Enabling the Advanced Revenue Management (Essentials) Feature
When you enable Advanced Revenue Management (Essentials), NetSuite automatically adds the following system accounts:
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Deferred Revenue – for contract liabilities
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Deferred Revenue Clearing
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Unbilled Receivable – for contract assets (This account already exists if you have previously enabled the Revenue Commitments feature.)
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Revenue Arrangement (a non-posting account)
If you use the Automated Intercompany Management feature, NetSuite automatically checks the Eliminate Intercompany Transactions box on the system deferred revenue and unbilled receivable accounts. This enables the automatic generation of elimination journal entries for intercompany sales. For more information, see Automated Intercompany Management Overview.
When the Advanced Revenue Management (Essentials) feature is enabled, revenue for all items is deferred until revenue recognition journal entries are created. Item records use the system–generated deferred revenue account and the Default Standard revenue recognition rule by default. You must select a value for the Create Revenue Plans On field on the item record to finish item configuration. For more information, see the following topics:
The NetSuite order-to-revenue workflow begins with the sales order or invoice, and specifically includes these transactions:
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Sales order
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Invoice
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Cash sale
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Return authorization
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Credit memo
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Cash refund
If you have been using classic revenue recognition, order-to-revenue workflows begun before you enabled the Advanced Revenue Management (Essentials) feature continue to use classic revenue recognition. Any new order-to-revenue workflows will use Advanced Revenue Management (Essentials). For details, see Revenue Recognition and Advanced Revenue Management (Essentials).
To use Advanced Revenue Management (Essentials), the Accounting Periods feature must be enabled because accounting periods are used for revenue recognition plans.
When you enable the Advanced Revenue Management (Essentials) feature, it cannot be disabled.
Watch the following video to learn how to enable the Advanced Revenue Management (Essentials) feature.
This video also shows you how to enable Advanced Revenue Management (Revenue Allocation). For more information about that feature, see Enabling the Advanced Revenue Management (Revenue Allocation) Feature.
To enable Advanced Revenue Management (Essentials):
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Go to Setup > Company > Setup Tasks > Enable Features.
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Click the Accounting subtab and check Advanced Revenue Management (Essentials).
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Make sure that Accounting Periods is also checked.
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Click Save.
After you have enabled Advanced Revenue Management (Essentials), you can enable the related feature, Rule-Based Recognition Treatment. For information about this feature, see Rule-Based Recognition Treatment.