Creating a Percent Complete Project Revenue Rule

Note:

This topic is about recognizing revenue directly from charge-based projects. For information about recognizing revenue for projects that are attached to line items in sales transactions, see Advanced Revenue Management (Essentials) for Projects.

You should use percent complete project revenue rules for projects with a meaningful progress and in situations where you can define the completeness of your project. Use percent complete rules for an entire project, not for defining its individual parts. If you want to use percent complete rules for more projects, create more items and apply the rules to each of them.

A percent complete project revenue rule recognizes revenue at a rate equivalent to the project’s progress. For example, you create a percent complete project revenue rule based on a charge rule with 300 dollars in charges. In January, 10% of your project is completed, so 10% of 300 is recognized. In February, your project completion progresses to 15%, so an additional 5% of 300 is recognized, which brings the total recognized revenue to 15%.

You can also use the Percent Complete Override subtab to define project revenue recognition, for more information, see Using the Percent Complete Override Subtab.

To create a percent complete revenue rule:

1. Go to Lists > Relationships > Projects.

2. Click View next to the charge-based project for which you want to create a project revenue rule.

3. On the Financial subtab, click Project Revenue Rules.

4. Click New Percent Complete Rule.

   A popup window opens.

5. Enter a name for your rule.

6. Select a service item for your revenue rule.

   Only service items with both an income account and deferred revenue account selected on the item record appear in the Service Item field.

   Note:

   The selected service item determines which accounts NetSuite uses for the revenue element.

   If you update accounts on item records after creating revenue rules, the system does not automatically update the rules.

7. Under Charge Rules, in the Name field, select the name of the charge rule you want to use for this revenue rule.

8. Click Add.

   You can add multiple charge rules of the same type to each revenue rule. You can add time-based charge rules to multiple revenue rules with differing service items.

9. On the Revenue Plan subtab, under Recognize Based On, define when you want this revenue recognized. You can define from the following:

   • Under Date Recurring, define a recurring schedule to recognize the amount generated from the selected charge rules.

   • In the Recognize field, define an amount or a percentage of the total amount. Under Date Scheduled , define a date and enter the amount or percentage. Click Add. Continue adding dates and amounts or percentages until all of the corresponding charges are scheduled to be recognized.

   • In the Recognize field, select to recognize an amount or a percentage of the total amount. Under Task Complete – Amount, define a project task and enter the amount or percentage. Click Add. Continue adding tasks and amounts or percentages until all of the corresponding charges are scheduled to be recognized.

     Note:

     Only tasks with resource assignments and planned time are available in the Task field. The planned time period is the actual revenue plan creation date. NetSuite must mark the tasks with a Complete status to generate actual revenue plans.

10. Click Save.

For more overview information about revenue rules, see Project Revenue Rules.

General Notices