Configuring Subscription Items for Revenue Recognition

Note:

The information in this topic applies regardless of whether you check the Create Revenue Elements for Subscription Revisions accounting preference except where the accounting preference is clearly identified.

For more information about revenue recognition, see Revenue Recognition for SuiteBilling.

To configure subscription items for revenue recognition:

1. To set up subscription items with different subscription line types, create an item record for each subscription type.

   The preferred values for the subscription line types are in the following table.

   Subscription Line Type	Revenue Recognition Rule	Create Revenue Plans On	Allocation Type
   Subscription item fields for revenue recognition	Default Revenue Recognition Rule	Create Revenue Plans On	Allocation Type
   Commit Plus Overage - Recognition based on usage	Default Usage	Subscription Events	Excluded
   Commit Plus Overage - Even Amounts not dependent on usage	Default Fixed Recurring Fee	Revenue Arrangement Creation	Normal
   Commit Plus Overage - Recognition based on usage with Allocations	Default Adjustable Recurring Fee	Subscription Events	Normal

   With Create Revenue Elements for Subscription Revisions unchecked, there is no way to prospectively merge revenue recognition elements when allocating revenue.

   Tip:

   When the Advanced Revenue Management (Essentials) feature is enabled, the Deferred Revenue Account field on the Accounting subtab defaults to the system-generated Deferred Revenue account. If you want to use a different account, be sure to select it.

   For instructions, see Creating Items for Subscription Plans.

2. On the Revenue Recognition/Amortization subtab, in the Advanced Revenue Recognition group, set the other required fields for revenue recognition as follows:

   1. Use the same value for the required Rev Rec Forecast Rule as for the Revenue Recognition Rule.

   2. Accept the defaults for fields not included in the following table.

   3. The preferred values for the subscription line types are in the following table.

      Subscription Line Type	Revenue Recognition Rule	Create Revenue Plans On	Allocation Type
      Recurring – Adjustable, when the Create Revenue Elements for Subscription Revisions box is cleared	Default Adjustable Recurring Fee	Subscription Events	Normal
      Recurring – Adjustable, when the Create Revenue Elements for Subscription Revisions box is checked	Default Fixed Recurring Fee	Revenue Arrangement Creation	Normal
      Recurring – Fixed	Default Fixed Recurring Fee	Revenue Arrangement Creation	Normal
      One Time	Default Fixed Recurring Fee	Revenue Arrangement Creation	Normal
      Usage	Default Usage	Subscription Events	Exclude*
      Commit Plus Overage	Default Usage	Subscription Events	Exclude*

      * For the usage service line type, set the Allocation Type to Exclude to avoid potential errors when revenue arrangements are merged. Revenue Allocation is supported for recurring, commit plus overage, and one-time subscriptions. For more information, see Creating Usage Records.

3. On the Accounting subtab of the item record, select a Deferred Revenue Account.

Create Revenue Plans On is not a required field because you can set its value in the revenue element. Do not use Revenue Arrangement Creation as the value for Create Revenue Plans On when the rule uses subscription events as the start and end date sources.

The Default Adjustable Recurring Fee rule is an example of a rule with these start and end date sources. Revenue recognition plans that are created on subscription events do not include start and end dates. For more information about plans created on subscription events, see Calculations for Revenue Plans Created on Subscription Events.

Related Topics

• Revenue Recognition for SuiteBilling
• Revenue Recognition Rules for SuiteBilling
• Revenue Allocation for One-Time and Recurring Subscription Lines

General Notices