on their subscription management journey, saying, “Our expertise in subscription management and commitment to customer success ensure that organizations can maximize the value of Dynamics 365 Finance and efficiently navigate the complexities of subscription-based revenue management.”
For more information on Subscription Billing and its features, please visit the Subscription Billing Overview on Microsoft Learn or if you’d like to find out about our comprehensive migration services, you can click here.
