Optional Preferences for SuiteBilling

To set optional preferences for subscription creation and management:

1. Go to Setup > Accounting > Accounting Preferences.

2. On the Classifications subtab, check the box for each preference that you want to set:

   • Make Classes Mandatory

   • Make Departments Mandatory

   • Make Locations Mandatory

   • Allow Per-Line Classes

   • Allow Per-Line Departments

   • Allow Per-Line Locations

   If you check the Make Classes Mandatory, Make Departments Mandatory, or Make Locations Mandatory preferences, these fields are required while you are creating the subscription or subscription line. If any of the Allow Per-Line preferences are checked, the line-level value is used in revenue reporting. If Allow Per-Line preferences are cleared, the class, department, and location values on the subscription line record are sourced from the billing account. For more information about the Class, Department, and Location, see Class, Department, and Location Fields on Subscription Lines.

3. Go to Setup > Accounting > Invoicing Preferences.

4. On the Subscription Management subtab:

   Note:

   The Subscription Management subtab does not appear until after you enable SuiteBilling.

   1. Check the box for each preference that you want to set:

      • When Sales Order Gets Approved, Auto-Change Subscription Status to ‘Pending Activation’. This moves subscription lines in Draft status to Pending Activation status if the subscription is saved on a sales order and the order gets approved.

      • First Activation Change Order Creation Sets the Subscription Start Date. With this preference enabled, the start date and activation date need to be the same. Otherwise, the start date changes to the line item activation date.

      • Request Credit Memo for Off-Cycle Change Orders. This preference automatically creates credit memos when doing off-cycle invoicing.

      • Create Delta Charges for Changes to Invoiced Service Periods. If this preference is not visible in your account, contact your NetSuite account representative or NetSuite Customer Support. There is no additional cost to activate delta charges.

        When set, the global invoicing preference Create Delta Charges for Changes to Invoiced Service Periods can generate a delta charge. A delta charge occurs when changes to invoiced service periods result in a change to the amount the customer owes. The amount of the delta charge is the difference between the invoiced amount and the new amount for the service period. If there is a change in quantity, the quantity of the delta charge will be the difference between the invoiced quantity and the new quantity for the service period. If there is no change in quantity, the quantity will be the new quantity for the service period.

        Note:

        You cannot turn off delta charges after the first delta charge is created.

        To see how to set this preference, view the video:

      To learn SuiteBilling change order fundamentals, see SuiteBilling Change Orders.

   2. To align subscription charges with the subscription start date, check the Align Charge Amounts with Subscription box.

      When you activate a subscription, its current preference setting dictates the subscription charge pattern.

      When you check the Align Charge Amounts with Subscription preference, and then activate subscriptions:

      • All lines within a single activated subscription have a charge pattern aligned with the subscription header start date instead of its bill dates.

      • Multiple-year subscriptions with multiple charge frequencies, such as monthly, quarterly, and annual, recur based on the subscription start date for better alignment of charge periods.

      The subscription charge patterns of the Align Charge Amounts with Subscription preference are shown in the following figure.

      

      Existing subscriptions activated before setting this preference may display the original recurrence pattern.

      If the Align Charge Amounts with Subscription preference is cleared, charges align with the billing schedule of the billing account. When this preference is set, charges align the recurrence start date with the subscription start date. When the preference is set but you have not selected a billing account for the subscription, the recurrence start date is the subscription start date. When the subscription has no billing but Align Charge Amounts with Subscription is cleared, the start date is not calculated until you save, when you must select a price book.

      When you select a billing account for the subscription and click Save, the recurrence start date updates to align with the billing account recurrence pattern. This changes the ratable events that are generated in Draft mode, which may affect the Sales Order synchronization or other processes that depend on the ratable event amounts. When you select a billing account, rating runs.

      If Align Charge Amounts with Subscription is cleared, the total contract value may change when you select a billing account on the subscription.

   3. To automatically extend the Estimated Revenue Recognition End Date for evergreen subscriptions, enter a value between 1 and 120 for the following preference:

      Months To Extend Estimated Revenue Recognition End Date

      Tip:

      Set this preference according to your billing schedule.

      • If you bill evergreen subscriptions monthly, set this preference to 1 or greater.

      • If you bill evergreen subscriptions quarterly, set this preference to 3 or greater.

      • If you bill evergreen subscriptions annually, set this preference to 12 or greater.

      Evergreen subscriptions do not have an end date unless there is a Terminate change order for the line. For all other evergreen subscriptions, the Estimated Revenue Recommended End Date field on the subscription header is used as the end date.

      For more information about revenue recognition, see Revenue Recognition for SuiteBilling.

   4. If you entered a value for the Months To Extend Estimated Revenue Recognition End Date preference, you also must enter a value between 1 and 120 for the following preference:

      Months Prior To Estimated Revenue Recognition End Date To Initiate Auto-Extend

5. To ensure that all days are prorated to the same amount regardless of the number of days in the year, check the Exclude February 29 When Prorating by Days or Months preference.

   To see how to set this preference, view the video:

6. To remove a one-day charge from a subscription line item, check the Default Terminations Effective at Start of Day preference.

7. To use the line item location set on the subscription line as the source for the invoice, credit memo, and cash sale location line item values, check the Use the Location from the Subscription Record on Line Items for Invoices, Credit Memos, and Cash Sales preference. If the subscription line item location is empty, the location from the employee record is used as the invoice line item location.

8. Click Save.

Example: A subscription with a 12–month term and charge frequency set to monthly is activated on January 15. Each item represents one month of service with a charge to the customer of $100 US.

If you clear the Prorate Start Date and Prorate End Date boxes, the customer is billed the full monthly cost for January.

If you check the Prorate Start Date and Prorate End Date boxes, the charge for the month of January is reduced to $54.84. This reduced charge is based on the number of service days the customer received. If the line is terminated prior to 12/31/2019, the end charge is also not a full charge.

To set the optional accounting preference for Advanced Revenue Management:

1. Go to Setup > Accounting > Accounting Preferences.

2. Click the General subtab.

3. On the Subscription Management section, check the Create Revenue Elements for Subscription Revisions box.

   Warning:

   After you set the Create Revenue Elements for Subscription Revisions preference, you cannot change it.

4. Click Save.