Project Revenue Rules
This topic is about recognizing revenue directly from charge-based projects. For information about recognizing revenue for projects that are attached to line items in sales transactions, see Advanced Revenue Management (Essentials) for Projects.
Project Revenue Rules is a subtab on the Financial subtab. Project revenue rules rely on charge rules to determine the amount of revenue to be distributed. Choose a type of project revenue rule to create based on how you want the system to recognize the revenue.
The Project Revenue Rules subtab does not appear on the Financial subtab when the Advanced Revenue Management in Configuration Mode feature is enabled. For more information, see Advanced Revenue Management in Configuration Mode.
Use as charged rules if you intend to recognize revenue as it is incurred, regardless of your invoicing schedule. As charged rules are particularly relevant for time and materials style projects which do not have fixed total amounts and are billed in hourly or daily rates. As charged project revenue rules recognize revenue from actual project charge dates and revenue values. Use as charged rules if you need to create an invoice for a long-term project and want to add more data for past charges.
As charged rules are not suitable or adding the data regularly, for example, on a monthly basis. You should use as charged project revenue rules for the following project billing types:
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Standard Setup, Time and Materials
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Fixed Bid, Progress Billing
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Fixed Bid, Fixed Date
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Fixed Bid, Milestone Billing
The following table shows how the different types of project revenue rules and charge rules work and interact with each other.
Project Revenue Rule |
Based On |
Trigger |
Time-based Charge Rule |
Fixed Date Charge Rule |
Milestone Charge Rule |
Progress Charge Rule |
Percent complete |
Duration-based project completeness or Percent Complete Override subtab |
Duration or time |
Use if there is a fixed component or cap that needs to be incorporated |
Use if the duration-based percent complete represents the value or you want to use the Percent Complete Override subtab |
Use if the duration-based percent complete represents the value or you want to use the Percent Complete Override subtab |
Use as charged if possible |
As charged |
Amounts as they are charged |
Charges |
Use if the billed amounts represent actual revenue value |
Use if the billed amounts and charge dates represent actual revenue value |
Use if the billed amounts and charge dates represent actual revenue value |
|
Fixed amount |
Defined schedule |
Dates or milestones |
Use if you calculate amounts outside NetSuite |
Use if you calculate amounts outside NetSuite |
Use if you calculate amounts outside NetSuite |
Use if you calculate amounts outside NetSuite |
Expense-based charge rules are not available to use with Project Revenue Recognition.
Revenue is recognized during the accounting period in which the information is entered into NetSuite. Be aware that a delay in entering information may cause revenue to be recognized later than expected.
For instructions on how to create each of project revenue rules, see the following procedures: