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Support and Renewal Process

Modules > Accounts receivable > Orders > All sales orders > [create a sales order] > [Invoice tab] > [select Add support and renewal]

Use this page to enter detailed information about the support or renewal item for the sales transaction. This information is used to calculate the charge amount for the original support contract and/or the renewal amount for creating a billing schedule.

You can enter the support or renewal contract information, or both. When you enter the support contract information, only the support item is added to the sales document. When you enter the renewal contract information, the renewal item is used to create a billing schedule.

When a customer allows a support contract to lapse, you are asked if you want to make the billing schedule active again.

When you want to make a sale that includes the first year of support only, without an automatic renewal of the support contract, clear the Create/Update Renewal option so that when you post the sales transaction, a recurring billing schedule is not created.

Note icon. Note: The support and renewal is available for only the sales order and has no other association with the existing billing schedule.

Aligning Invoice Dates

The alignment date for an invoice can vary based on the settings used for Override start date and with the item group feature.

The alignment functionality is designed to only work with billing schedules that have the Align to Month option set to No. This option is on the Billing Schedules page.

Override Start Date

The Override start date setting can affect how the Alignment date and Renewal end date work.

Override start date = Yes

When the Alignment date is changed, the Renewal end date is updated to match it. However, you can change the Renewal end date if needed.

Override start date = No

The Renewal end date is automatically updated to be the same as the Alignment date at the time the sales invoice is created. If the Renewal end date is earlier than the Renewal start date, both the Renewal end date and Alignment date are updated to a date later than the Renewal start date.

All support and renewal start and end dates are read-only.

Item Grouping and Alignment Date

Review the following information to understand how the Alignment date is updated when item grouping is used.

On the Advanced Recurring Contract Billing Parameters page, Align by item group is set to Yes.

If the billing schedule contains any items in the item group, the Alignment date is automatically updated as follows:

The Alignment date is updated with the first unbilled end date from the billing detail. This date must be later than the renewal start date.
If an unbilled end date does not exist, then the last end date with years added to it so it is after the renewal end date is used as the Alignment date.
For scheduled partial payments, the renewal end date and alignment date are the same and depends on whether a support item exists.
- If a support item exists, the renewal start date is calculated as the day after the support end date.
- If no support item exists, the renewal start date is calculated from the renewal end date and the frequency (Annually, Monthly, etc.) of the billing schedule.

When sales order is posted, the alignment date for the billing schedule is updated for any renewal items.

For more information on the alignment date, review Alignment by Item Group: Examples and Alignment Date: Examples.

Add Support/Renewal Items

To add support or renewal items to a billing schedule, follow these steps:

Follow the steps within the Microsoft Dynamics 365 for Finance and Operations documentation to create a sales order.
In the Sales order lines, add an item, and complete all necessary information.
In the header of the sales order, select the Invoice tab, and then select Support and renewal > Add support and renewal, which opens the Support and Renewal Process page.
On the Support and Renewal Process page, select the Support and renewal quantity, the Support and renewal level, and the End user account.
In Support contract, specify whether you want to override the start date for the support contract. Also, specify the support billing frequency and interval and the start and end dates.
In Renewal contract, specify the renewal billing frequency and interval and the start and end dates. Also, select the billing schedule number and the date to align the sales line items.
Select an Billing schedule number or leave it empty to create a billing schedule.
In the Sales lines, update the support and renewal information for each line as needed.
When you select a line, you can also review the Line details.
If needed, change the Alignment date.
The Renewal end date is automatically updated to reflect the change.
Select OK.
Back on the Sales Order page, generate the invoice for the sales order.

Header Fields

The header contains the following fields:

Field	Description
Support and renewal quantity	Select one of the following options: 1: Adds one support item at the transaction level for the sales order. Invoice Qty: The quantity of the support item and the renewal item is the same as the original line item. The unit price and extended price are calculated accordingly.
Support and renewal level	Select the support level for the renewal or support item.
End user account	Select the end user account.
End user name	Displays the end user name.
Support contract
Billing frequency	Select the contract frequency. The frequency is used to calculate the pro-rated support and renewal amounts for the support and renewal sales line items.
Override start date	Select whether to override the default support and renewal start dates for the item: Yes: Uses the Support start date and Renewal start date that you specify for the support and renewal start dates. No: Automatically sets the support and renewal start and end dates based on the setting of the Default support start date option on the Advanced Recurring Contract Billing Parameters page. Default.
Support start date	Indicates the date on which the support contract starts. When Override start date is Yes, this date can be changed.
Support end date	Displays the calculated end date for the original support contract. When Override start date is Yes, this date can be changed.
Billing interval	Specify the number of intervals for the support or renewal contract.
Include discount	Select whether a discount is included for the support item.
Renewal contract
Billing frequency	Select the contract frequency. The frequency is used to calculate the pro-rated support and renewal amounts for the support and renewal sales line items.
Renewal start date	Displays the calculated renewal start date based on the support contract start and end dates and the frequency specified. This date cannot be later than the renewal end date. When Override start date is Yes, this date can be changed.
Renewal end date	Displays the calculated renewal end date based on the renewal start date and the billing frequency. This date cannot be earlier than the renewal start date. When Override start date is Yes, this date can be changed.
Billing interval	Specify the number of intervals for the support or renewal contract.
Include discount	Select whether a discount is included for the renewal item.
Billing schedule number	Select an active schedule ID to add the renewal item entered into an existing schedule. When you select a schedule that is NOT active, for example, when a customer has allowed a support contract to lapse, you are asked if you want to change the status of the schedule from disabled to active. When select to change the status of the schedule to active, the current status of the line items that are already in the schedule are retained and new schedule lines are added as active lines. When you select not to change the status, the status of the schedule remains disabled, and you can select an active schedule or create a new schedule instead.
Alignment date	Select the date on which you want the renewal sales line items to align. This date must be later than the renewal start date.

Sales Lines

The sales lines show the details items that use the support and renewal process for the sales order.

Field	Description
Item number	Select an item number.
Variant number	Displays the variant number for the item. The default value is from the Sales Order.
Net amount before discount	Displays the amount of an item before the discount is applied.
Net amount	Displays the amount of an item after the discount is applied.
Support level	Select a support level.
Support	Select whether to apply a support contract to the line.
Support item	Select a support item number.
Support item variant	Displays the variant number for the support item. The default value is from the Item Setup, but can be changed as needed. The variant is required if the item is set up to have variants in standard Microsoft Dynamics 365 for Finance and Operations.
Percentage	Specify the support percentage used when calculating the unit price for a support item in a billing schedule. Based on this percentage, the amount charged for the original support item is calculated using the formula: Net amount price of the item x percentage The calculated amount is then pro-rated based on the original start date and end date and the billing schedule frequency.
Support amount	Displays the support amount.
Renewal	Select whether to apply a renewal contract to the line. As part of the renewal process and when this check box is selected and the corresponding sales invoice is posted, the item serial number is copied to the to the billing schedule line that is created for this item.
Renewal item	Select a renewal item number.
Renewal item variant	Displays the variant number for the renewal item. If needed, you can change the value. The default value is from the Item Setup, but can be changed as needed. The variant is required if the item is set up to have variants in standard Microsoft Dynamics 365 for Finance and Operations.
Percentage	Specify the renewal percentage used when calculating the unit price for a renewal item in a billing schedule. Based on this percentage, the amount charged for the renewal item is calculated using the formula: Net amount of the item x percentage The calculated amount is then pro-rated based on the start and end dates of the renewal item and the renewal contract frequency.
Renewal amount	Displays the renewal amount.
Billing schedule number	Displays the billing schedule number for the line. For information on how the billing schedule number is updated, review Support and Renewal Process .

Line Details

The line details shows the details for the selected sales line from the Sales Lines FastTab.

Field	Description
Support contract	Displays the support start and end dates for the item.
Renewal contract	Displays the renewal start and end dates for the item.
Billing schedule number	Displays the billing schedule number for the item. The default value is from the header.
Alignment date	Displays the alignment date for the item. This date must be later than the Renewal start date.
Item group	Displays the item group for the item.