Updating VSOE Allocations and Delivery Status on a Transaction

You can click the Update VSOE button on the Accounting subtab to update the vendor-specific objective evidence (VSOE) allocation amount and delivery status on a transaction. VSOE prices can be changed only on transactions you have not yet billed. After billing, you can only change the delivery status.

For example, an order that you have not yet billed has only some items marked delivered. You can view the order and click Update VSOE to update the delivery status of the appropriate items. NetSuite recalculates the VSOE allocation based on the deferral settings and delivery status of all items on the order. You can also update the allocation amounts if you make your own calculations.

Note:

Update VSOE does not auto-calculate the allocation regardless of your transaction settings. To auto-calculate allocation, you must edit the transaction to make changes.

For example, a VSOE transaction bundle on an unbilled sales order includes the following:

Item	Invoice price	VSOE Price	Delivered?	Deferral
Installation Service 202	$1500	$1000	No	Defer Until Item Delivered
Software Product 101	$1500	$2000	Yes	Defer Until Item Delivered
Software Product 103	$2500	$2500	Yes	Defer Until Item Delivered
Total	$5500	$5500

As shown, the revenue to be recognized upon invoicing for the sale is $4500. This total is derived from the VSOE prices of items that qualify for revenue recognition. The Installation Service 202 item does not qualify for revenue recognition at this time because it is not marked delivered.

When you edit the sales order to mark the Installation Service 202 item as delivered, the allocated revenue for the item can be recognized.

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