Stepping into a business world brings us to the experience of many different challenges.
Speaking of which, the most important factor to manage is finance and operations. New or old business owners, automation is now a vital part of every process.
Dynamics 365 is affecting every department of various companies. Besides that, the important department in any organisation is finance and operations. And it further leads us to revenue and profit. In times of automation, we all understand that system efficiency is dependent on technology. So, Dynamics 365 Finance and operations are doing the same by offering the module of revenue recognition.
How do Revenue Recognition works?
Dynamics 365 offers you revenue recognition. If you are in the business for years, you would be familiar with it. However, this one tool is adding up the ease of people and just remember, revenue is different from the profit. Revenue is the earning a company draws from services or goods. Though, profit is the expense that remains after paying all the other expenses i.e. bills and taxes, etc.
So, here comes the revenue recognition with its tremendous features. Let’s see how the process works and why it is essential for your company.
This module will help you in performing two main tasks:
· Revenue Allocation:
It helps is recognizing the exact value of revenue based on the multi-element order and other components.
· Defer Revenue:
It is based on the schedule of revenue according to the time frame of contracts and percentages for revenue recognition over time.
Features of the Revenue Recognition in Dynamics 365
The revenue recognition module includes support for all kinds of services for software and hardware. Moreover, it will handle features like:
Users can include different prices and it will be the one different from already charged.
It determines the time frame for revenue deferral.
·Multiple Sales order reallocation
Users can manage multiple sales order reallocation with efficiency.
·Workspace navigation and reporting
It is to keep track of all reports and schedules for revenue deferral.
Revenue recognition is compressing the 5-step model for revenue recognition into a module. And assisting organisations even better. So, plan, determine the time frame of the contract and create products accordingly. Furthermore, for more details and assistance regarding Dynamics 365 and revenue recognition, you have a DFSM team for help. Engage with our professionals to get the best results from the module.