Alternative Revenue Recognition

Subscription Services

Service subscription capabilities Service subscriptions with clearly defined

subscription periods

Indexation adjustment of subscription prices

Accrual mechanism for distributing revenue recognition

Relation to service agreements can be established through projects

Distributing income with accruals

3

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

2000

4000

6000

8000

10000

12000

14000

Subscription Services

Subscription feeAccrualsIncurred cost

Subscription period

$

Managing service subscriptions

A service subscription is established to manage the recurring revenue stream

Fee transactions are created in accordance with the agreed-upon invoice frequency

Posting and invoicing of fee transactions

Accruals can be done for a single accrual period or a longer accounting period (e.g., monthly/quarterly)

A service subscription can cover the work included in a service agreement (e.g., repetitive maintenance) if the two entities are associated with the same project 4

© 2011 Microsoft Corporation. All rights reserved. Microsoft, Microsoft Dynamics, and the Microsoft Dynamics logo are trademarks of the Microsoft group of companies. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this

presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft

cannot guarantee the accuracy of any information provided after the date of this presentation.

MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

CCAX2012BV071