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

January 20 2020

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:

Microsoft Dynamics 365 Finance Bundling and Sales Order Processing

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.

Microsoft Dynamics 365 Finance Bundling and Sales Order Processing

Sales order creation and processing for Bundle item

About Satish Panwar

Satish works as a Senior Architect at Hitachi Solutions America and has more than 14 years of experience implementing different versions of Microsoft Dynamics AX. He holds numerous certifications and hold bachelor’s degree in Information technology.

More about Satish Panwar

Comments

Lewis-H's picture

Thanks for this information it is quite helpful. I would like to know more about MS Dynamics 365. I referred this link below and it has helped me a lot to learn about MS Dynamics 365.
https://www.o365cloudexperts.com/microsoft-dynamics-365/
I hope this helps you as well.
Regards,
Lewis


satish.panwar's picture

Hi Lewis,
Please take a look at official documentation from Microsoft at link https://docs.microsoft.com/en-us/dynamics365/ It details all the products under Microsoft Dynamics 365.


Mosesy's picture

Great job this series!
Some questions pls:
1) In picking process, what are rules whether the regular or the service item?
2) For customs, it is needed to show the components related to the bundle item, are these showable?
3) In intercompany chain, how does it work?
Thank you in advance.
Regards,


satish.panwar's picture

Thank you for kind words. It help build the motivation. Please know that the Bundling functionality is activated if you are using Revenue recognition module. From a picking perspective, both item type (Service + Item ) will get displayed on the picking list. You need to find out which document you want to use for Customs and then identify if it would work. If not, then options are either to use a different document or extend the solution. I ran through a picking test and packing slip, they both show the components and not the Bundle item. The confirmation and Invoice (customer facing document) shows only the Bundle item. I haven't ran any intercompany scenarios with the Bundling yet, something that you may have to try if you plan on using them.