Sales Order

Different Bill-to Addresses

Sales orders for billing schedule lines that use different bill-to addresses are processed as follows:

• If all lines have the same bill-to address, one sales order with all the lines is created.
• If the bill-to address is different for some lines, a sales order is created for each bill-to address with all corresponding lines on the correct sales order.

Consider the following examples, one billing schedule has three billing schedule lines: 

• All lines use the same delivery and bill-to address: One sales order with three lines is created.
• All lines use the same bill-to address, but have three different delivery addresses: One sales order with three lines is created.
• All lines use three different bill-to addresses and deliver address: Three different sales orders with one line each are created.
• Two lines use the same bill-to address, but different delivery addresses: Two different sales orders are created: one sales order has two lines, the other sales order has one line.

The bill-to address appears on the generated pro forma invoice and the sales invoice report.

Adding Deferral Items

When you enter a line for a sales order, the deferral check box is automatically set for the item or sales category selected based on the deferral setup on the Deferral Defaults and the Deferrable Items pages.

You can manually change the deferral options for each line.

For stock items, two deferral schedules are created per line:

• One deferral schedule is for the revenue amount with a credit balance
• One deferral schedule is for the consumption expense amount with a debit balance

For service items, only a single deferral schedule is created for the revenue.

For a full description and more information on this page, see the Microsoft Dynamics 365 for Finance and Operations documentation .

Partial invoicing

A deferral schedule is created for each invoice based on the amount on the invoice. The deferral options (such as, accounts and dates) can be changed for each invoice.

Discounts

The amount on the deferral schedule includes any discounts (net amount). For deferred lines, the discount amount goes to the deferral account.

Billing Schedules and Sales Orders

Support and Renewal

When the invoice for a sales order is created, the support contract and renewal dates are based on the following settings: 

• On the Support and Renewal Process page, the Override start date setting determines the support contract and renewal start dates:
  • If Override start date is Yes, the support contract and renewal start dates are based on the Support start date specified.
  • If Override start date is No, the support contract and renewal start dates are based on the Default support start date setting on the Advanced Recurring Contract Billing Parameters page.

Revenue splitting can be automatically applied to items that are added or imported based on the Automatically create revenue split setting on the Multiple Element Revenue Allocation Parameters page for Multiple Element Revenue Allocation.

When adding a line that uses the single multiple element arrangement (MEA) type, the item is automatically set as part of the bundle, and the standalone selling price used is based on the default settings.

Note: When the data comes from an Advanced Recurring Contract Billing billing schedule, this page is read‑only.

For a full description and more information on this page, see the Microsoft Dynamics 365 for Finance and Operations documentation .

For more information, see Revenue Allocation.

Notes

When you add an item that is a part of a revenue split, keep the following information in mind: 

• When the item you add is a parent in a revenue split template, the sales order list is automatically updated with the child items.
• You can add or remove child items.
• The quantity, unit, site, and warehouse values for child items are based on the parent item.
  You cannot change these values for the child items. Any changes must be made for the parent item.
• The sum of the net amount of the child items is equal to the Parent amount.
  When the allocation method is Zero amounts, both the sum of the child items and the Parent amount are zero (0).
• If the SSP origin of the child item is the percent of parent standard or invoice price, the unit price shows a zero amount. However, the net amount shows the calculated value. If you change the unit price, the net amount is recalculated.
• If the MEA type for the sales order is single, the corresponding MERA transaction line is created when the parent and child lines are added.
• For a revenue split that has the Allocation method set to Variable amount:
  • The net amount of the parent item appears in the Parent amount column.
    This value can be edited. However, the unit price, net amount, and discount cannot be edited and show a zero (0) amount.
  • The unit price for child items shows a zero (0) value.
    You can edit the unit price or net amount, but cannot edit the discount.
  • If the invoice for the sales order has not been created, you can add or remove child items.
• For a revenue split that has the Allocation method set to Percentage:
  • The net amount of the parent item appears in the Parent amount column.
    This value can be edited. However, the unit price, net amount, and discount cannot be edited and show a zero (0) amount.
  • The net amount for child items is calculated as follows: Percentage * Parent amount.
• For a revenue split that has the Allocation method set to Equal amount:
  • The net amount of the parent item appears in the Parent amount column.
    This value can be edited. However, the unit price, net amount, and discount cannot be edited and show a zero (0) amount.
  • The net amount of the child items is calculated by dividing the Parent amount equally among all child items.
  • When child items are removed or added, the net amount and unit prices are recalculated so that all child lines have equal amounts.
  • If the Parent amount cannot be divided perfectly equal, the net amount and unit price of the last child item may be slighter more or less than the other child items.
• For a revenue split that has the Allocation method set to Zero amount:
  • The unit price, net amount, and discount can be edited.
    The Parent amount cannot be edited and show a zero (0) amount.
  • The quantity, unit, site, and warehouse values for child items are based on the parent item.
    You cannot change these values for the child items. Any changes must be made for the parent item.
  • The unit price and net price for the child items cannot be edited and show a zero (0) amount.

Posting

When an invoice is posted, the transaction currency amount posted to the revenue account for each MEA line is the calculated revenue amount shown on the Revenue Allocation page. Only the amount in General Ledger is affected, and not the amount on the invoice sent to the customer.

Any line discount shows the net amount with the revenue account and nothing is posted to the line discount account. If the MEA type is single, the total discount for the sales order is allocated to the MEA.

Any other accounts (Consumption, Taxes, etc.) are not affected.

Note: If you create multiple invoices per sales order, the MERA calculation for each invoice is done independently.

Revenue Split Example

A Hardware item is sells for 125,000 as a package and contains the following components: 

The revenue split template is set up as follows: 

• Parent item: Hardware
• Line items: 
  • Hardware
  • Installation
  • Labor warranty (1-year)
  • Parts warranty (5-year)

When the sales order is created, you can add the Hardware item and specify 125,000 for the unit price. TheSales Order list is updated as follows: 

The Hardware price is automatically calculated as follows: 125,000 - (10,000 + 5,000 + 20,000).

Specify a Revenue Split

To specify the revenue allocation for a sales order, follow these steps: 

1. Use the Microsoft Dynamics 365 for Finance and Operations instructions to add a sales order.
2. For the item that is added, select the Revenue split check box.

The item for which the Revenue split check box is selected, is the parent item. The items directly below the parent are the child items, which are indicated by the Child icon column ().

3. If you want to add more child items, in the Sales order lines, select the parent item, and select Add revenue split child.
4. Select the Item number you want to add, and select OK.

The child item is added directly below the parent.

5. Select the Invoice tab, and select Revenue allocation > Revenue allocation, which opens the Revenue Allocation page.
6. Select the MEA type.
   • When MEA type is Single, select the MEA number. All lines that use revenue splitting use the same MEA number.
   • When MEA type is Multiple, select the MEA number.
     In the list, select the lines you want and select Apply to selected. You can select different MEA numbers and apply them to different lines.
7. If needed, select each line and edit any values.
   If SSP origin is Percent of parent standard price, specify the Percent.
8. Select Save.
9. Close the window to return to the Sales order page, where you can save the transaction.

You can then create the invoice at a later time, or select Generate > Invoice to create the invoice in the Posting Invoice page.

Add/Remove Item for Revenue Split

To add or remove a item for revenue splitting, follow these steps: 

1. Use the Microsoft Dynamics 365 for Finance and Operations instructions to add a sales order.
2. In the Sales order lines, add an item, and select the Revenue split check box.
   The lines are updated with the parent item and all child items.
3. To add a child item:
   1. Select the parent item, and select Add revenue split child.
   2. Select the item you want to add and select OK.
4. To remove a child item:
   1. Select the child item, and select Remove.
   2. When you are asked to confirm the action, select Yes.

Tip: Revenue splitting can be automatically applied to items that are added or imported based on the Automatically create revenue split setting on the Multiple Element Revenue Allocation Parameters page for Multiple Element Revenue Allocation.

Add a Deferrable Charge

To defer a charge, follow these steps: 

Tip: When adding a deferrable charge, keep in mind that the line item and the charge are independent, which means that the charge can be deferrable while the item on which the charge applies does not have to be deferrable.

1. Use the Microsoft Dynamics 365 for Finance and Operations documentation to add a sales order.
2. In the Sales order lines, add an item to the lines, and edit all the line values as needed.
3. For the line item, select Financials > Charges > Maintain charges.
4. On the Maintain Charges page, add a charge line and select Advanced deferrals, which opens the Sales Order Transaction Deferral page.
5. Check that the Deferral option is Yes, edit any of the values as needed, and select OK.
6. Back on the Maintain Charges page, select Save.

Tip: To keep the charge on this window for future reference, select the Keep check box for the line.

7. Finish processing the sales order transaction as described in the Microsoft Dynamics 365 for Finance and Operations documentation.

Header Fields

The Header tab contains the following fields: 

Lines Fields

The Lines tab contains the following fields: 

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Buttons

This page contains the following buttons: 

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See also

Split by Item Group: Examples

Support and Renewal Audit

Support and Renewal Levels