3 min read

Subscription billing (part 3)

By Clara Seijo Blanque on 16 June 2023

Topics: Finance D365FO

Subscription billing is a relatively new feature in Microsoft Dynamics 365 Finance and is a separate module, which also covers the old Revenue recognition module This module is really powerful for all types of subscriptions scenarios as we explained in this overview and example, but as we were expecting and really looking for, since the version 10.0.32 the new Subscription billing module is linked to the Project management and accounting. Finally the circle is closed, fantastic!!! 😍😍

To be able to use it the first step is to activate the following feature name:

The feature includes the ability to define and manage billing schedules, record unbilled revenue based on the contractual agreement, and invoice billing schedules individually or in bulk process. Sounds great!!

This is a fantastic functionality and huge improvement because this means that is possible to create a subscription billing schedule to generate periodic sales order invoices linked to the Time and Material customer projects related to services, production or stocked scenarios.


The process for the billing schedule creation is exactly the same as the one not linked with project, the only difference is that the project needs to be created before and selected during the schedule creation.

Once the sales orders are created from the billing schedule based on the contract dates and defined criteria, the billing will be run in the project module with the creation of Project invoice proposals and the final posting of these ones including the sales orders as the same way as a manual sales order is created and invoiced.

There is only one limitation to consider, when using projects the use of the functionality Deferral revenue it's not applicable but we cannot complain, maybe it will come in the future... We always get some nice surprises from Microsoft, I'm totally in love with the one version 💙

Thanks for reading and please contact us for more info or a demo. Happy friday!




Written by Cittros team

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