Creating a Custom Revenue Recognition Event

Revenue recognition events trigger the creation of revenue recognition plans. The standard revenue recognition events are associated with revenue arrangement creation and billing. When other features are enabled, other standard events are included, such as those for projects and subscriptions. To increase flexibility of revenue processing, you can create revenue recognition events in addition to those provided by NetSuite.

Each revenue recognition event must have a custom recognition event type. You must create at least one custom recognition event type before you can create a revenue recognition event. The custom recognition event type links the item record to the revenue recognition event record. On item records, the custom recognition event type is an option in the Create Revenue Plans On list. On revenue recognition event records, it is an option in the required Event Type list.

The Custom Recognition Event Type permission controls access to the custom recognition event type record. The Revenue Plan permission controls access to the revenue recognition event record. The standard Revenue Manager and Administrator roles include full access for these permissions. The Revenue Accountant role includes view access.

Note:

You cannot use custom events with subscription revisions. For information about subscription revisions, see Revenue Recognition for SuiteBilling.

For details about revenue recognition events and event types, see the following:

• Custom Recognition Event Type

• Revenue Recognition Event

Custom Recognition Event Type

To create a custom recognition event type, go to Lists > Accounting > Custom Recognition Event Types > New. The custom recognition event type record has the following fields:

• Custom Recognition Event Type – Enter the name for this type of revenue recognition event. This name appears in the list for the Create Revenue Plans On field in the item record on the Revenue Recognition/Amortization subtab. It is also included as an option in the required Event Type list in the revenue recognition event record.

• Create Recognition Plan per Event – This box is checked by default. When it is checked, revenue recognition events of this type generate a revenue plan for each event.

  When you clear this box, each event generates recognition plan that is merged into the resulting revenue recognition plan. The plan header does not include start and end dates. This type of merged revenue plan is appropriate for projects and subscriptions.

• Percent Complete – When you check this box, revenue recognition event records that use this event type include a Cumulative Percent Complete field.

  When this box is clear, the revenue recognition event records that use this event type include fields for Quantity and Amount (Transaction Currency).

• Inactive – When this box is checked, the recognition type is not displayed as an option in any list.

After you have created the revenue recognition event type, you can use scripting to populate revenue recognition event records.

Revenue Recognition Event

The purpose of the revenue recognition event record is to provide enough information to create a revenue recognition plan. The necessary information consists of a sales contract source, a value for the revenue recognition rule amount source, and three additional required fields. The sales contract source usually includes an item which contains the revenue recognition rule reference needed to generate the revenue plan. If the source is a journal entry, the revenue recognition rules is set directly on the transaction. The revenue recognition rule can also be set on the revenue element before revenue recognition plans are created. The other required fields are the event type, purpose, and date.

The following procedure describes the steps to create a revenue recognition event in the NetSuite UI. You must create the appropriate revenue recognition event type has been created.

Note:

You should automate this process using SuiteScript. The revenue recognition event has been exposed to SuiteScript.

To create a revenue recognition event:

1. Go to Lists > Accounting > Revenue Recognition Events > New (Administrator).

2. Select a sales contract source from which a revenue element can be generated. Ensure that the source you select includes an item whose Create Revenue Plans On value matches the Event Type you select in the next step. The following options are available for the sales contract source. Select only one:

   • Transaction Line – All lines of all sales transactions are available except those with items that have the Direct Revenue Posting box checked. Journal entries with revenue recognition rules are also included.

   • Subscription Line – This option is available only when the SuiteBilling feature is enabled.

   • Project Revenue Rule – This option is available only when the Project Management feature is enabled.

   • Custom Record Type and Custom Record – Select a Custom Record Type and then select a Custom Record. Use these fields only in combination with the revenue management plug-in.

   Note:

   The maximum number of lines that can appear on a transaction record’s sublist is 10,000. For more information, see Limits for Display of Transaction Lists and Sublists.

3. Complete the following required fields:

   • Event Type – Select a previously created revenue recognition event type. This event type must match the Create Revenue Plan On value on the revenue element associated with the sales contract source.

   • Event Purpose – Select Actual or Forecast. This list is not available until you select a sales contract source.

   • Event Date – Enter or select a date for the trigger.

     When the SuiteBilling feature is enabled, Start Date and End Date fields are included to align with subscription start and end dates.

4. Enter a value in one of the following fields. These fields align with the Amount Source field in revenue recognition rules. You must enter a value in the field that matches the revenue recognition rule for your amount source.

   • Quantity – Enter a value in this field when the Amount Source for the associated revenue recognition rule is Event-Percent based on quantity. This field is not available when the Event Type is one that has Percent Complete checked.

   • Amount (Transaction Currency) – Enter a value in this field when the Amount Source for the associated revenue recognition rule is Event-Percent based on amount. This field is not available when the Event Type is one that has Percent Complete checked.

   • Cumulative Percent Complete – Enter a value in this field when the Amount Source for the associated revenue recognition rule is Event-Percent Complete. This field is available only when the Event Type is one that has Percent Complete checked.

Related Topics

Setup for Advanced Revenue Management (Essentials)

Enabling the Advanced Revenue Management (Essentials) Feature

Mapping Revenue Recognition Fields

Setting Advanced Revenue Management (Essentials) Preferences

Revenue Arrangement Approval Routing

General Notices