Creating a Fixed Amount 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.

With fixed amount rules you can recognize fixed dates or milestones when they are reached. A fixed amount project revenue rule can recognize revenue based on a date, task, or milestone.

To create a fixed amount project 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. Under the Financial subtab, click Project Revenue Rules.

4. Click New Fixed Amount 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 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.

After you save your fixed amount project 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.

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

General Notices