Project Revenue Rules

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.

Project Revenue Rules is a subtab on the Financial subtab. Project revenue rules rely on charge rules to determine the amount of revenue to be distributed. Choose a type of project revenue rule to create based on how you want the system to recognize the revenue.

Use as charged rules if you intend to recognize revenue as it is incurred, regardless of your invoicing schedule. As charged rules are particularly relevant for time and materials style projects which do not have fixed total amounts and are billed in hourly or daily rates. As charged project revenue rules recognize revenue from actual project charge dates and revenue values. Use as charged rules if you need to create an invoice for a long-term project and want to add more data for past charges.

As charged rules are not suitable or adding the data regularly, for example, on a monthly basis. You should use as charged project revenue rules for the following project billing types:

Standard Setup, Time and Materials
Fixed Bid, Progress Billing
Fixed Bid, Fixed Date
Fixed Bid, Milestone Billing

The following table shows how the different types of project revenue rules and charge rules work and interact with each other.

Project Revenue Rule	Based On	Trigger	Time-based Charge Rule	Fixed Date Charge Rule	Milestone Charge Rule	Progress Charge Rule
Percent complete	Duration-based project completeness or Percent Complete Override subtab	Duration or time	Use if there is a fixed component or cap that needs to be incorporated	Use if the duration-based percent complete represents the value or you want to use the Percent Complete Override subtab	Use if the duration-based percent complete represents the value or you want to use the Percent Complete Override subtab	Use as charged if possible
As charged	Amounts as they are charged	Charges	Use if the billed amounts represent actual revenue value	Use if the billed amounts and charge dates represent actual revenue value	Use if the billed amounts and charge dates represent actual revenue value
Fixed amount	Defined schedule	Dates or milestones	Use if you calculate amounts outside NetSuite	Use if you calculate amounts outside NetSuite	Use if you calculate amounts outside NetSuite	Use if you calculate amounts outside NetSuite

Note:

Expense-based charge rules are not available to use with Project Revenue Recognition.

Important:

Revenue is recognized during the accounting period in which the information is entered into NetSuite. Be aware that a delay in entering information may cause revenue to be recognized later than expected.

For instructions on how to create each of project revenue rules, see the following procedures:

General Notices