Rule-Based Recognition Treatment
The Rule-Based Recognition Treatment feature adds flexibility to Advanced Revenue Management (Essentials) and Advanced Revenue Management (Revenue Allocation) features. This feature enables you to define recognition attributes for revenue elements based on specified criteria.
The Revenue Recognition/Amortization subtab on the item record contains the default values for the recognition attributes of a revenue element. With Rule-Based Recognition Treatment, you can specify different values for the following recognition attributes. Consequently, the same item can have different attribute values in different revenue elements.
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Create Revenue Plans On
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Revenue Recognition Rule
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Rev Rec Forecast Rule
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Allocation Type
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Revenue Allocation Group
For details about the recognition attributes on the item record, see Revenue Recognition/Amortization Subtab.
Rule-Based Recognition Treatment adds two records to the Setup > Accounting menu under Revenue:
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Recognition Treatment – a collection of values for recognition attributes. The Recognition Treatment permission, under Lists, controls access to this record.
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Recognition Treatment Rule – the criteria that determine whether NetSuite applies a recognition treatment. The Recognition Treatment Rule permission, under Lists, controls access to this record.
For example, you may want the values of Create Plans On and Revenue Recognition Rule for return transactions to be different from sales transactions. With this feature, you can create a recognition treatment rule that uses the Transaction Type criterion with return transaction types. The recognition treatment you associate with your rule contains the attribute values for Create Plans On and Revenue Recognition Rule to use for returns. You do not need to edit the revenue arrangement for the return transaction to change the attribute values. NetSuite automatically applies the correct recognition treatment as a result of the recognition treatment rule lookup process.
The recognition treatment rule lookup process occurs as part of the revenue arrangement creation and merge processes. You can also start the process from a revenue arrangement to apply a new recognition treatment. For details, see Running the Recognition Treatment Lookup Process Manually.
After the initial setup, recognition treatments and recognition treatment rules should change only when your accounting policies change. Documentation for the Rule-Based Recognition Treatment feature consists of two major topic areas:
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Setup for Rule-Based Recognition Treatment – contains instructions to enable the feature and manage recognition treatment records and rules, including roles and permissions
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Operation of Rule-Based Recognition Treatment – contains instructions to look up recognition treatment rules and apply recognition treatments, exclude revenue elements from recognition treatment lookup, and view recognition treatments and recognition treatment rules