Generating Advanced Revenue Recognition Journal Entries

Note:

This topic relates to Advanced Revenue Management. For classic revenue recognition, see Generating Revenue Recognition Journal Entries.

To recognize deferred revenue that is due to post, you create revenue recognition journal entries. For information about the required permissions, see Month-End Revenue Processing.

You can schedule the journal entry creation process to run automatically. For instructions, see Scheduling Revenue Recognition Journal Entries.

Use the Create Revenue Recognition Journal Entries page generate journal entries on demand. On this page, you identify and select the revenue recognition plans that require journal entries for a specific posting period. This page retrieves a list of revenue recognition plans generated from revenue arrangements. Plans whose status is On Hold are not included in the list. You can filter the list of revenue recognition plans that are displayed.

NetSuite creates revenue recognition journal entries when you click the Create Journal Entries button on this page. Up to 50,000 revenue recognition plans may be included in a single summarized journal entry. Multiple journal entries are created if you process more than 50,000 plans or exceed the 1,000 line limit for detailed journal entries.

For example, if 50,000 revenue plans use the same accounts and have same classifications (class, department, location, and custom segments):

If the accounting preference Create Revenue Journals in GL is set to Detail, the process creates 100 journal entries. Each journal entry has 1,000 lines with two lines per revenue plan.
If the accounting preference Create Revenue Journals in GL is set to Summary, the process creates one journal entry with two lines. The Details column in the journal entry includes a link that says 50,000 rows. The link opens a popup page that displays lines for the 50,000 revenue plans.

For more information about line limitations in NetSuite, see Line Limitations for Transactions.

Note:

Custom segments do not support sourcing or filtering for revenue recognition journal entries. For more information, see Filtering for a Custom Segment and Dynamic Default Value Sourcing for Custom Segments.

The journal entries post immediately when you click the button or are routed for approval if required.

Note:

The time required to complete processing the journal entries varies depending how many plans are included. Completion may require several hours if you are processing thousands of plans.

If you void or delete an advanced revenue recognition journal entry, the link to the journal is removed from the revenue recognition plan. The revenue plan becomes available for recognition in the same period as the journal you voided or deleted.

To generate revenue recognition journal entries:

Revenue managers and accounts, go to Revenue > Revenue Recognition Journal Entries > Schedule Revenue Recognition Journal Entries > Run Now.

Administrators, go to Transactions > Financial > Schedule Revenue Recognition Journal Entries > Run Now.
Select a Posting Period.

You cannot post revenue recognition journal entries in closed periods. If the period is closed or locked for accounts receivable, the journal entries are posted in the next open period.

You can post revenue recognition journal entries in periods that are locked for accounts receivable as part of the Period Close Checklist.
Optionally, check Include Prior Periods to recognize revenue for all periods prior to and including the selected Posting Period.
In the Journal Entry Date field, set the transaction date of revenue recognition journal entries you are creating.

You can set the default date that shows in this field by setting a preference at Setup > Accounting > Accounting Preferences. Select a date in the Default Revenue Recognition Journal Date to field.
If your role has permission to enter journal entries that are approved, check the Approve Journal box to approve the journal entry when you save it. Clear this box to submit this journal entry for approval after it is entered. This box appears only when the accounting preference Require Approvals on Journal Entries is checked.
Use the other filters at the top of the page to limit the list of revenue recognition plans displayed for this period. The filters you select become your default for this page.
- Subsidiary – Select a Subsidiary. This required filter appears only on NetSuite OneWorld implementations. For more information about subsidiaries, see Subsidiaries in OneWorld.
- Accounting Book – Select an Accounting Book. This required filter appears only when the Multi-Book Accounting feature is enabled. For more information about the Multi-Book Accounting feature, see Multi-Book Accounting Overview.
- Revenue Recognition Source – This filter appears when the Revenue Recognition and Advanced Revenue Management (Essentials) features are both enabled.
  - - All – – Select this option to list all revenue recognition schedules and revenue recognition plans that meet the criteria.
  - Revenue Recognition Schedules – Select this option to list only revenue recognition schedules that meet the criteria in the Revenue Recognition Schedules subtab. The Revenue Recognition Plans subtab is empty.
  - Revenue Recognition Plans – Select this option to include only revenue recognition plans that meet the criteria in the Revenue Recognition Plans subtab. The Revenue Recognition Schedules subtab is empty.
- Transaction Type – Select a transaction type to filter the list, or select – All – to include all transaction types.
- Customer – Select a customer to filter the list. When the Projects feature is enabled, this filter is called Customer:Project.
- Type – Select the type of revenue recognition schedule to include in the list, or select – All – to include all types of schedules. This filter appears only when the Revenue Recognition feature is enabled.
- Item Type – Select an item type to include in the list, or select – All – to include all item types.
- Target Account – Select the income account target for the revenue recognition journal entries as a filter for the list.
- Deferral Account – Select the deferred revenue account source for the revenue recognition journal entries as a filter for the list.
- Transaction Date, From and To – When you select a date range in the Transaction Date field, the From and To fields are automatically populated. If you enter or select dates directly in the From and To fields, the Transaction Date field displays (Custom).
The page shows a list of revenue recognition journal entries due to post, subject to the filters you select. When the classic Revenue Recognition feature is also enabled, the list has two subtabs: Revenue Recognition Plans and Revenue Recognition Schedules.

The following information is shown on each line of the list in the Revenue Recognition Plans subtab. For a list of the columns in the Revenue Recognition Schedules subtab, see Generating Revenue Recognition Journal Entries.
- Source Transaction – A link to the related transaction
- Item – A link to the item record
- Plan No. – A link to the related revenue recognition plan
- Customer – A link to the related customer
- Revenue Recognition Rule – A link to the related revenue recognition rule
- Planned Period – The period planned for revenue recognition.
- Amount – The amount to be recognized in the journal entry for this line
If the accounting preference Enable Advanced Cost Amortization is checked, additional columns appear for allocated contract acquisition and item-specific resale and labor costs. For details, see Advanced Cost Amortization.
Check or clear the Select Individual Schedules box:
- When you check the box, journal entries are created only for the revenue recognition plans you select.
  
  To select plans, check the box in the Select column next to each plan for which you want to generate journal entries.
  
  If the Revenue Recognition Plans list includes multiple pages, then the following is true:
  - If you click Mark All or Unmark All, only boxes on the current page are affected.
  - You must click Create Journal Entries to create an entry for each page of plans.
- When you clear the box, the Revenue Recognition Plans list displays a maximum of 100 plans, and the page header includes an Estimate button.
  - Click Estimate to count the number of plans and calculate the amount for all of the plans included with your current filter settings.
  - Adjust the filters as needed, and click Estimate again.
Click Create Journal Entries.
On the Process Status page, use the link in the Submission Status column to view the journal entries for the submission. Journal entries created using Advanced Revenue Management are identified by the process type Create Advanced RevRec Journal Entries.

You receive an error if revenue recognition plans were updated while your journals were being generated. To complete the process, return to the Create Revenue Recognition Journal Entries page and ensure the same criteria are selected. Then click Create Journal Entries again.

To generate revenue recognition journal entries:

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