Bundling and Sales Order Processing: Revenue Recognition in Microsoft Dynamics 365 Finance, Part 5

In Part 4 of the Revenue recognition series, we reviewed Revenue price and Sales Order Processing.  In this article, we are going to review bundle functionality: what a bundle is, how to set one up, and how to use it as part of Sales order processing. We will run through a very simple example to illustrate the functionality within the system.

Bundle

Bundle items are the products that include two or more components. The setup for the bundle is the same as a bill of materials. BOMs have been used in the production module for a long time to group BOM components including versions, approval, and activation. Microsoft made the right decision to use this existing functionality for bundles rather than creating a new design all together.

In this article, we are using the bundle listed below to demonstrate the functionality:

1. MG36201YR – is the parent item or Bundle item. It has following components:
1. MG3620 – Canon Printer
2. CAN1Yr – Cannon Printer 1 Year Service.

The components of the bundle can be regular item or service item. If the component is a Service item, in order to include the item as a component the model group for the service, the item must have the parameter “Stocked product” set to yes.

Here is how BOM item MG36201YR setup looks:

In order to flag the released product as a Bundle item, a new check box has been added on the released products form, and we need to set the check box to Yes.

Sales order creation and processing for Bundle item