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[Gabor Fulop]

Hello,

 

What have people used for Revenue recognition with Microsoft Dynamics AX 2012.  We are on R2 CU7 and considering upgrade paths.

 

We have Sales Orders with physical and non-physical products and services.  We also have Project invoices with fees, items, T&M, etc.  We have a mix of hardware and software with support service subscriptions.  Because of discounting we also have revenue reallocation requirements too.  Our orders have a very long lifecycle, sometimes > 2 years and may need to invoice multiple times through their lifecycle. 

 

Many thanks for sharing how you have seen these complex requirements solved elsewhere.

Best regards,
Gabor

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Gabor Fulop
Airbus DS Communications
Temecula CA
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[Girish V. Nair]

Hi Gabor Fulop,

Revenue recognition can be at the below cases:

 1. Time and Material

Here, Fees/ Items(Service/Products)/Hours/Expenses can all be invoiced. Whatever is invoiced is recognized as revenue. Also, if the Revenue recognition cycle and the Invoicing cycle is different, then certain GAAPs advise to Accrue revenue and reverse the accruals and recognize revenue upon actual invoicing. 

 2. Fixed Price

For fixed price projects the revenue is recognized as a percentage of work completion. The completion can be based on Units (number of hours budgeted vs actual hours) or it can be based on value (Contract value vs Actual cost value incurred). The percentage arrived is applied on the Total Contract value (Total of Billing Milestone values).
For AMC projects the revenue is recognized as a percentage of total days of contract vs total days elapsed since contract inception.

Both these scenarios are configurable in base AX..

Regards

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Girish
Senior Advisory Consultant
Tectura India
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