1. Accounting
  2. Revenue and Expense Recognition
  3. Advanced Revenue Management (Essentials) and (Revenue Allocation)
  4. Revenue Recognition Plans
  5. Updating Revenue Recognition Plans

Updating Revenue Recognition Plans

Revenue recognition plans can be updated automatically or manually depending on the setting of the accounting preference Revenue Plan Update Frequency. When you select the automatic option, NetSuite updates revenue plans every 3 hours to incorporate changes to transactions and revenue arrangements that affect revenue plans. When revenue recognition plans are updated automatically, administrator permissions are used and all plans are updated regardless of subsidiary restrictions. If you use Multi-Book Accounting, the accounting book status is ignored.

You can update revenue plans manually between automatic updates. When you update revenue recognition plans manually, your subsidiary restrictions determine which revenue elements have their plans updated.

If the accounting preference Create and Maintain Revenue Element Upon Closed Order box is clear, updates to closed sales orders and closed sales order lines are discontinued. These discontinued updates include revenue recognition plans. If a sales order line is open, billed, and then closed, the corresponding sales amount on the revenue element is updated to the invoice's quantity multiplied by the sales order's rate. For more information, see Setting Advanced Revenue Management (Essentials) Preferences.

The Status subtab list on the Update Revenue Arrangements and Revenue Plans page displays all update processes run for the selected date range. Processes displayed include updates for revenue elements, revenue arrangements, actual revenue recognition plans, and forecast revenue recognition plans, whether the update was manual or automatic. Processes are run only when eligible sources are identified for the update. If no eligible sources are identified, no processes are run or listed.

You can use the accounting preference Disable Creation of Forecast Plans to skip the generation of revenue recognition forecast plans. This preference disables both automatic and manual forecast plan updates. For information, see Setting Advanced Revenue Management (Essentials) Preferences.

To update revenue plans manually:

  1. Go to Financial > Other Transactions > Update Revenue Arrangements and Revenue Recognition Plans.

    Revenue managers and revenue accountants can also use the Update Revenue Plans link on the Revenue dashboard or access the page through the Revenue menu. The Update Revenue Plans link begins the update process immediately, bypassing steps 2 and 3. If you want to use to the filters in step 2 before you begin the update process, use the Status link to access the page.

  2. Set the filters on the top of the page if desired.

    • Source From and Source To - These filters let you select a date range for the sources of revenue elements from which revenue plans are updated. By default, these fields are blank. With the default settings, all revenue plans are updated as needed, including those for sources with future dates.

    • Accounting Book - This filter appears only when the Multi-Book Accounting feature is enabled. When the filter is blank, revenue plans are updated as needed for all accounting books. When you select an accounting book, revenue plans are updated only for that accounting book.

    • Source Type - Filter by a type of source, such as transaction line or project revenue rule. When you select a type in this list, revenue plans are updated only for that source type.

      The source record options and feature dependencies are as follows:

      • All - No filter is applied. This option is the default.

      • Project Revenue Rule - This option is available only when Charge-Based Billing is enabled.

      • Subscription Line - This option is available only when SuiteBilling is enabled.

      • Third Party - This option is available only when the limited release Revenue Management Plug-In is enabled.

        When you select Third Party, the Revenue Management Plug-in determines which third-party source records are available for revenue plan updates. Filters on this page, including Source From and Source To, don't determine which third-party source records are returned by the plug-in.

        If source dates are selected, they may appear on the Criteria summary page for reference and may apply when updating existing revenue plans. However, they don't affect which third-party source records are returned by the plug-in for revenue plan creation. If date-based filtering is needed for Third Party source types, it must be handled outside the standard filter path, such as by a custom Suitelet, an integration, or logic in the Revenue Management Plug-in.

      • Transaction Line - This option is always available when the filter is displayed.

    • Source Record Type - Filter by the transaction type, such as sales order, cash sale, or invoice. Select the transaction type for which you want to update revenue plans. This field can be populated only if Transaction Line is selected in the Source Type field. Any other selection in the Source Type field disables this field.

    • Source Document Number - Enter the source record number. This may include prefixes, suffixes, and numeric values. For example, a sales order document number could be SO00001 or 15.

      If the number you enter is shared by multiple records eligible for revenue plan updates, all revenue plans associated with that number are updated. When this field is populated, revenue plans are updated only for the sources (transactions, project revenue rules, or subscriptions) with the entered source document number. This field is disabled if All is selected in the Source Type field.

      Note:

      When the source is a project, you must enter the project name instead of its document number.

    • Subsidiaries - Select one or more subsidiaries for which you want to update revenue plans. You can filter only by subsidiaries you have access to. Only the revenue plans associated with the selected subsidiaries (and their children, if the Include Children box is checked) are updated.

    • Include Children - This box is checked by default. When checked, revenue plans are updated for the selected subsidiaries and all their children. Clear this box if you want to filter only for the selected subsidiaries and none of their children.

    • Customer:Project - Select a customer or project for which you want to update revenue plans. Ensure that the selected customer or project aligns with the selected subsidiary. Select All to include all customers and projects.

      Only the revenue plans with sources (transactions, project revenue rules, or subscriptions) that contain the selected customer or project are updated. When the Source Document Number field is populated, this field is disabled because the associated record already contains a customer or project.

  3. Click Update Revenue Plans.

    The initial process, Revenue Plan Management, identifies the revenue recognition plans that the system needs to update. This process starts additional processes to update actual and forecast revenue plans as needed.

    Note:

    If you click Update Revenue Plans again with overlapping filter settings before an earlier process finishes, you may receive an error message. NetSuite checks for overlapping date ranges and matching filter values within the previous seven days to determine whether the update process can proceed.

  4. Click Refresh until Complete is displayed in the Submission Status column.

  5. Click the Complete link for a revenue plan process to open a page with a link to the completed records.

    If the revenue plan update process fails, the Message column includes an error count link to the error message.

    For the Revenue Plan Management process, Complete is text only, not a link.

The revenue arrangement record includes an Update Revenue Plans button. Click this button to update revenue plans immediately after you edit the arrangement. If the update can't be completed in a few seconds, the Process Status page opens. Click Refresh until the process is complete.

Revenue plans aren't created if dates are missing in revenue elements whose revenue recognition rules get start or end dates from the element. For more information about these revenue recognition rules, see Rev Rec Start Date Sources and Rev Rec End Date Sources and End Date Change Impact.

If a revenue recognition plan update fails, the Revenue Plan Status for the related revenue arrangement and revenue element is Plan Failed. Revenue plan messages are included on the Revenue Arrangement Message subtab of revenue arrangements. The process is Planning.

If you use charge-based billing on your projects, you're using time as the billing base and also use the As Charged revenue rule while having the Planned Work feature enabled. Having planned time entries on respective projects is essential for this combination to work properly. Planned time entries (created from project task assignments) are used by the charge process to create forecast charges. The forecast charges are also used by the revenue recognition process and work as a cap for recognizing actual revenue. Forecast charges are critical for recognizing actual revenue. If there is no planned time, no forecast charges are created, and subsequently, no actual revenue can be recognized.

Related Topics

General Notices