Creating Revenue Recognition Templates

Note:

This topic applies to the Revenue Recognition feature. Revenue Recognition is the key feature of NetSuite classic revenue recognition. Classic revenue recognition features are not available in new NetSuite implementations. Classic revenue recognition (also called legacy revenue recognition) is still supported for customers who previously enabled it. NetSuite currently offers the Advanced Revenue Management (Essentials) feature to automate revenue deferral and recognition. For the equivalent information for Advanced Revenue Management (Essentials), see Revenue Recognition Rules.

A revenue recognition template defines the terms of the revenue recognition schedule created by the sale of an item.

After Revenue Recognition has been enabled, you can create multiple templates to define revenue deferment terms. These templates are used to generate revenue recognition schedules that determine how revenue from associated items should be posted.

For each template, you can:

Select from a choice of standard terms or define your own custom terms
Set the time period over which recognition occurs
Define an offset to delay the start of recognition
Set up an initial amount to be recognized

For details and examples of the choices available for templates, see Understanding Revenue Recognition Template Terms.

For steps for creating a new template, see Defining a Revenue Recognition Template.

After templates have been created, you can associate them with items. The revenue recognition template you select on the item record becomes the default template when the item is sold. You also can associate a revenue recognition template with an item for a specific transaction only by selecting it on the transaction item line. See Associating Revenue Recognition Templates with Items.

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