General Accounting Preferences

The following preference categories are available on the General subtab of the Accounting Preferences page:

General Ledger
Accounts Receivable
Accounts Payable
Classifications
Revenue Recognition
Classic Revenue Recognition Only
Advanced Revenue Management Only
Amortization
OneWorld
Budget
Exchange Rate Integration

General Ledger

Field	Description
Use Account Numbers	Set this option to see both account numbers and names for general ledger accounts in lists, chart of accounts, and most financial reports. If you clear this box, both fields display only account name in your reports and forms.
Use Legal Name in Account	Set this option to add the Legal Name field to the general ledger account record. This field is useful in countries where the legal name of an entity is required by law. If you this box after using the Legal Name field, the field isn't available anymore in the UI, SuiteScript, SOAP web services, CSV import, or ODBC. However, system notes keeps an audit trail for activity on Legal Name field. By default, this option isn't set.
Show All Transaction Types In Reconciliation	Set this option to show all transactions on the reconciliation pages, including positive or negative amounts of certain transaction types. When this preference is enabled, the Reconcile Bank Statement and Reconcile Credit Card Statement pages display: Negative amount transactions that are a Check, Credit Card Refund, Bank Transfer, Cash Sale, or Bill Credit Positive amount transactions that are a Deposit, Credit Card Charge, Bank Transfer, Liability Payment, Bill Payment, Sales Tax Payment, or Expense Report Important: To reconcile Custom transactions, check the Show All Transaction Types In Reconciliation box.
Expand Account Lists	Set this option to allow additional choices in account lists. For example, you can select Cost of Goods Sold and balance sheet accounts for items, or asset accounts for vendors. Clear this box to restrict lists to frequently used accounts. For example, you can select income and expense accounts on items to be resold, or expense accounts on purchases. Important: To ensure that non-inventory data appears correctly in reports and registers, best practice is to associate non-inventory items with Income/Other Income accounts.
Combine Paychecks into Payroll Batch Totals	Set this option to hide individual employee paycheck totals from roles that shouldn't see them when posting payroll batch totals to the general ledger. When you set this option, a message appears advising you to remove the Report Customization permission from any roles that shouldn't see individual paychecks. This also disables filtering the general ledger by employee and any existing filters that have employee are removed. If you clear this box, a popup message warns you that individual paycheck data will be visible on the general ledger.
Cash Basis Reporting	Set this option to use cash basis for standard reports where supported. This also sets the default for custom reports created from standard that supports cash basis. You can change this for an individual custom report by setting the Cash Basis option on the More Options page of the Report Builder or Financial Report Builder. For details or a list of supported reports, see Setting Up Cash Basis Reporting.
Aging Reports Use	Select the Due Date option for reports to age by the due date assigned for bills or invoices, or Transaction Date for reports to age by the transaction date.
Void Transactions Using Reversing Journals	Set this option to enable use of the Void button to create a reversing journal entry for checks and transactions on a different date or period than the original date.
Set Reversal Variance Date Equal to the Reversing Journal Date When Voided Transaction Is in a Closed Period	Set this option to require NetSuite to use the date specified in a reversing foreign currency gain and loss variances on voided transactions. This option is only available when the Void Transaction Using Reversing Journals feature is enabled. If you clear this box, NetSuite uses the current date for variance and reversal lines, instead of the date of the reversing journal entry.
Use Journal Entry Summarization on Intercompany Elimination	This box is checked by default. When set, similar elimination journal entries are grouped in a single, summarized journal entry. For details, see Summarized Intercompany Elimination Journal Entries. Clear this box to prevent NetSuite from grouping similar elimination journal entries.
Require Approvals on Journal Entries	Set this option to require approval for journal entries before posting them to the general ledger. Employees with approval permission can mark their own entries as approved. Note: If you edit a sales order when using a role with permission to approve sales orders, a sales order status isn't set to the Pending Approval status. If you've enabled the Journal Entries approval routing preference and are using SuiteFlow for journal approval, this field doesn't display.
Allow User Events on Bulk Journal Approval	Set this option to run user events like SuiteScript and SuiteFlow (Workflow) after bulk journal approval.
Allow GL Custom Segment Deletion	Set this option to allow users with the Setup Accounting permission to delete custom segments. By default, this isn't enabled. If this option isn't set, users can't delete custom segments, but they can inactivate them.
Enable Accounting Period Window	Set this option to automatically keep a minimum number of unlocked current and future accounting periods. By default, this isn't enabled. Use the Minimum Period Window Size preference to set how many periods stay unlocked. Enabling this feature automatically sets the Allow Transaction Date Outside of Posting Period preference to Disallow. You can manually set it to Warn or Allow.
Minimum Period Window Size	Use this option to set the number of unlocked current and future periods for the accounting period window (1- 1000). NetSuite checks the range daily and automatically unlocks the next future period as needed. The check runs at 11 PM Auckland, New Zealand time zone (GMT +12).
Allow Transaction Date Outside of Posting Period	Set your preference for handling transaction entries that don't match. Choose one: Disallow – If you choose this option, users can't save a transaction unless the transaction date falls within the posting period. Warn – If you choose this option, users get a warning if the transaction date isn't in the set posting period, but can click Ok and save the transaction. Allow – If you choose this option, users can post transactions outside the posting period without a warning.
GL Audit Numbering Method	Set this option to specify when the GL Audit Numbering task runs as part of closing a period. You can only do this in the last month of the fiscal year, period, or quarter. GL audit numbering by quarter or year, also numbers transactions in closed periods. Note: You'll only see the GL Audit Numbering method if you enable GL Audit Numbering at Setup > Company > Enable Features > Accounting under Basic Features. You must also enable Accounting Periods. Warning: Changing the GL Audit Numbering Method may cause previously numbered transactions to be assigned new numbers.
Default Posting Period When Transaction Date in Closed Period	Set which period the system uses to post a backdated transaction from a closed period. Current Period – If you choose this option, backdated transactions from a closed accounting period post to the current period (default setting). First Open Period – If you choose this option, backdated transactions from a closed accounting period post to the first open accounting period.
Create and Edit Inventory Transactions Dated in Closed Periods	Clear this box to prevent changes to transactions that would trigger inventory costing calculations in closed periods. Set this option to allow changes for new transactions or in fields that trigger inventory costing calculations for an item, even in closed periods. Note: If this option is enabled in NetSuite OneWorld, this preference affects all subsidiaries. Note: Even if you allow editing and creation new transactions in a closed period, you may still see this error requiring you to post changes in an open period: “The transaction date isn't within an open accounting period. One or more fields on this transaction can trigger inventory costing calculations in a closed period. Click OK, and then do one of the following: Change the transaction date to an open accounting period if this is a new transaction. Cancel the edits if you're editing an existing transaction from a closed period.”
Allow Inventory Transactions Dated Outside the Posting Period	Set this option to allow transactions to be dated outside the posting period. Clear this box to prevent transactions to be dated outside the posting period.
Allow Quick Close of Accounting Periods	Set this option to use Quick Close feature, so you can mark all tasks complete for one or more open accounting periods with one click. Important: You need both the Set Up Accounting and Period Closing Management permissions to enable this option. The box is invisible if you don't have the Period Closing Management permissions.
Allow Non-GL Changes Is Set by Default	When you set this option, NetSuite automatically checks the Allow Non-G/L Changes box for each new accounting period you create. Existing accounting periods aren't changed.
Enable Consolidation Period End Journals (Primary Accounting Book)	Set this option to create consolidation journals every period for each parent subsidiary with the Period End Journal Entries feature enabled. If you use multi-book accounting, this option applies only to subsidiaries in the primary accounting book. The Enable Consolidation option controls whether consolidation journals are created for secondary accounting books.

Field

Description

Use Account Numbers

Set this option to see both account numbers and names for general ledger accounts in lists, chart of accounts, and most financial reports. If you clear this box, both fields display only account name in your reports and forms.

Use Legal Name in Account

Set this option to add the Legal Name field to the general ledger account record. This field is useful in countries where the legal name of an entity is required by law.

If you this box after using the Legal Name field, the field isn't available anymore in the UI, SuiteScript, SOAP web services, CSV import, or ODBC. However, system notes keeps an audit trail for activity on Legal Name field.

By default, this option isn't set.

Show All Transaction Types In Reconciliation

Set this option to show all transactions on the reconciliation pages, including positive or negative amounts of certain transaction types.

When this preference is enabled, the Reconcile Bank Statement and Reconcile Credit Card Statement pages display:

Negative amount transactions that are a Check, Credit Card Refund, Bank Transfer, Cash Sale, or Bill Credit
Positive amount transactions that are a Deposit, Credit Card Charge, Bank Transfer, Liability Payment, Bill Payment, Sales Tax Payment, or Expense Report

Important:

To reconcile Custom transactions, check the Show All Transaction Types In Reconciliation box.

Expand Account Lists

Set this option to allow additional choices in account lists. For example, you can select Cost of Goods Sold and balance sheet accounts for items, or asset accounts for vendors.

Clear this box to restrict lists to frequently used accounts. For example, you can select income and expense accounts on items to be resold, or expense accounts on purchases.

Important:

To ensure that non-inventory data appears correctly in reports and registers, best practice is to associate non-inventory items with Income/Other Income accounts.

Combine Paychecks into Payroll Batch Totals

Set this option to hide individual employee paycheck totals from roles that shouldn't see them when posting payroll batch totals to the general ledger.

When you set this option, a message appears advising you to remove the Report Customization permission from any roles that shouldn't see individual paychecks. This also disables filtering the general ledger by employee and any existing filters that have employee are removed.

If you clear this box, a popup message warns you that individual paycheck data will be visible on the general ledger.

Cash Basis Reporting

Set this option to use cash basis for standard reports where supported. This also sets the default for custom reports created from standard that supports cash basis. You can change this for an individual custom report by setting the Cash Basis option on the More Options page of the Report Builder or Financial Report Builder. For details or a list of supported reports, see Setting Up Cash Basis Reporting.

Aging Reports Use

Select the Due Date option for reports to age by the due date assigned for bills or invoices, or Transaction Date for reports to age by the transaction date.

Void Transactions Using Reversing Journals

Set this option to enable use of the Void button to create a reversing journal entry for checks and transactions on a different date or period than the original date.

Set Reversal Variance Date Equal to the Reversing Journal Date When Voided Transaction Is in a Closed Period

Set this option to require NetSuite to use the date specified in a reversing foreign currency gain and loss variances on voided transactions. This option is only available when the Void Transaction Using Reversing Journals feature is enabled.

If you clear this box, NetSuite uses the current date for variance and reversal lines, instead of the date of the reversing journal entry.

Use Journal Entry Summarization on Intercompany Elimination

This box is checked by default. When set, similar elimination journal entries are grouped in a single, summarized journal entry. For details, see Summarized Intercompany Elimination Journal Entries.

Clear this box to prevent NetSuite from grouping similar elimination journal entries.

Require Approvals on Journal Entries

Set this option to require approval for journal entries before posting them to the general ledger. Employees with approval permission can mark their own entries as approved.

Note:

If you edit a sales order when using a role with permission to approve sales orders, a sales order status isn't set to the Pending Approval status.

If you've enabled the Journal Entries approval routing preference and are using SuiteFlow for journal approval, this field doesn't display.

Allow User Events on Bulk Journal Approval

Set this option to run user events like SuiteScript and SuiteFlow (Workflow) after bulk journal approval.

Allow GL Custom Segment Deletion

Set this option to allow users with the Setup Accounting permission to delete custom segments. By default, this isn't enabled.

If this option isn't set, users can't delete custom segments, but they can inactivate them.

Enable Accounting Period Window

Set this option to automatically keep a minimum number of unlocked current and future accounting periods. By default, this isn't enabled. Use the Minimum Period Window Size preference to set how many periods stay unlocked.

Enabling this feature automatically sets the Allow Transaction Date Outside of Posting Period preference to Disallow. You can manually set it to Warn or Allow.

Minimum Period Window Size

Use this option to set the number of unlocked current and future periods for the accounting period window (1- 1000). NetSuite checks the range daily and automatically unlocks the next future period as needed. The check runs at 11 PM Auckland, New Zealand time zone (GMT +12).

Allow Transaction Date Outside of Posting Period

Set your preference for handling transaction entries that don't match. Choose one:

Disallow – If you choose this option, users can't save a transaction unless the transaction date falls within the posting period.
Warn – If you choose this option, users get a warning if the transaction date isn't in the set posting period, but can click Ok and save the transaction.
Allow – If you choose this option, users can post transactions outside the posting period without a warning.

GL Audit Numbering Method

Set this option to specify when the GL Audit Numbering task runs as part of closing a period. You can only do this in the last month of the fiscal year, period, or quarter. GL audit numbering by quarter or year, also numbers transactions in closed periods.

Note:

You'll only see the GL Audit Numbering method if you enable GL Audit Numbering at Setup > Company > Enable Features > Accounting under Basic Features. You must also enable Accounting Periods.

Warning:

Changing the GL Audit Numbering Method may cause previously numbered transactions to be assigned new numbers.

Default Posting Period When Transaction Date in Closed Period

Set which period the system uses to post a backdated transaction from a closed period.

Current Period – If you choose this option, backdated transactions from a closed accounting period post to the current period (default setting).
First Open Period – If you choose this option, backdated transactions from a closed accounting period post to the first open accounting period.

Create and Edit Inventory Transactions Dated in Closed Periods

Clear this box to prevent changes to transactions that would trigger inventory costing calculations in closed periods.

Set this option to allow changes for new transactions or in fields that trigger inventory costing calculations for an item, even in closed periods.

Note:

If this option is enabled in NetSuite OneWorld, this preference affects all subsidiaries.

Note:

Even if you allow editing and creation new transactions in a closed period, you may still see this error requiring you to post changes in an open period:

“The transaction date isn't within an open accounting period. One or more fields on this transaction can trigger inventory costing calculations in a closed period. Click OK, and then do one of the following:

Change the transaction date to an open accounting period if this is a new transaction.

Cancel the edits if you're editing an existing transaction from a closed period.”

Allow Inventory Transactions Dated Outside the Posting Period

Set this option to allow transactions to be dated outside the posting period.

Clear this box to prevent transactions to be dated outside the posting period.

Allow Quick Close of Accounting Periods

Set this option to use Quick Close feature, so you can mark all tasks complete for one or more open accounting periods with one click.

Important:

You need both the Set Up Accounting and Period Closing Management permissions to enable this option. The box is invisible if you don't have the Period Closing Management permissions.

Allow Non-GL Changes Is Set by Default

When you set this option, NetSuite automatically checks the Allow Non-G/L Changes box for each new accounting period you create. Existing accounting periods aren't changed.

Enable Consolidation Period End Journals (Primary Accounting Book)

Set this option to create consolidation journals every period for each parent subsidiary with the Period End Journal Entries feature enabled.

If you use multi-book accounting, this option applies only to subsidiaries in the primary accounting book. The Enable Consolidation option controls whether consolidation journals are created for secondary accounting books.

Accounts Receivable

Field	Description
Apply Payments Through Top-Level Customer Only	Set this option to apply payments, deposits, and credit only the through the top level customer in a hierarchy. Clear this box to allow payments, deposits, and credits to open invoice entered for any customer or subcustomer. This option is available only if Consolidated Payments feature is enabled.
Show Only Open Transactions on Statements	Set this option to show only open transactions when viewing or printing statements.
Customer Credit Limit Handling	Choose how you want to handle customers who exceed their credit limit: Ignore – Enter sales orders and invoices with no warning when a customer is at or over their limit. Warn Only – Get a warning when entering a sales order or invoice that puts the customer at or above their credit limit. You can choose to continue or cancel. Note that the warning isn't displayed while the invoice is in the Pending Approval state. Enforce Holds – Block new sales order, invoices or adding items to orders if the customer is at or over their limit. Note: This setting doesn't affect opportunities, estimates, or cash sales. However, the setting applies to everyone unless an administrator allows overrides that permits individuals to set their own preference at Setup > Company > General Preferences.
Open Transactions on Statements	Choose how you want statement open transactions handled: Open Transactions by Today – Only invoices with payment dates after the current date are included when Show Only Open Transactions is checked. Open Transactions by Statement Date – Only transactions open as of the statement date are included. The balance shown is as of the statement date.
Customer Credit Limit Includes Orders	Clear this box to include only billed orders in credit limit calculations. Set this option to include entered but unbilled orders as well. This ensures that customers don't place orders over their credit limit. Note: Unbilled orders are included whether they're approved or not. Closed and canceled orders don't.
Days Overdue for Warning/Hold	Set a grace period after invoice due date, after which, customers can't place new orders on terms until they've paid their overdue invoices. Enter the number of days overdue before warning is sent.
Include Tax for Term Discounts	Set this option to include taxes for term discount calculations. For example, If an invoice has terms of 1% Discount Net and a customer pays within 30 days, they receive a 1% discount. Total amount for items sold = $1,000 Tax = 10% ($100) Shipping= $100 If the Include Tax for Term Discounts preference is on, the discount is 1% * $1,100. If the Include Shipping for Term Discounts preference is on, the discount is 1% * $1,100. If both preferences are on (Include Tax for Term Discounts and Include Shipping for Term Discounts), the discount is 1% * $1,200. If both preferences are off (Include Tax for Term Discounts and Include Shipping for Term Discounts), the discount is 1% * $1,000.
Include Shipping for Term Discounts	Set this option to include shipping charges for term discount calculations.
Apply Payments without Invoice Numbers	Specify how NetSuite applies payments without invoice numbers. For details, see Setting Accounting Preferences.

Field

Description

Apply Payments Through Top-Level Customer Only

Set this option to apply payments, deposits, and credit only the through the top level customer in a hierarchy. Clear this box to allow payments, deposits, and credits to open invoice entered for any customer or subcustomer.

This option is available only if Consolidated Payments feature is enabled.

Show Only Open Transactions on Statements

Set this option to show only open transactions when viewing or printing statements.

Customer Credit Limit Handling

Choose how you want to handle customers who exceed their credit limit:

Ignore – Enter sales orders and invoices with no warning when a customer is at or over their limit.
Warn Only – Get a warning when entering a sales order or invoice that puts the customer at or above their credit limit. You can choose to continue or cancel. Note that the warning isn't displayed while the invoice is in the Pending Approval state.
Enforce Holds – Block new sales order, invoices or adding items to orders if the customer is at or over their limit.

Note:

This setting doesn't affect opportunities, estimates, or cash sales. However, the setting applies to everyone unless an administrator allows overrides that permits individuals to set their own preference at Setup > Company > General Preferences.

Open Transactions on Statements

Choose how you want statement open transactions handled:

Open Transactions by Today – Only invoices with payment dates after the current date are included when Show Only Open Transactions is checked.
Open Transactions by Statement Date – Only transactions open as of the statement date are included. The balance shown is as of the statement date.

Customer Credit Limit Includes Orders

Clear this box to include only billed orders in credit limit calculations. Set this option to include entered but unbilled orders as well. This ensures that customers don't place orders over their credit limit.

Note:

Unbilled orders are included whether they're approved or not. Closed and canceled orders don't.

Days Overdue for Warning/Hold

Set a grace period after invoice due date, after which, customers can't place new orders on terms until they've paid their overdue invoices.

Enter the number of days overdue before warning is sent.

Include Tax for Term Discounts

Set this option to include taxes for term discount calculations.

For example, If an invoice has terms of 1% Discount Net and a customer pays within 30 days, they receive a 1% discount.

Total amount for items sold = $1,000
Tax = 10% ($100)
Shipping= $100
If the Include Tax for Term Discounts preference is on, the discount is 1% * $1,100.
If the Include Shipping for Term Discounts preference is on, the discount is 1% * $1,100.
If both preferences are on (Include Tax for Term Discounts and Include Shipping for Term Discounts), the discount is 1% * $1,200.
If both preferences are off (Include Tax for Term Discounts and Include Shipping for Term Discounts), the discount is 1% * $1,000.

Include Shipping for Term Discounts

Set this option to include shipping charges for term discount calculations.

Apply Payments without Invoice Numbers

Specify how NetSuite applies payments without invoice numbers. For details, see Setting Accounting Preferences.

Accounts Payable

Field	Description
Default Vendor Payments To Be Printed	Set this option to be able to check the Be Printed box by default when processing bill payments.
Vendor Credit Limit Warnings	Set this option to get a warning when you exceed the vendor's credit limit. This setting applies to everyone unless an administrator allows overrides for individuals to set their own preference at Setup > Company > General Preferences.
Vendor Credit Limit Includes Orders	Set this option to include entered but unbilled purchase orders when you make vendor credit limit calculations. This ensures that vendors don't have new orders entered over their credit limit. Unbilled orders are included whether they're approved or not. Closed and canceled orders aren't included. Clear this box to include only billed orders for vendor credit limit calculations.
Use In-Transit Vendor Payments by Default	Set this option to use in-transit vendor payments by default. You can change this for individual payments.
Vendor In-Transit Payment Account	Choose an account to serve as the interim Cash In Transit (CIT) account where in-transit funds are held until confirmed by the vendor’s bank.
Vendor Prepayment Account	Choose the default account for new vendor prepayment transaction. You can set this at the company, or subsidiary level NetSuite OneWorld. For information about setting up the vendor prepayment account, see Configuring a Default Vendor Prepayment Account.
Auto-Apply Vendor Prepayments	Set this option to automatically apply vendor prepayments to your bills, so you don't need to do it manually. For more information about the Auto-Apply accounting preference, see Configuring Vendor Prepayments With Auto-Apply.
Allow Bill Consolidation of Purchase Orders with Different Terms	Set this option to allow consolidation for purchase orders with different payment terms.

Field

Description

Default Vendor Payments To Be Printed

Set this option to be able to check the Be Printed box by default when processing bill payments.

Vendor Credit Limit Warnings

Set this option to get a warning when you exceed the vendor's credit limit.

This setting applies to everyone unless an administrator allows overrides for individuals to set their own preference at Setup > Company > General Preferences.

Vendor Credit Limit Includes Orders

Set this option to include entered but unbilled purchase orders when you make vendor credit limit calculations. This ensures that vendors don't have new orders entered over their credit limit. Unbilled orders are included whether they're approved or not. Closed and canceled orders aren't included.

Clear this box to include only billed orders for vendor credit limit calculations.

Use In-Transit Vendor Payments by Default

Set this option to use in-transit vendor payments by default. You can change this for individual payments.

Vendor In-Transit Payment Account

Choose an account to serve as the interim Cash In Transit (CIT) account where in-transit funds are held until confirmed by the vendor’s bank.

Vendor Prepayment Account

Choose the default account for new vendor prepayment transaction. You can set this at the company, or subsidiary level NetSuite OneWorld.

For information about setting up the vendor prepayment account, see Configuring a Default Vendor Prepayment Account.

Auto-Apply Vendor Prepayments

Set this option to automatically apply vendor prepayments to your bills, so you don't need to do it manually.

For more information about the Auto-Apply accounting preference, see Configuring Vendor Prepayments With Auto-Apply.

Allow Bill Consolidation of Purchase Orders with Different Terms

Set this option to allow consolidation for purchase orders with different payment terms.

Classifications

Field	Description
Make Departments Mandatory	Set this option to make the Department field required on records and transactions. Note: If this option is set and the field isn't required, update or create a custom form and specify on the form that the field isn't required. If you enable the preference to make departments required and use a custom form to display a department at both the header and line level, the selection is required at both the header and line level.
Make Classes Mandatory	Set this option to make the Class field required on records and transactions. Note: If this option is set and the field isn't required, update or create a custom form and specify on the form that the field isn't required. If you enable the preference to make classes required and use a custom form to display a class at both the header and line level, the selection is required at both the header and line level.
Make Locations Mandatory	Set this option to make the Location field required on records and transactions. Note: If this option is set and the field isn't required, update or create a custom form and specify on the form that the field isn't required. If you enable the preference to make locations required and use a custom form to display a location at both the header and line level, the selection is required at both the header and line level.
Allow Per-Line Departments (Divisions)	Set this option to associate a department with individual line items on a transaction. When this preference is enabled, you can choose a different department for each line item on transactions. With this option set, you can customize forms to select a department at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications. Clear this box to select a department in the header of a transaction. When this preference is disabled, the department chosen in the header applies to all line items on the transaction.
Allow Per-Line Classes (Sales Channels)	Set this option to associate a class with individual line items on a transaction. When this preference is enabled, you can choose a different class for each line item on transactions. With this option set, you can customize forms to select a class at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications. Clear this box to select a class in the header of a transaction. When this preference is disabled, the class chosen in the header applies to all line items on the transaction.
Allow Per-Line Locations (Warehouses)	Clear this box to select a location in the header of a transaction. When this preference is disabled, the location chosen in the header applies to all line items on the transaction. Set this option to associate a location with individual line items on a transaction. When this preference is enabled, you can choose a different location for each line item on transactions. With this option set, you can customize forms to select a location at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications. Note: If you use the Multi-Location Inventory feature, this preference is automatically enabled and doesn't display as an option on the Accounting Preferences page.
Always Allow Per-line Classifications on Journals	Set this option to enter line-item classes, departments, and locations on journal entries. For only journal entries, this preference overrides any other Allow Per Line Class/Dept/Location preferences you have set. With this preference set, you can customize journals to select a classification at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications.
Allow Non-balancing Classifications on Journal Entries	Set this option to prevent NetSuite from requiring journal entries to balance by department, class, or location. Clear this box to require that journal entries must always balance.
Allow Empty Classifications on Journals	Set this option if you want journal entries to override any other preferences set for required classes, departments, and locations. You can then create a journal entry that has line-items without classes, departments, and locations, even if you require them on other forms. Important: If you have enabled the Intercompany Time and Expense feature to allow intercompany time and expense transactions, and you have made classes, departments, or locations required, best practice is to enable the Allow Empty Classifications on Journal preference. For more information, see Enabling Intercompany Time and Expenses.

Field

Description

Make Departments Mandatory

Set this option to make the Department field required on records and transactions.

Note:

If this option is set and the field isn't required, update or create a custom form and specify on the form that the field isn't required.

If you enable the preference to make departments required and use a custom form to display a department at both the header and line level, the selection is required at both the header and line level.

Make Classes Mandatory

Set this option to make the Class field required on records and transactions.

Note:

If this option is set and the field isn't required, update or create a custom form and specify on the form that the field isn't required.

If you enable the preference to make classes required and use a custom form to display a class at both the header and line level, the selection is required at both the header and line level.

Make Locations Mandatory

Set this option to make the Location field required on records and transactions.

Note:

If this option is set and the field isn't required, update or create a custom form and specify on the form that the field isn't required.

If you enable the preference to make locations required and use a custom form to display a location at both the header and line level, the selection is required at both the header and line level.

Allow Per-Line Departments (Divisions)

Set this option to associate a department with individual line items on a transaction. When this preference is enabled, you can choose a different department for each line item on transactions.

With this option set, you can customize forms to select a department at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications.

Clear this box to select a department in the header of a transaction. When this preference is disabled, the department chosen in the header applies to all line items on the transaction.

Allow Per-Line Classes (Sales Channels)

Set this option to associate a class with individual line items on a transaction. When this preference is enabled, you can choose a different class for each line item on transactions.

With this option set, you can customize forms to select a class at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications.

Clear this box to select a class in the header of a transaction. When this preference is disabled, the class chosen in the header applies to all line items on the transaction.

Allow Per-Line Locations (Warehouses)

Clear this box to select a location in the header of a transaction. When this preference is disabled, the location chosen in the header applies to all line items on the transaction.

Set this option to associate a location with individual line items on a transaction. When this preference is enabled, you can choose a different location for each line item on transactions.

With this option set, you can customize forms to select a location at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications.

Note:

If you use the Multi-Location Inventory feature, this preference is automatically enabled and doesn't display as an option on the Accounting Preferences page.

Always Allow Per-line Classifications on Journals

Set this option to enter line-item classes, departments, and locations on journal entries. For only journal entries, this preference overrides any other Allow Per Line Class/Dept/Location preferences you have set.

With this preference set, you can customize journals to select a classification at both the header and line level at the same time. For more information, see Customizing Forms for Per-Line and Header Classifications.

Allow Non-balancing Classifications on Journal Entries

Set this option to prevent NetSuite from requiring journal entries to balance by department, class, or location. Clear this box to require that journal entries must always balance.

Allow Empty Classifications on Journals

Set this option if you want journal entries to override any other preferences set for required classes, departments, and locations. You can then create a journal entry that has line-items without classes, departments, and locations, even if you require them on other forms.

Important:

If you have enabled the Intercompany Time and Expense feature to allow intercompany time and expense transactions, and you have made classes, departments, or locations required, best practice is to enable the Allow Empty Classifications on Journal preference. For more information, see Enabling Intercompany Time and Expenses.

Revenue Recognition

Field	Description
Create Revenue Recognition Journals in GL	Provides a choice for posting revenue recognition journal entries: Detail – A separate journal entry is created for each revenue recognition schedule. Summary – Revenue recognition schedules are summarized for posting. The summaries are based on matching attributes. For details, see Using Summarized Revenue Recognition Journal Entries. When you use advanced revenue management (essentials), reclassification journal entries can also be summarized. For details, see Summarized Reclassification Journal Entries.
Default Revenue Recognition Journal Date to	Choose to set the default transaction date of revenue recognition journal entries when you open the Create Revenue Recognition Journal Entries page. Select one of the following: Last Day of Period – The date defaults to the last day of the period you select in the Posting period field. Current Date – The date defaults to the current date.
Default Deferred Revenue Reclassification Account	Select the deferred revenue account to use by default for revenue reclassification between deferred revenue and unbilled receivable accounts. NetSuite requires a default account to avoid errors in the month-end reclassification process. When the Advanced Revenue Management (Essentials) feature is enabled, this preference isn't required if the Unbilled Receivable Adjustment Journal Grouping preference is set to Element. You can also set a reclassification account in the Financial subtab of the customer record. The account set on the customer record overrides the system default. When you use the Revenue Commitment feature, you can also set the reclassification account on sales orders.
Use System Percentage of Completion for Schedules	Set this option to calculate project completion automatically, based on approved time logged against the project. If you clear this box, you must enter the percentage of project completion manually on project records for revenue and expense recognition. Revenue Recognition and Amortization: To override automatic calculation, enter a value in the Rev Rec Override Percent Complete field on the Financial subtab of the project. Use this same field to enter the percent complete when the preference isn't checked. Advanced Revenue Management (Essentials) ignores this preference except when you use Project Revenue Rules. Percent complete is automatically calculated based on approved time logged against the project. If you use Project Revenue Rules, you must check this box to calculate percent complete automatically. Advanced Revenue Management (Essentials): To bypass automatic calculation, enter values for Period and Cumulative Percent Complete in the Percent Complete Override subtab on the Financial subtab of the project. Use the same subtab to enter the percent complete for Project Revenue Rules when the preference isn't checked.

Field

Description

Create Revenue Recognition Journals in GL

Provides a choice for posting revenue recognition journal entries:

Detail – A separate journal entry is created for each revenue recognition schedule.
Summary – Revenue recognition schedules are summarized for posting. The summaries are based on matching attributes. For details, see Using Summarized Revenue Recognition Journal Entries.

When you use advanced revenue management (essentials), reclassification journal entries can also be summarized. For details, see Summarized Reclassification Journal Entries.

Default Revenue Recognition Journal Date to

Choose to set the default transaction date of revenue recognition journal entries when you open the Create Revenue Recognition Journal Entries page. Select one of the following:

Last Day of Period – The date defaults to the last day of the period you select in the Posting period field.
Current Date – The date defaults to the current date.

Default Deferred Revenue Reclassification Account

Select the deferred revenue account to use by default for revenue reclassification between deferred revenue and unbilled receivable accounts. NetSuite requires a default account to avoid errors in the month-end reclassification process.

When the Advanced Revenue Management (Essentials) feature is enabled, this preference isn't required if the Unbilled Receivable Adjustment Journal Grouping preference is set to Element.

You can also set a reclassification account in the Financial subtab of the customer record. The account set on the customer record overrides the system default.

When you use the Revenue Commitment feature, you can also set the reclassification account on sales orders.

Use System Percentage of Completion for Schedules

Set this option to calculate project completion automatically, based on approved time logged against the project. If you clear this box, you must enter the percentage of project completion manually on project records for revenue and expense recognition.

Revenue Recognition and Amortization: To override automatic calculation, enter a value in the Rev Rec Override Percent Complete field on the Financial subtab of the project. Use this same field to enter the percent complete when the preference isn't checked.

Advanced Revenue Management (Essentials) ignores this preference except when you use Project Revenue Rules. Percent complete is automatically calculated based on approved time logged against the project. If you use Project Revenue Rules, you must check this box to calculate percent complete automatically.

Advanced Revenue Management (Essentials): To bypass automatic calculation, enter values for Period and Cumulative Percent Complete in the Percent Complete Override subtab on the Financial subtab of the project. Use the same subtab to enter the percent complete for Project Revenue Rules when the preference isn't checked.

Classic Revenue Recognition Only

Field	Description
Default Foreign Currency Adjustment Revenue Account	Set the default revenue account to post foreign currency adjustments that result when exchange rates are different for billing and revenue postings. This account appears on customer records and on sales orders for the customer. You can override this default on the customer record or on a sales order.
Allow Users to Modify Revenue Recognition Schedule	Enable this option to allow users to make changes to existing revenue recognition schedules. You can change the revenue recognition amount on a schedule only by changing the schedule to generate the new amount. The schedule amount must always equal the line amount. Only amounts that haven't yet been recognized can be changed. Disable this option to prevent revenue recognition schedules from being changed after they're created.
Allow Users to Modify VSOE Values on Transactions	Set this option to allow users to make changes to VSOE prices on sales transactions. Only amounts that haven't yet been recognized can be changed. Also, the delivery status of an item can be changed until the item's revenue is recognized, regardless of this preference.
Prorate Revenue Recognition Dates For Partially Billed Sales Orders	This preference applies only to revenue recognition schedules that have Rev Rec Date Specified on Sales Order as the Term Source. The preference affects only the revenue recognition start and end dates for the invoices. Amounts and periods on the revenue recognition schedules are not affected. When this option is set, the revenue recognition start and end dates for invoices divide the period established by the sales order revenue recognition start and end dates proportionally for each partial invoice. This is the default. When this option isn't set, the revenue recognition start and end dates for each invoice are the same as the start and end dates on the sales order.
Adv. Billing: Use Sales Order Amount	Set this option to determine the source of the revenue amount when billing schedules and variable revenue recognition schedules are used. Check this box to recognize revenue based on the percent complete in relation to the sales order. For example, if the sales order amount is $1,000, the invoice amount is $500 and the project is 50% complete, then 50% of the sales order amount is recognized ($500). Clear this box to recognize revenue based on the invoice amount. For example, if the sales order amount is $1,000, the invoice amount is $500 and the project is 50% complete, then 50% of the invoice amount is recognized ($250).
Allow Revenue Commitments in Advance of Fulfillment	Set this option to allow the recognition of revenue with revenue commitments before the completed delivery of products or services on the sales order. This preference provides similar capability to the Invoice in Advance of Fulfillment preference, see Invoicing on the Order Management tab. Clear this box to restrict revenue recognition with a revenue commitment to the fulfilled items on a sales order.
Allow Revenue Commitment Reversals In Advance of Item Receipt	Set this option to allow full reversal of revenue previously recognized on a revenue commitment, before the receipt of products on the return authorization and their return to inventory. This preference provides similar capability to the Refund in Advance of Return preference, see Returns on the Order Management tab. Clear this box to restrict the reversal of revenue previously recognized on a revenue commitment, to the items received against a return authorization and returned to inventory.

Field

Description

Default Foreign Currency Adjustment Revenue Account

Set the default revenue account to post foreign currency adjustments that result when exchange rates are different for billing and revenue postings.

This account appears on customer records and on sales orders for the customer. You can override this default on the customer record or on a sales order.

Allow Users to Modify Revenue Recognition Schedule

Enable this option to allow users to make changes to existing revenue recognition schedules. You can change the revenue recognition amount on a schedule only by changing the schedule to generate the new amount. The schedule amount must always equal the line amount. Only amounts that haven't yet been recognized can be changed.

Disable this option to prevent revenue recognition schedules from being changed after they're created.

Allow Users to Modify VSOE Values on Transactions

Set this option to allow users to make changes to VSOE prices on sales transactions. Only amounts that haven't yet been recognized can be changed. Also, the delivery status of an item can be changed until the item's revenue is recognized, regardless of this preference.

Prorate Revenue Recognition Dates For Partially Billed Sales Orders

This preference applies only to revenue recognition schedules that have Rev Rec Date Specified on Sales Order as the Term Source. The preference affects only the revenue recognition start and end dates for the invoices. Amounts and periods on the revenue recognition schedules are not affected.

When this option is set, the revenue recognition start and end dates for invoices divide the period established by the sales order revenue recognition start and end dates proportionally for each partial invoice. This is the default.

When this option isn't set, the revenue recognition start and end dates for each invoice are the same as the start and end dates on the sales order.

Adv. Billing: Use Sales Order Amount

Set this option to determine the source of the revenue amount when billing schedules and variable revenue recognition schedules are used.

Check this box to recognize revenue based on the percent complete in relation to the sales order. For example, if the sales order amount is $1,000, the invoice amount is $500 and the project is 50% complete, then 50% of the sales order amount is recognized ($500).
Clear this box to recognize revenue based on the invoice amount. For example, if the sales order amount is $1,000, the invoice amount is $500 and the project is 50% complete, then 50% of the invoice amount is recognized ($250).

Allow Revenue Commitments in Advance of Fulfillment

Set this option to allow the recognition of revenue with revenue commitments before the completed delivery of products or services on the sales order. This preference provides similar capability to the Invoice in Advance of Fulfillment preference, see Invoicing on the Order Management tab.

Clear this box to restrict revenue recognition with a revenue commitment to the fulfilled items on a sales order.

Allow Revenue Commitment Reversals In Advance of Item Receipt

Set this option to allow full reversal of revenue previously recognized on a revenue commitment, before the receipt of products on the return authorization and their return to inventory. This preference provides similar capability to the Refund in Advance of Return preference, see Returns on the Order Management tab.

Clear this box to restrict the reversal of revenue previously recognized on a revenue commitment, to the items received against a return authorization and returned to inventory.

Advanced Revenue Management Only

The following preferences are available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.

Field	Description
Revenue Arrangement Update Frequency	Select how revenue arrangements are synchronized with sales transactions. When the Manual option is selected, go to Financial > Other Transactions > Update Revenue Arrangements and Revenue Recognition Plans, and click Update Revenue Arrangements to update revenue arrangements. For additional information, see Updating Revenue Arrangements. When you select Automatic, the system updates revenue arrangements every 3 hours.
Revenue Plan Update Frequency	Select how revenue recognition plans are synchronized with revenue arrangements. if you select Manual option, you'll need to click Update Revenue Plans on the revenue arrangement record (or go to Financial > Other Transactions > Update Revenue Arrangements and Revenue Recognition Plans) to update multiple revenue recognition plans. For more information, see Updating Revenue Recognition Plans. In NetSuite OneWorld, the subsidiary access of the logged in user determines which revenue elements have their plans updated. When you select Automatic, the system updates revenue plans every 3 hours. When revenue recognition plans are updated automatically, administrator permissions are used and all plans are updated regardless of subsidiary restrictions in NetSuite OneWorld.
Disable Creation of Forecast Plans	Set this option to suspend creation of revenue recognition forecast plans. When you clear the box, creation of forecast plans resumes. By default the box is clear. If you suspend forecast plan creation and resume it later, the generation of forecast plans may take longer than usual, and the Revenue Recognition Forecast reports omit forecasted lines.
Allow Gaps in Revenue Recognition Record Numbers	Set this option to allow gaps in record numbering for revenue elements and revenue recognition plans. Allowing gaps streamlines the process when executing large numbers of records. The box is automatically checked for new NetSuite implementations. If you clear the box, gaps in the record numbers occur only when revenue elements or revenue recognition plans are deleted.
Default Revenue Arrangement Form	Select the system form to use for revenue arrangements. The options are Standard Revenue Arrangement plus any custom forms created during implementation.
Default Revenue Recognition Journal Entry Form	Select the default journal entry form to use for revenue recognition journal entries. The options are Standard Journal Entry plus any custom journal entry forms created during implementation. If you use workflows for journal entry approval routing, you need to create a custom form for your system-generated revenue recognition journal entries and exclude it from your workflows. Then select that custom form as the value for this preference.
Default Reclassification Journal Entry Form	Select the default journal entry form to use for deferred revenue reclassification journal entries. The options are Standard Journal Entry plus any custom journal entry forms created during implementation. If you use workflows for journal entry approval routing, you need to create a custom form for your system-generated reclassification journal entries and exclude it from your workflows. Then select that custom form as the value for this preference.
Default Deferred Cost Journal Entry Form	Select the default journal entry form to use for the deferred cost journal entry. The options are the Standard Journal Entry plus any custom journal entry forms created during implementation. If you use workflows for journal entry approval routing, you need to create a custom form for this system-generated journal entry and exclude it from your workflows. Then select that custom form as the value for this preference.
Default Standard Revenue Recognition Rule	Select the default revenue recognition rule to use for items.
Default Catch Up Period	Select the default catch up period to use when a revenue plan that has been on hold resumes. The following are the available options: Blank – You must set the Catch Up Period on the revenue plan. Current Period – This is the default. First Open Period – The accounts receivable lock determines whether a period is closed.
Default Reforecast Method	Select the default Reforecast Method to use for revenue forecast rules. If you select Manual, the Recalculation Adjustment Period Offset field is required on revenue forecast rules unless you select a different option when you create the rule. For information about the Recalculation Adjustment Period Offset field, see Reforecast Method.
Enable Fair Value Range Checking	Set this option to add the Fair Value Range Checking Policy dropdown list and its dependent fields to the fair value price record. The Fair Value Range Checking Policy is also added to the item revenue category record. This preference is checked by default. For more information, see Creating the Fair Value Price List. This option is available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.
Use Sales Price as Fair Value	This option is set, if a matching record isn't found in the fair value price list, the allocation uses the sales price as the fair value. When the sales price is used as the fair value, the value of Is VSOE defaults to Yes in the revenue element. If the box isn't checked, you'll get an error message and must define the fair value for the item or enable this preference. This preference is available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.
Use Transaction Date as Revenue Arrangement Date	Set this option to use the source transaction date as the date for the revenue arrangement. When a project is attached to a source line item, the source transaction date is used, not the project date. If the source date is updated after the revenue arrangement is created, the revenue arrangement date doesn't change. The following source transactions are supported for this preference: Sales order Return authorization Sales invoice Credit memo Cash sale Cash refund Journal entry Intercompany journal entry Clear this box to use the system date when the revenue arrangement is created as the revenue arrangement date. This box is clear by default.
Use Subscription Billing Date as Revenue Arrangement Date	Set this option to use the Start Date in the subscription record header as the date for the revenue arrangement. If the subscription date is updated after the revenue arrangement is created, the revenue arrangement date doesn't change. Clear this box to use the system date when the revenue arrangement is created as the revenue arrangement date. This box is clear by default. This preference is available only when the SuiteBilling feature is also enabled.
Use Project Date as Revenue Arrangement Date	Set this option to use the source project date as the date for the revenue arrangement. This date is the Start Date in the Project Dates section of the project record. If the project date is updated after the revenue arrangement is created, the revenue arrangement date doesn't change. This preference applies to project revenue recognition configured for charge-based project billing, not to projects attached to transaction line items. For more information, see Project Revenue Recognition. Clear this box to use the system date when the revenue arrangement is created as the revenue arrangement date. This box is clear by default. This preference is available only when the Project Management feature is also enabled.
Require Invoice Approval When Revenue Plans Are Created on Billing	This preference applies only to revenue recognition plans that are created when the Create Revenue Plans On field is set to Billing. Set this option if you use invoice approval routing and don't want revenue recognition plans to be created unless the invoice is approved. Clear the box is you want plans to be created when the invoice is created, regardless of the invoice approval status. When you save your accounting preferences after turning this option on or off, the evaluation and any revenue plan updates occur in the background. If you have a high number of unapproved invoices when you change the preference, the processing could be slow.
Unbilled Receivable Adjustment Journal Grouping	Select the grouping for reclassification of unbilled receivables. The options are as follows: Element – The unbilled receivable adjustment is calculated for each revenue element. This is the default. Arrangement – The unbilled receivable adjustment is calculated for the revenue arrangement as a whole. Arrangement level adjustments to deferred revenue are posted to the deferred revenue account specified by the accounting preference Default Deferred Revenue Reclassification Account. Sub-Arrangement Group – The unbilled receivable adjustment is calculated for a group of revenue elements in an arrangement. The group is identified by the value of the Unbilled Receivable Group field on the revenue element. Revenue elements within the arrangement that have the same unbilled receivable group value are calculated together. For details, see Groupings for Unbilled Receivable Adjustment Journal Entries. This preference is book specific. When multi-book accounting is enabled, the preference appears on the accounting book record.
Unbilled Contract Asset Account	Select the account to use for the unbilled receivable adjustment during reclassification. The default is the system unbilled receivable account. You may select any account with an account type of other asset or other current asset.
Exclude Contract Assets From FX Reclassification	If you enabled Advanced Revenue Management (Essentials) after November 11, 2022, this preference is clear by default. If the box is clear, you can't check it. This accounting preference controls whether foreign currency revaluation for contract assets occurs during deferred revenue reclassification. When the box is clear, NetSuite includes foreign currency revaluation for the contract asset account in the reclassification process. The reclassification process uses the period-end currency exchange rate of the posting period to calculate contract assets. Reclassification creates an adjustment for foreign currency gain or loss on contract assets when a variance occurs. For information about the adjustment, see Foreign Currency Gain or Loss on Contract Asset. If you enabled Advanced Revenue Management (Essentials) before November 11, 2022, this preference is checked by default. When the box is checked, reclassification doesn't include foreign currency revaluation for the contract asset account. The system records the exchange rate used by the first unbilled receivable adjustment journal entry for each revenue element. This fixed exchange rate is used to calculate all subsequent unbilled receivable adjustment journal entries for the revenue element. Any unrealized gain or loss due to exchange rate fluctuation is included in the period-end foreign currency revaluation for the unbilled receivables account. Deferred revenue balances may remain for foreign currency transactions after all revenue is recognized. If you clear the box for this preference, you can't check it again.
Enable Contingent Revenue Handling	Set this option to enable contingent revenue handling. When enabled, fields are added to item records and revenue elements for contingent revenue. For more information, see Contingent Revenue Handling. This is a book-level preference. When multi-book accounting is enabled, this preference appears on the accounting book record, not on the Accounting Preferences page. This preference is available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.
Create and Maintain Revenue Element Upon Closed Order	This option is set by default. Closed sales orders and closed lines on sales orders are included in the revenue arrangement update process. If you create a sales order and then close it, NetSuite creates a revenue arrangement for that sales order. If you update a closed sales order, the revenue arrangement will update with the appropriate changes. Clear this box to exclude all updates to closed sales orders and closed lines on sales orders during the revenue arrangement update process. Whether closed lines are included in the revenue arrangement update process depends on when you close the line: If a sales order line is closed upon creation, a revenue element doesn't get generated for that sales order line. You must create journal entries to correct the deferred revenue. If a sales order line is open, billed, and then closed, the corresponding sales amount on the revenue element is updated to the invoice's quantity multiplied by the sales order's rate. If a sales order line or invoice line is updated after the sales order line is closed, its corresponding revenue element isn't updated. You must create journal entries to correct the deferred revenue.
Number of Short-Term Revenue Periods	Enter the number of short-term revenue periods to include in the Deferred Revenue Waterfall report. Integers from 0 through 52 inclusive are valid values. The default is 12. Adjustment periods are included in the period count.
Enable Advanced Cost Amortization	Set this option to enable the accrual and amortization of eligible sales costs associated with the contract. When the box is checked, you record eligible sales costs on the revenue arrangement and revenue elements. Amortization of these costs is tracked on the revenue recognition plan. For more information, see Advanced Cost Amortization.
Contract Acquisition Expense Account	This list is available only when the Enable Advanced Cost Amortization box is checked. Select the account to use for the default contract acquisition expense in revenue arrangements.
Contract Acquisition Deferred Expense Account	This list is available only when the Enable Advanced Cost Amortization box is checked. Select the account to use for the default contract acquisition deferred expense in revenue arrangements.
Contract Acquisition Expense Source Account	This list is available only when the Enable Advanced Cost Amortization box is checked. Select the account to use for the default contract acquisition expense source in revenue arrangements. When a value for this account appears in a revenue arrangement, the deferred cost journal entry credits this account instead of the Contract Acquisition Expense Account.

Field

Description

Revenue Arrangement Update Frequency

Select how revenue arrangements are synchronized with sales transactions.

When the Manual option is selected, go to Financial > Other Transactions > Update Revenue Arrangements and Revenue Recognition Plans, and click Update Revenue Arrangements to update revenue arrangements. For additional information, see Updating Revenue Arrangements.
When you select Automatic, the system updates revenue arrangements every 3 hours.

Revenue Plan Update Frequency

Select how revenue recognition plans are synchronized with revenue arrangements.

if you select Manual option, you'll need to click Update Revenue Plans on the revenue arrangement record (or go to Financial > Other Transactions > Update Revenue Arrangements and Revenue Recognition Plans) to update multiple revenue recognition plans. For more information, see Updating Revenue Recognition Plans.

In NetSuite OneWorld, the subsidiary access of the logged in user determines which revenue elements have their plans updated.
When you select Automatic, the system updates revenue plans every 3 hours.

When revenue recognition plans are updated automatically, administrator permissions are used and all plans are updated regardless of subsidiary restrictions in NetSuite OneWorld.

Disable Creation of Forecast Plans

Set this option to suspend creation of revenue recognition forecast plans. When you clear the box, creation of forecast plans resumes.

By default the box is clear. If you suspend forecast plan creation and resume it later, the generation of forecast plans may take longer than usual, and the Revenue Recognition Forecast reports omit forecasted lines.

Allow Gaps in Revenue Recognition Record Numbers

Set this option to allow gaps in record numbering for revenue elements and revenue recognition plans. Allowing gaps streamlines the process when executing large numbers of records. The box is automatically checked for new NetSuite implementations.

If you clear the box, gaps in the record numbers occur only when revenue elements or revenue recognition plans are deleted.

Default Revenue Arrangement Form

Select the system form to use for revenue arrangements. The options are Standard Revenue Arrangement plus any custom forms created during implementation.

Default Revenue Recognition Journal Entry Form

Select the default journal entry form to use for revenue recognition journal entries. The options are Standard Journal Entry plus any custom journal entry forms created during implementation.

If you use workflows for journal entry approval routing, you need to create a custom form for your system-generated revenue recognition journal entries and exclude it from your workflows. Then select that custom form as the value for this preference.

Default Reclassification Journal Entry Form

Select the default journal entry form to use for deferred revenue reclassification journal entries. The options are Standard Journal Entry plus any custom journal entry forms created during implementation.

If you use workflows for journal entry approval routing, you need to create a custom form for your system-generated reclassification journal entries and exclude it from your workflows. Then select that custom form as the value for this preference.

Default Deferred Cost Journal Entry Form

Select the default journal entry form to use for the deferred cost journal entry. The options are the Standard Journal Entry plus any custom journal entry forms created during implementation.

If you use workflows for journal entry approval routing, you need to create a custom form for this system-generated journal entry and exclude it from your workflows. Then select that custom form as the value for this preference.

Default Standard Revenue Recognition Rule

Select the default revenue recognition rule to use for items.

Default Catch Up Period

Select the default catch up period to use when a revenue plan that has been on hold resumes. The following are the available options:

Blank – You must set the Catch Up Period on the revenue plan.
Current Period – This is the default.
First Open Period – The accounts receivable lock determines whether a period is closed.

Default Reforecast Method

Select the default Reforecast Method to use for revenue forecast rules. If you select Manual, the Recalculation Adjustment Period Offset field is required on revenue forecast rules unless you select a different option when you create the rule. For information about the Recalculation Adjustment Period Offset field, see Reforecast Method.

Enable Fair Value Range Checking

Set this option to add the Fair Value Range Checking Policy dropdown list and its dependent fields to the fair value price record. The Fair Value Range Checking Policy is also added to the item revenue category record. This preference is checked by default. For more information, see Creating the Fair Value Price List.

This option is available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.

Use Sales Price as Fair Value

This option is set, if a matching record isn't found in the fair value price list, the allocation uses the sales price as the fair value. When the sales price is used as the fair value, the value of Is VSOE defaults to Yes in the revenue element. If the box isn't checked, you'll get an error message and must define the fair value for the item or enable this preference.

This preference is available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.

Use Transaction Date as Revenue Arrangement Date

Set this option to use the source transaction date as the date for the revenue arrangement. When a project is attached to a source line item, the source transaction date is used, not the project date. If the source date is updated after the revenue arrangement is created, the revenue arrangement date doesn't change. The following source transactions are supported for this preference:

Sales order
Return authorization
Sales invoice
Credit memo
Cash sale
Cash refund
Journal entry
Intercompany journal entry

Clear this box to use the system date when the revenue arrangement is created as the revenue arrangement date. This box is clear by default.

Use Subscription Billing Date as Revenue Arrangement Date

Set this option to use the Start Date in the subscription record header as the date for the revenue arrangement. If the subscription date is updated after the revenue arrangement is created, the revenue arrangement date doesn't change.

Clear this box to use the system date when the revenue arrangement is created as the revenue arrangement date. This box is clear by default.

This preference is available only when the SuiteBilling feature is also enabled.

Use Project Date as Revenue Arrangement Date

Set this option to use the source project date as the date for the revenue arrangement. This date is the Start Date in the Project Dates section of the project record. If the project date is updated after the revenue arrangement is created, the revenue arrangement date doesn't change. This preference applies to project revenue recognition configured for charge-based project billing, not to projects attached to transaction line items. For more information, see Project Revenue Recognition.

Clear this box to use the system date when the revenue arrangement is created as the revenue arrangement date. This box is clear by default.

This preference is available only when the Project Management feature is also enabled.

Require Invoice Approval When Revenue Plans Are Created on Billing

This preference applies only to revenue recognition plans that are created when the Create Revenue Plans On field is set to Billing.

Set this option if you use invoice approval routing and don't want revenue recognition plans to be created unless the invoice is approved. Clear the box is you want plans to be created when the invoice is created, regardless of the invoice approval status.

When you save your accounting preferences after turning this option on or off, the evaluation and any revenue plan updates occur in the background. If you have a high number of unapproved invoices when you change the preference, the processing could be slow.

Unbilled Receivable Adjustment Journal Grouping

Select the grouping for reclassification of unbilled receivables. The options are as follows:

Element – The unbilled receivable adjustment is calculated for each revenue element. This is the default.
Arrangement – The unbilled receivable adjustment is calculated for the revenue arrangement as a whole. Arrangement level adjustments to deferred revenue are posted to the deferred revenue account specified by the accounting preference Default Deferred Revenue Reclassification Account.
Sub-Arrangement Group – The unbilled receivable adjustment is calculated for a group of revenue elements in an arrangement. The group is identified by the value of the Unbilled Receivable Group field on the revenue element. Revenue elements within the arrangement that have the same unbilled receivable group value are calculated together.

For details, see Groupings for Unbilled Receivable Adjustment Journal Entries.

This preference is book specific. When multi-book accounting is enabled, the preference appears on the accounting book record.

Unbilled Contract Asset Account

Select the account to use for the unbilled receivable adjustment during reclassification. The default is the system unbilled receivable account. You may select any account with an account type of other asset or other current asset.

Exclude Contract Assets From FX Reclassification

If you enabled Advanced Revenue Management (Essentials) after November 11, 2022, this preference is clear by default. If the box is clear, you can't check it.

This accounting preference controls whether foreign currency revaluation for contract assets occurs during deferred revenue reclassification. When the box is clear, NetSuite includes foreign currency revaluation for the contract asset account in the reclassification process. The reclassification process uses the period-end currency exchange rate of the posting period to calculate contract assets. Reclassification creates an adjustment for foreign currency gain or loss on contract assets when a variance occurs. For information about the adjustment, see Foreign Currency Gain or Loss on Contract Asset.

If you enabled Advanced Revenue Management (Essentials) before November 11, 2022, this preference is checked by default. When the box is checked, reclassification doesn't include foreign currency revaluation for the contract asset account. The system records the exchange rate used by the first unbilled receivable adjustment journal entry for each revenue element. This fixed exchange rate is used to calculate all subsequent unbilled receivable adjustment journal entries for the revenue element. Any unrealized gain or loss due to exchange rate fluctuation is included in the period-end foreign currency revaluation for the unbilled receivables account. Deferred revenue balances may remain for foreign currency transactions after all revenue is recognized.

If you clear the box for this preference, you can't check it again.

Enable Contingent Revenue Handling

Set this option to enable contingent revenue handling. When enabled, fields are added to item records and revenue elements for contingent revenue. For more information, see Contingent Revenue Handling.

This is a book-level preference. When multi-book accounting is enabled, this preference appears on the accounting book record, not on the Accounting Preferences page.

This preference is available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.

Create and Maintain Revenue Element Upon Closed Order

This option is set by default. Closed sales orders and closed lines on sales orders are included in the revenue arrangement update process. If you create a sales order and then close it, NetSuite creates a revenue arrangement for that sales order. If you update a closed sales order, the revenue arrangement will update with the appropriate changes.

Clear this box to exclude all updates to closed sales orders and closed lines on sales orders during the revenue arrangement update process. Whether closed lines are included in the revenue arrangement update process depends on when you close the line:

If a sales order line is closed upon creation, a revenue element doesn't get generated for that sales order line. You must create journal entries to correct the deferred revenue.
If a sales order line is open, billed, and then closed, the corresponding sales amount on the revenue element is updated to the invoice's quantity multiplied by the sales order's rate.
If a sales order line or invoice line is updated after the sales order line is closed, its corresponding revenue element isn't updated. You must create journal entries to correct the deferred revenue.

Number of Short-Term Revenue Periods

Enter the number of short-term revenue periods to include in the Deferred Revenue Waterfall report. Integers from 0 through 52 inclusive are valid values. The default is 12. Adjustment periods are included in the period count.

Enable Advanced Cost Amortization

Set this option to enable the accrual and amortization of eligible sales costs associated with the contract. When the box is checked, you record eligible sales costs on the revenue arrangement and revenue elements. Amortization of these costs is tracked on the revenue recognition plan.

For more information, see Advanced Cost Amortization.

Contract Acquisition Expense Account

This list is available only when the Enable Advanced Cost Amortization box is checked.

Select the account to use for the default contract acquisition expense in revenue arrangements.

Contract Acquisition Deferred Expense Account

This list is available only when the Enable Advanced Cost Amortization box is checked.

Select the account to use for the default contract acquisition deferred expense in revenue arrangements.

Contract Acquisition Expense Source Account

This list is available only when the Enable Advanced Cost Amortization box is checked.

Select the account to use for the default contract acquisition expense source in revenue arrangements.

When a value for this account appears in a revenue arrangement, the deferred cost journal entry credits this account instead of the Contract Acquisition Expense Account.

Amortization

Field	Description
Allow Users to Modify Amortization Schedule	Set this option to allow users to make changes to the amortization schedule after it's initially created. Note: The schedule amount must always equal the line amount.
Allow Foreign Currency Amortization Schedules	Set this option to allow creation of amortization schedules using the foreign currency amounts instead of base currency amounts. For information about foreign currency amortization, see Foreign Currency Amortization. Note: This feature is only available in NetSuite U.K. Editions.
Default Amortization Journal Date to	Select the default transaction date of amortization journal entries when you open the Create Amortization Journal Entries page. The following are the available options: Last Day of Period – The date defaults to the last day of the period you select in the Posting period field. Current Date – The date defaults to the current date.
Default Amortization Journal Entry Form	Select the default journal entry form to use for amortization journal entries. The options are Standard Journal Entry plus any custom journal entry forms created during implementation.
Number of Short-Term Expense Periods	Enter the number of short-term expense periods to include in the Deferred Expense Waterfall report. Integers from 0 through 52 inclusive are valid values. The default is 12.

Field

Description

Allow Users to Modify Amortization Schedule

Set this option to allow users to make changes to the amortization schedule after it's initially created.

Note:

The schedule amount must always equal the line amount.

Allow Foreign Currency Amortization Schedules

Set this option to allow creation of amortization schedules using the foreign currency amounts instead of base currency amounts. For information about foreign currency amortization, see Foreign Currency Amortization.

Note:

This feature is only available in NetSuite U.K. Editions.

Default Amortization Journal Date to

Select the default transaction date of amortization journal entries when you open the Create Amortization Journal Entries page. The following are the available options:

Last Day of Period – The date defaults to the last day of the period you select in the Posting period field.
Current Date – The date defaults to the current date.

Default Amortization Journal Entry Form

Select the default journal entry form to use for amortization journal entries. The options are Standard Journal Entry plus any custom journal entry forms created during implementation.

Number of Short-Term Expense Periods

Enter the number of short-term expense periods to include in the Deferred Expense Waterfall report. Integers from 0 through 52 inclusive are valid values. The default is 12.

OneWorld

The following preferences are available when the Intercompany Time and Expense feature is enabled:

Field	Description
Intercompany Time	Set this option to Allow (default) to permit time transactions where the employee and customer have different subsidiaries. Set to Disallow to prohibit these transactions.
Intercompany Expenses	Set this option to Allow (default) to permit expenses transactions where the employee and customer have different subsidiaries. Set to Disallow to prohibit these transactions. You can set it to Allow and Adjust to enable automated intercompany adjustments.

Field

Description

Intercompany Time

Set this option to Allow (default) to permit time transactions where the employee and customer have different subsidiaries. Set to Disallow to prohibit these transactions.

Intercompany Expenses

Set this option to Allow (default) to permit expenses transactions where the employee and customer have different subsidiaries. Set to Disallow to prohibit these transactions. You can set it to Allow and Adjust to enable automated intercompany adjustments.

Budget

Field	Description
Enable Budget with Elimination Subsidiaries	Set this option to be able to create budgets for elimination subsidiaries.

Field

Description

Enable Budget with Elimination Subsidiaries

Set this option to be able to create budgets for elimination subsidiaries.

Exchange Rate Integration

The following options are available when working with multiple currencies.

Note:

Exchange rate integration works only with the default currency exchange rate type.

Field	Description
Rate Provider	Choose the integrated foreign exchange rate provider for this NetSuite account. Important: If you change your exchange rate provider, you must agree again to the Notice at Setup > Company > Enable Features > Company subtab. For more information about the Currency Exchange Rate Integration feature, see Currency Exchange Rate Integration.
Use Triangulation Calculation by NetSuite	Set this option to allow NetSuite to use cross currency triangulation to calculate the exchange rate for a transaction where the two home currencies are not available from the selected rate provider. When you check this box, three anchor currency fields appear in which you can specify intermediate currencies to be used in the triangulated calculation. See the following field description for additional details. For details about cross currency triangulation and how it works, see Triangulation Calculation. Important: Agree to the Notice, as required. NetSuite stores the user id and time and date stamp of account changes in system notes. If you don't want to agree to the Notice, click I Disagree. The Currency Exchange Rate Integration feature provides only those rates received directly from the specified rate provider. For more information about methods for obtaining exchange rates, see Methods for Obtaining Exchange Rates.
Primary Anchor Currency Secondary Anchor Currency Tertiary Anchor Currency	When you check the Use Triangulation Calculation by NetSuite box and agree to the Notice, three anchor currency fields appear. Use these fields to specify one, two, or three intermediate currencies for use in the triangulation calculation. When the two home currencies in a transaction are not available from the selected rate provider, anchor currencies, or intermediate currencies, are used to convert the source currency into the target currency. For example, CountryA wants to purchase items from CountryZ. CurrencyA and CurrencyZ are not available as standard currency pairs from the selected rate provider. However, both CurrencyA and CurrencyZ are available as standard pairs with CurrencyW. If you designate CurrencyW as your primary anchor currency, NetSuite sends a rate request to your provider for the pairs: CurrencyA/CurrencyW and CurrencyW/CurrencyZ. After NetSuite receives the exchange rates, cross currency triangulation produces the exchange rate to be used on the transaction between CountryA and CountryZ. If you designate three anchor currencies, you're instructing NetSuite to make three separate attempts to find exchange rates for currency pairs. For example, if the primary anchor currency isn't available, NetSuite tries with the secondary, and if that fails, NetSuite tries with the tertiary anchor currency. You can specify any ISO standard currency as an anchor currency. When you choose a currency in one list, that currency is unavailable in the other two lists. If you don't choose an anchor currency, NetSuite provides only direct and inverse exchange rates. For information about direct and inverse exchange rates, see Methods for Obtaining Exchange Rates. For more information about anchor currencies, see Anchor Currencies.

Field

Description

Rate Provider

Choose the integrated foreign exchange rate provider for this NetSuite account.

Important:

If you change your exchange rate provider, you must agree again to the Notice at Setup > Company > Enable Features > Company subtab.

For more information about the Currency Exchange Rate Integration feature, see Currency Exchange Rate Integration.

Use Triangulation Calculation by NetSuite

Set this option to allow NetSuite to use cross currency triangulation to calculate the exchange rate for a transaction where the two home currencies are not available from the selected rate provider.

When you check this box, three anchor currency fields appear in which you can specify intermediate currencies to be used in the triangulated calculation. See the following field description for additional details. For details about cross currency triangulation and how it works, see Triangulation Calculation.

Important:

Agree to the Notice, as required. NetSuite stores the user id and time and date stamp of account changes in system notes.

If you don't want to agree to the Notice, click I Disagree. The Currency Exchange Rate Integration feature provides only those rates received directly from the specified rate provider. For more information about methods for obtaining exchange rates, see Methods for Obtaining Exchange Rates.

Primary Anchor Currency

Secondary Anchor Currency

Tertiary Anchor Currency

When you check the Use Triangulation Calculation by NetSuite box and agree to the Notice, three anchor currency fields appear. Use these fields to specify one, two, or three intermediate currencies for use in the triangulation calculation.

When the two home currencies in a transaction are not available from the selected rate provider, anchor currencies, or intermediate currencies, are used to convert the source currency into the target currency. For example, CountryA wants to purchase items from CountryZ. CurrencyA and CurrencyZ are not available as standard currency pairs from the selected rate provider. However, both CurrencyA and CurrencyZ are available as standard pairs with CurrencyW. If you designate CurrencyW as your primary anchor currency, NetSuite sends a rate request to your provider for the pairs: CurrencyA/CurrencyW and CurrencyW/CurrencyZ. After NetSuite receives the exchange rates, cross currency triangulation produces the exchange rate to be used on the transaction between CountryA and CountryZ.

If you designate three anchor currencies, you're instructing NetSuite to make three separate attempts to find exchange rates for currency pairs. For example, if the primary anchor currency isn't available, NetSuite tries with the secondary, and if that fails, NetSuite tries with the tertiary anchor currency.

You can specify any ISO standard currency as an anchor currency.

When you choose a currency in one list, that currency is unavailable in the other two lists.

If you don't choose an anchor currency, NetSuite provides only direct and inverse exchange rates. For information about direct and inverse exchange rates, see Methods for Obtaining Exchange Rates. For more information about anchor currencies, see Anchor Currencies.

General Ledger

Accounts Receivable

Accounts Payable

Classifications

Revenue Recognition

Classic Revenue Recognition Only

Advanced Revenue Management Only

Amortization

OneWorld

Budget

Exchange Rate Integration

Related Topics: