Billing a VSOE Transaction

Important:

After a vendor-specific objective evidence (VSOE) bundle is invoiced, the allocation amount cannot change. For example, you enter a sales order with three items. Only two of the items are marked delivered for VSOE and are eligible to have their allocated value recognized. After invoicing the sales order, you mark the third item delivered for VSOE. Marking the item delivered after invoicing does not impact the VSOE allocation. None of the VSOE settings impact the VSOE allocation after the order has been invoiced. Only the delivered flag may be checked after invoicing to start the revenue recognition process.

After values are allocated and billed to the customer, the VSOE allocation will not change. The delivery status at the time of billing and subsequent updates determine when the revenue recognition schedule is created and revenue recognized.

In this example, you bill a sales order marked Is VSOE Bundle. The order includes the following:

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

NetSuite does not create the revenue recognition schedule for the Installation Service 202 item at the time of billing because it is not delivered. When Installation Service 202 is marked Delivered, the revenue recognition schedule is created.

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