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Hello BC Consultants,
If this has been answered before, I apology in advance, but cant find much information online about it.
We sell Subscriptions services/ Software licenses. (Example office 365 license) we bill monthly or annually for these services and also sell Managed IT Support services.
I am wondering with to regard to items, what is best practice. Would I be right to use "Non Inventory item for the Software subscriptions as we don't need to track inventory and use service items for the Managed IT Support services as the Managed IT Support services is similar to unit of time and maybe in the future we might upgrade license to use the service contract but we also don't want to track inventory for IT Support agreements.
I have an essential BC license so wont be using service contracts which I know can be used as part of service items so not sure if their is any limitations for using service items with an essential license.
Also to note I plan to use Sales Hub integration with BC. I have tested both non inventory item and service item and both couple to products without issue in Sales Hub.
Am i best to not use service items at all and use non inventory for software subscriptions and managed IT Support. I have tested both non inventory and service items, and they both seem to work and I cant seem to see any difference.
I read one post back in 2017, where it was suggested that best practice for software subscriptions is to use inventory item but I think a non inventory item might work best as I wont be tracking inventory and seems less complicated for me to use. Also we only order software licenses when we sell licenses. so rarely have extra licenses available from our Vendor but looking for best practice advice so open to all items!
Any advice, is very much appreciated.
Kind Regards
David
When managing SaaS subscriptions and Managed IT Support services within Dynamics 365 Business Central (BC), it's crucial to choose the appropriate item types to ensure accurate accounting and operational efficiency. For software subscriptions, utilizing "Non-Inventory" items is advisable, as these do not require inventory tracking and simplify billing processes. Conversely, for Managed IT Support services, "Service" items are suitable, reflecting the nature of time-based or contractual services provided.
Implementing these practices ensures that your financial records accurately represent the services rendered, facilitating seamless integration with modules like Sales Hub. This approach aligns with best practices, promoting clarity and efficiency in managing diverse service offerings within Dynamics 365 BC.
For businesses seeking to optimize their IT operations, partnering with a reliable provider can be transformative. For instance, Sereno IT offers comprehensive outsourced IT support in London, delivering specialized expertise and proactive management to enhance business outcomes.
Suppose you're using an essential BC license. In that case, you won't be able to use service contracts as part of service items, but service items themselves should still work. Also, it's great that you're planning on using Sales Hub integration with BC, which can streamline your sales process.One thing to remember is that IT security should be considered in both your software subscriptions and managed IT support services. It's a highly demanded niche and can add value to your offerings. You may want to check out https://www.nwitservices.com for more information on IT security services.
Non inventory item or service items are the best options here. If you use G/L accounts in your sales orders you will not get any sales statistics that will be nice to have as soon as you reach some volume on your transactions.
Hi,
Pls managed al the above things by using G/L Account in Sales Order. I think this is the simple and clear method.
Regards
Amit Sharma
I think it depends on one person to another or what is the purpose of the purchase. When I was searching for it support for small businesses just like mine, I wanted to see something tangible, and for me, it was important to have that one box where I could physically see the license key. I think it's just because I wanted to ensure everything would be ok, at least from this point of view. But now, as I have a specialist in my team that cares about this, I do not even worry. For me, there is no more importance if it's tangible or only available online. So it would help if you decided for yourself while ensuring that customers will trust any of the options you offer.
Hi Marco,
Yes a lot of the software is now just electronically supplied to end user, no physical box. I am also interested to hear how other partners are managing software subscriptions with the use of items.
For a small company especially, non inventory item makes the most sense I think especially when you don't need to track stock levels on software items.
Kind Regards
David
Hello,
It depends on what you or your customer want. If I personally go to a shop and buy a license for Office 365 (subscription), I actually get a box with a sticker which shows the license and a thank you note from Microsoft. At home I activate the license and throw away the box. I keep a photo of the license key though.
In the past I worked with companies that kept the software boxes though they were empty because of possible license verification by control officers / agencies , etc. That was years ago. At that point it was actual stock though empty boxes.
I am interested as well what others would have to say. We from Microsoft only work with demo data, looking forward to hear how others setup their business.
Thanks a lot.
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