Fixed Subscription Term
In software retail business, it is common to purchase a license from the manufacturer as a full version (initial sale). Subsequent renewals and extensions (e.g. for updates) are sold afterwards. Such contracts usually have a fixed term, e.g. one year, and are not automatically renewed. The retailer or customer is responsible for monitoring this, not the software manufacturer. However, the renewal must be initiated. The Fixed Subscription Term is used to map such contractually defined terms.
The Subscription Option field on the Item Card (in the Prices and Sales fast tab) provides, among others, the option Fixed Subscription Term. An item marked liked this requires a start and end date of the Subscription Line to be specified when used or processed.
Subscription Lines with a fixed term are valid for a certain period. They end automatically at the agreed date.
Subscription Lines with a fixed term
The Subscription Package used for a fixed term are set up in the same way as normal Subscription Packages. However, the Fixed Subscription Term indicator must also be set in the Subscription Package.
Only one Subscription Package can be defined for use for fixed terms.
Use of items with Fixed Subscription Term
If an item with Fixed Subscription Term indicator set is used in a Sales line, the Subscription Package with the Fixed Subscription Term indicator is automatically applied.
The item cannot be shipped unless the Term Start Date and Term End Date fields have been filled in the Sales line. The dates are then interpreted as Subscription Line Start Date and Subscription Line End Date when the Subscription Lines are generated.
As these are usually retail items, Purchase Orders can be used to procure them from the supplier or manufacturer. Before the Purchase Order is posted (items receipt), the system requires the Term Start Date and Term End Date to be specified (in the Purchase Order line). With the posting of the shipment, the dates is transferred to the related Sales line.
Once the Sales Order with a Fixed Subscription Term item is shipped, a new Subscription is created.
This procedure is compatible with both Warehouse Shipments and simple, order-related Purchase Orders. In addition, Drop Shipments (Business Central Standard - without Warehouse Shipments and DYCE - with Warehouse Shipments) are also supported.