Revenue Recognition and Advanced Revenue Management (Essentials)

The NetSuite order-to-revenue workflow begins with the sales order or invoice. The workflow specifically includes these transactions: sales order, invoice, cash sale, return authorization, credit memo, and cash refund. If you have been using classic revenue recognition features, order-to-revenue workflows that began before you enabled Advanced Revenue Management (Essentials) and disabled Advanced Revenue Management in Configuration Mode continue to use classic revenue recognition.

Any new order-to-revenue workflows created after ARM (Essentials) is enabled and ARM in Configuration Mode is disabled will use Advanced Revenue Management (Essentials). New order-to-revenue workflows include all new sales orders, even those generated from quotes that were created before Advanced Revenue Management (Essentials) was enabled and ARM in Configuration Mode was disabled.

You should keep track of the date you disabled ARM in Configuration Mode. You need to know that date to identify whether transactions later in the workflow use classic revenue recognition (classic) or advanced revenue recognition (ARM). Classic and ARM workflows are shown in the following diagram.

After Advanced Revenue Management (Essentials) is enabled and ARM in Configuration Mode is disabled, if you copy a sales order that uses the classic workflow, the new sales order uses the ARM workflow. When you copy invoices, the new invoice keeps the same workflow as the original. However, you can make a standalone copy of an invoice in a classic workflow. If Advanced Revenue Management (Essentials) has been enabled and ARM in Configuration Mode has been disabled, the new invoice uses the ARM workflow. The following diagram shows the choices available when you copy invoices.

The classic revenue recognition features are as follows:

• Revenue Recognition

• Revenue Commitments

• VSOE

• EITF 08-01 Revenue Recognition SuiteApp

• Sales Order Revenue Forecasting

The following topics describe the special behavior that is available only when classic revenue recognition and ARM are both enabled and search and reports considerations.

• Rev Rec Start and End Date Fields with Advanced Revenue Management (Essentials)

• Search Considerations for Advanced Revenue Management (Essentials)

• Reports for Classic Revenue Recognition and Advanced Revenue Management (Essentials)

General Notices