Using Summarized Revenue Recognition Journal Entries
This topic applies to the Revenue Recognition feature. Revenue Recognition is the key feature of NetSuite classic revenue recognition. Classic revenue recognition features are not available in new NetSuite implementations. Classic revenue recognition (also called legacy revenue recognition) is still supported for customers who previously enabled it. NetSuite currently offers the Advanced Revenue Management (Essentials) feature to automate revenue deferral and recognition. For equivalent information about the current feature, see Summarized Revenue Recognition Journal Entries.
You can post revenue recognition journal entries in either the detailed form or as a summary. The accounting preference Create Revenue Recognition Journals in GL determines which type of journal entry is created. For information, see Setting Revenue Recognition Accounting Preferences.
When you select the Detail option, one detailed journal entry is created for all revenue recognition schedules selected on the Create Revenue Recognition Journal Entries page. The journal entry includes separate lines for each schedule, and each line posts separately in the general ledger.
When you select the Summary option, journal entries are summarized when they are created based on the following attributes:
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Subsidiary
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Posting Period
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Accounting Book
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Account
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Class
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Department
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Location
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Custom Segment
For example, suppose you choose to create journal entries for a batch of 19 revenue recognition schedules and all of these attributes are the same for each schedule in the batch. Then one summary journal entry is created with two lines. In another example, you select a batch of 50 schedules that have matching attributes except that two different target accounts are included. Then again one summary journal entry is created, but now it has three lines, one for the debit and one each for the two credit accounts.
When you create a summary journal entry, all of the key attributes to create the summary journal entry matched except the revenue recognition destination account. The Details column in the summary journal entry displays the number of rows included in the detail. The entry in the Details column is link. When you click the link, a popup window opens with the details. If the number of rows in the Details column is very large, you may prefer to create a saved search to review the details rather than clicking through. For guidance, see Saved Search for Revenue Recognition Journal Details.
The details window includes links to the schedule and source transaction records.
Revenue recognition schedules and source transactions may be included in a single summary journal entry line and general ledger posting when the required attributes match.
Intercompany customers are summarized separately from other customers. However, if an intercompany customer has multiple revenue recognition schedules, those schedules are also summarized.
Using the Summary option for revenue recognition journal entries has no effect on reporting. In reports that enable you to click through to the journal entry, you click through to the summary journal entry. From there, you can see the details as described earlier.