Configuring Subscription Items for Revenue Recognition
The information in this topic applies whether or not 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, you can't prospectively merge revenue recognition elements when allocating revenue.
Tip:With the Advanced Revenue Management (Essentials) feature enabled, the Deferred Revenue Account field on the Accounting subtab defaults to the system-generated deferred revenue account. 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 required fields for revenue recognition as follows:
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Match the Rev Rec Forecast Rule and Revenue Recognition Rule values.
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Leave the defaults for the fields that aren't 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 usage service lines, set the Allocation Type to Exclude to prevent errors when merging revenue arrangements. You can allocate revenue 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.
You don't need to fill Create Revenue Plans On because you can also set it in the revenue element. Avoid using Revenue Arrangement Creation for Create Revenue Plans On when the rule uses subscription events for date sources.
The Default Adjustable Recurring Fee rule is a rule with these start and end date sources. Revenue recognition plans that are created on subscription events don't include start and end dates. For more information about plans created on subscription events, see Calculations for Revenue Plans Created on Subscription Events.
To learn how to set up one-time based service items for subscription billing with advanced revenue management, view the video:
To learn how to set up usage-based service items for subscription billing with advanced revenue management, view the video: