Configuring Subscription Items for Revenue Recognition
The information in this topic applies regardless of whether you check the Create Revenue Elements for Subscription Revisions accounting preference except where the accounting preference is clearly identified.
For more information about revenue recognition, see Revenue Recognition for SuiteBilling.
To configure subscription items for revenue recognition:
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To set up subscription items with different subscription line types, create an item record for each subscription type.
The preferred values for the subscription line types are in the following table.
Subscription Line Type
Revenue Recognition Rule
Create Revenue Plans On
Allocation Type
Subscription item fields for revenue recognition
Default Revenue Recognition Rule
Create Revenue Plans On
Allocation Type
Commit Plus Overage: Recognition based on usage
Default Usage
Subscription Events
Excluded
Commit Plus Overage: Even Amounts not dependent on usage
Default Fixed Recurring Fee
Revenue Arrangement Creation
Normal
Commit Plus Overage: Recognition based on usage with Allocations
Default Adjustable Recurring Fee
Subscription Events
Normal
With Create Revenue Elements for Subscription Revisions unchecked, there is no way to prospectively merge revenue recognition elements when allocating revenue.
Tip:When the Advanced Revenue Management (Essentials) feature is enabled, the Deferred Revenue Account field on the Accounting subtab defaults to the system-generated Deferred Revenue account. If you want to use a different account, be sure to select it.
For instructions, see Creating Items for Subscription Plans.
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On the Revenue Recognition/Amortization subtab, in the Advanced Revenue Recognition group, set the other required fields for revenue recognition as follows:
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Use the same value for the required Rev Rec Forecast Rule as for the Revenue Recognition Rule.
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Accept the defaults for fields not included in the following table.
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The preferred values for the subscription line types are in the following table.
Subscription Line Type
Revenue Recognition Rule
Create Revenue Plans On
Allocation Type
Recurring – Adjustable, when the
Create Revenue Elements for Subscription Revisions box is cleared
Default Adjustable Recurring Fee
Subscription Events
Normal
Recurring – Adjustable, when the
Create Revenue Elements for Subscription Revisions box is checked
Default Fixed Recurring Fee
Revenue Arrangement Creation
Normal
Recurring – Fixed
Default Fixed Recurring Fee
Revenue Arrangement Creation
Normal
One-Time
Default Fixed Recurring Fee
Revenue Arrangement Creation
Normal
Usage
Default Usage
Subscription Events
Exclude*
Prepaid
Default Usage
Subscription Events
Exclude*
Commit
Default Adjustable Recurring Fee, Default Fixed Recurring Fee, Default Usage
Subscription Events
Normal, Exclude*
Overage
Default Usage
Subscription Events
Exclude*
* For the usage service line type, set the Allocation Type to Exclude to avoid potential errors when revenue arrangements are merged. Revenue Allocation is supported for recurring, commit plus overage, and one-time subscriptions. For more information, see Creating Usage Records.
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On the Accounting subtab of the item record, select a Deferred Revenue Account.
Create Revenue Plans On is not a required field because you can set its value in the revenue element. Do not use Revenue Arrangement Creation as the value for Create Revenue Plans On when the rule uses subscription events as the start and end date sources.
The Default Adjustable Recurring Fee rule is an example of a rule with these start and end date sources. Revenue recognition plans that are created on subscription events do not include start and end dates. For more information about plans created on subscription events, see Calculations for Revenue Plans Created on Subscription Events.