Sales Order

Use this page to create a sales order or sales invoice. For more information, see Invoice Sales in the Microsoft Dynamics 365 Business Central documentation.

Sales Order with Inventory

Review the following examples for creating billing schedules from sales orders.

Example 1: Sales order with inventory and service items (no deferral)

A sales order with two items is created on April 8: 

• A-052 (inventory item), quantity 5
• B-860 (service item), quantity 4

Because billing schedules can be created for service items only, the invoices for item A-052 must be created and the items shipped before the billing schedule is created. For item A-052, the following two invoices are created: 

• April 10, quantity 3 is shipped on April 15
• April 23, quantity 2 is shipped on April 31

After the invoices for A-052 are created and the items shipped, the billing schedule for B-860 can be created. The default values for the item are set up on the SBS ARCB Item Defaults. The default billing start date is May 1 since the last shipment date determines the billing start date.

Example 2: Sales order with inventory item and service deferral item

A sales order with two items is created on April 8: 

• A-052 (inventory item), quantity 5
• B-860 (service item), quantity 4

The invoices for item A-052 must be created and the items shipped before the billing schedule is created. For item A-052, the following invoice is created: 

• April 10, quantity 5 is shipped on April 15

After the invoice for A-052 are created and the items shipped, the billing schedule for B-860 can be created. The default values for the item are set up on the SBS ARCB Item Defaults. The default billing start date is May 1 since the last shipment date determines the billing start date. The deferral start date for the deferral schedule is the same as the billing start date.

Example 3: Sales order with inventory and service items (both deferral)

A sales order with two deferral items is created on April 8: 

• A-052 (inventory item), quantity 5
• B-860 (service item), quantity 4

The invoice for the inventory item A-052 is created with a corresponding deferral schedule on April 31. The standard Subscription Billing functionality is used for the deferral item.

After the invoice for item A-052 is created, the billing schedule for item B-860 can be created. When creating the billing schedule, the corresponding deferral schedule is also created. The billing start date is May 1, and the deferral start date uses the same date.

Example 4: Sales order with service items only (no deferral)

A sales order with two service items is created: 

• S-085, quantity 2
• S-096, quantity 3

The resulting billing schedule that is create contains both items.

Example 5: Sales order with service items only (with deferral)

A sales order with a service deferral item is created: 

• S-085, quantity 2

The billing schedule is created and the corresponding deferral schedule uses the same deferral start and end dates as the billing start and end dates.

Example 6: Deactivate a service

The original sales order for a service item B-860 with quantity 10 was created on April 8. The corresponding billing schedule is created with a billing frequency of monthly. Two invoices have been created on May 1 and June 1. The customer requests to change the quantity to 9.

The sales order is updated, and the updated billing schedule is created with the new quantity: 

• If the change occurs within a period that has been invoiced (e.g., May 15), a credit memo is issued for the period from the date the change is made to the start date of the next billing period.
• If the change occurs in a period that has not been invoiced, (e.g., June 3), the quantity for the billing schedule line is reduced by 1. The quantity of the next invoice reflects the change.

If the item is a deferral item, the deferral schedule is updated and future amounts are adjusted based on the reduced quantity of 1. And the next invoice will display a single line for the item B-860 with a quantity of 9.

Example 7: Multiple Deferral Schedules on Multiple Shipments

When “Create Multiple Deferral Schedule on Multiple Shipment” is turned ON from the SBS ARED Advanced Revenue & Expense Deferrals Setup Page.

In this example, a sales order is created with quantity 10 and the unit price is $1200 for a deferral item. For those quantities, if the partial shipments are done for quantity 2 then, when a Sales Order is Posted (Ship and Invoice), the posted sales invoice will be created with Qty = 2 and the deferral schedule will be also based on Qty = 2. Deferral Schedule lines will be created based on the Deferral Template used. The deferral schedule is created for the above-posted sales invoice and the total Original Revenue Amount for 2 quantities will be ( i.e., 2 *1200 = 2400). Again if the qty is shipped and invoiced , then the deferral schedule will be created for qty 5 having total Original Revenue Amount for 5 qty as $6000.

 

Create a Billing Schedule

To create a billing schedule for service items or resources from a sales order, follow these steps: 

1. Follow the instructions in the Microsoft Dynamics 365 Business Central documentation to create a transaction.
2. Select Manage > New Line.
3. To add a service item, set Type to Item, select the item number, and select SBS Options> Item Defaults. in the dialog that appears, do the following: 
   1. Turn on Recurring Item.
   2. Ensure that Interval and Number of Periods have non-zero values.
   3. If needed specify the Period to Delay (in Months).
   4. Edit any of the other settings as needed and select Close.



If the transaction contains inventory items, the invoices for the inventory items must be created and the items shipped before the billing schedule for the service items can be created.

4. To add a resource, set Type to Resource, and select SBS Options> Item Defaults. In the dialog that appears. do the following: 
   1. Turn on Recurring Item.
   2. Specify the values for Number of Period, Frequency, and Interval.
      The Item Type Option option is set to Include 1st Billing Period and cannot be changed.
   3. Edit any of the other settings as needed and select Close.
5. Back on the sales order, for the line specify the Billing Start Date and Billing End Date.
6. Select Actions > SB Functions > Create Billing Schedule.
   1. If the billing schedule does not already exist, select the billing schedule group for the new billing schedule. When the SBS ARCB Billing Schedule Card opens, complete and edit the additional fields for the billing schedule as needed.

   After you add the items and close the SBS ARCB Billing Schedule Card, the Billing Schedule Number box in the header is updated with the billing schedule number.

7. If the billing schedule already exists, the items or resources are added to the existing billing schedule. You can edit the new lines as needed.

Sales lines that have been added to a billing schedule are updated to indicate that the invoices have been created and the items are shipped (i.e., Quantity Invoiced and Quantity Shipped are updated and Quantity to Invoice and Quantity to Ship are updated with empty values).

Notes: Review the following notes for service items:

• To be able to create a billing schedule for a sales invoice that has both inventory and service items, the invoices for the inventory items must be created and the items shipped before the billing schedule can be created.
• Changes to the sales line item can be made any time before the first invoice for the corresponding billing schedule line is created.
• If the Recurring Item check box for an item is changed from selected to cleared, the following occurs:
  • The sales line is updated to indicate that the invoice has not been created nor has the item been shipped (i.e., Quantity to Invoice and Quantity to Ship are updated and Quantity Invoiced and Quantity Shipped are updated to empty values).
  • The corresponding billing schedule line must be manually deleted if the invoice for the line has already been created.

When the recurring item is a deferral item that has a revenue split template, the following occurs when the billing schedule is created and the Revenue Split check box remains cleared. On the SBS ARCB Billing Schedule Card: 

• The parent item has the Revenue Split check box automatically selected.
• The child items are automatically added to the Schedule Lines.
• All settings from the SBS ARED Transaction (Sales) are automatically applied to all child items.
  Check the SBS ARED Transaction - Billing Schedule (Advanced Deferrals) for the settings.

Delete a Sales Order

Deleting a sales order will also delete the corresponding billing schedule lines if the invoices for the billing schedule lines have not been created.

• When a sales order is deleted: 
  • The corresponding billing schedule is automatically deleted if no invoices have been created.
  • The corresponding billing schedule must be manually terminated if invoices for the lines have been created.
• When sales order line is deleted:
  • The corresponding billing schedule line is automatically deleted if the invoice has not been created.
  • The corresponding billing schedule line must be manually terminated if the invoice for the line has already been created.

Updating a Sales Order

When updating a sales order, review the following notes: 

• Updating a sales order line also updates the corresponding line for the billing schedule.
• When updating the quantity of a parent item in a revenue split, the quantity is updated for the child item. The parent amount and child line amounts remain the same. However, for the child lines, the unit price for the item is adjusted as needed to reflect the change in quantity. View example.

A sales order has the following revenue split item. The allocation template uses the equal amount allocation method.  

Item	Quantity	Unit Price	Line Amount	Revenue Split	Parent Amount
1000	1			x	260.00
1920-S	1	130.00	130.00
1925-W	1	130.00	130.00

When the quantity of the parent item is updated to 2, the quantity of the child items are also updated to 2 and the unit price is adjusted as needed based on the allocation template.

Item	Quantity	Unit Price	Line Amount	Revenue Split	Parent Amount
1000	2			x	260.00
1920-S	2	65.00	130.00
1925-W	2	65.00	130.00

 

Fields

The following field boxes are available: 

Field	Description
General
Billing Schedule No.	Displays the billing schedule number attached to the sales order. If multiple billing schedules are attached to the sales order, the value is MULTIPLE, and you can select the text to view a list of all billing schedules for each line item. Selecting a billing schedule number opens the SBS ARCB Billing Schedule Card, where you can review the details of the billing schedule. If the billing schedule is deleted, the box also becomes empty.
User Defined Fields	Only the user-defined fields that are specified on the SBS ARCB Billing Schedule Setup page appear. If you do not see the user-defined fields, select Show More in the heading of the FastTab. The user-defined fields for billing schedules are independent and unrelated to the user-defined fields for deferral schedules.
Lines
Revenue split	Indicates that a line uses revenue splitting: On: Indicates that the item uses the revenue split feature. When selected, the list is automatically updated with all child items for the revenue split template. This check box can be selected only for the parent item in a revenue split. For parent items that have a revenue split template already set up, this check box is automatically selected when it is added to a sales invoice, sales credit memo, or billing schedule. To use revenue splitting for a sales order, the check box must be manually selected. Off: Indicates that the item is a standard item that does not use revenue split.
Parent amount	Displays the new amount of the parent item. When this cell has a value, the unit price for the parent item cannot have a value.
Recurring Item	Select this check box for service items that you want to include in the billing schedule that is created from the sales order. This option can be updated from the SBS ARCB Item Defaults dialog.
Billing Start Date	Specify the billing start date for the service-only line item. This date is used for the billing start date on the corresponding billing schedule this is created.
Billing End Date	Specify the end date for the billing schedule. When this value is empty, it is automatically updated based on the number of periods specified on the SBS ARCB Item Defaults.
Alignment Date	Specify the alignment date. When a date is entered, the billing details for the line are aligned to the specified date. If the alignment date is within a billing period for which the invoice has already been created, the billing details are not updated and remain unchanged. If the alignment date is within a period that has not yet been invoiced, the billing details are updated and aligned to the date specified.
Deferral Item	Select this check box for items that are deferral items and will have a corresponding deferral schedule.
Defer COGS on Parent/Child	Select the deferrable item in a bill of materials (BOM) setup: Parent or Child. This option is available for the parent item in a BOM. View example. A BOM is set up with item 1002 as the parent with the following children:  On the SBS ARED Deferral Item Setup , the setup is as follows:  A sales order for item 1002 with the following is created:  Sales amount: 1000.00 Discount: 10% (= 100.00) COGS: 700.00 The following table shows the difference between deferring the parent or child:  Deferral Table Defer Parent/Child ARED Information Parent Since 1002 is set as deferral item, the deferral schedule is created, where:  Deferral amount: 1000.00 Deferral discount amount: 100.00 Deferral COGS amount: 700.00 Child Since 1002 is set as deferral item, the deferral schedule is created for the parent, where:  Deferral amount: 1000.00 Deferral discount amount: 100.00 Deferral COGS amount: 0.00, the COGS deferral schedule is created for the child item. If the parent amount is 0.00, the deferral schedule is not created. The child item is to be deferred, the deferral schedule for the child item 1936-S is as follows:  Deferral amount: 0.00 Deferral discount amount: 0.00 Deferral COGS amount: COGS for item 1936-S The deferral schedule for the child item 1996-S is as follows:  Deferral amount: 0.00 Deferral discount amount: 0.00 Deferral COGS amount: COGS for item 1996-S The default is from the Sales Order, which you can change as needed.
Purchase Document No.	Displays the number of the purchase document created from the sales document.

Actions

The following actions are available: 

Action	Description
Header Action - SB Functions
Create Billing Schedule	Opens a window where you select a billing schedule group. After you select a group, you can create a billing schedule from a sales document for the selected service item line. To be able to use this feature, the Recurring Item check box for the line must be selected. When the sales document is created, the header and item line information from the sales document is copied to the billing schedule. Notes: If the customer has an existing billing schedule, the item is added to the existing billing schedule. No billing schedule is created. Currently, this action can be used for service item lines only.
Append to Existing Schedule	Opens a dialog where you select an existing billing schedule. When the sales document is created, the header and item line information from the sales document is copied to the billing schedule, and the item or resource is added to the billing schedule lines.
Lines Actions - SBS Options
Item Defaults	Opens the SBS ARCB Item Defaults, where you specify the default values when the service item is added to the billing schedule.
Advanced Deferral	Opens the SBS ARED Transaction (Sales) page, where you specify the information for a deferral schedule that is created for the selected line. For billing of materials (BOM) items, a list of items (both nondeferral and deferral) appears. Select the item you want to view and select Deferral Defaults to view the deferral information for the item. Not available for lines that are Resource type.
SBS Contract Information	Opens a dialog list where you can review the billing schedule contract information for the selected line item.
Calculate Unit Price	Select one of the following actions: Calculate Unit Price: Opens the Calculate Unit Price dialog. Unit Price History: Opens the Unit Price History dialog that shows an audit trail of the changes: new contract price and frequency, old contract price and frequency, user who made the change, and the date and time of the change. These actions are available for Standard type line items with a Flat pricing method. Check the SBS ARCB Item Defaults dialog.
Lines Actions - Related Information
Deferral Schedule	Opens the deferral SBS ARED Deferral Schedules page for the selected line.

See also

Cancel or Delete Sales Documents

Item Card