1. Projects
  2. Project Management
  3. Project Billing
  4. Charge-Based Project Billing
  5. Project Revenue Recognition
  6. Project Revenue Rules
  7. Creating a Purchase Charge Revenue Rule

Creating a Purchase Charge 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.

A purchase charge revenue rule enables you to bill purchases. Thanks to purchase rules, you can create forecast charges based on purchase rules. You can create actual charges based on a vendor bill.

To create a purchase charge revenue rule:

  1. Go to Lists > Relationships > Projects.

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

  3. On the Financial subtab, click Purchase Rules.

  4. Click New Purchase 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 will appear in the Service Item field.

    Note:

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

    Updates made to accounts on item records will not update previously created revenue elements.

  7. Under Purchase Rules, in the Name column, select the name of the purchase 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.

    Note:

    You can use the purchase revenue charge rule together with as charged revenue rule to create a stand-alone bill.

  9. Click Save.

After you save your purchase charge revenue rule, NetSuite creates revenue elements, arrangements, and forecast plans with the upcoming scheduled revenue recognition update. You can manually update revenue arrangements and plans to create them immediately. When you create charges for your project, NetSuite converts your forecast revenue plans to actual revenue plans. For more information, see Updating Revenue Arrangements and Updating Revenue Recognition Plans.

General Notices