Revenue Recognition

Summary

NetSuite Advanced Revenue Management (Netsuite ARM) provides a full set of recognition rules and configuration parameters, which allow businesses to recognise their revenue when it is actually earned instead of when an invoice is generated. For services and SaaS companies, and for businesses using projects, this feature enables the recognition of revenue over multiple periods, based on specific rules and triggering events, including the transaction date, pre-defined start and end dates, project completion percentage, etc.

Furthermore, the solution includes a series of standard reports that allow you to have a clear overview of your deferred revenue, your actual revenue and your forecasted revenue in a few simple clicks.

The ARM functionality covers the vast majority of the scenarios your business may encounter, whether you are using sales orders and return authorisations or book your invoices and credit memos directly. From SRP to multi-currency transactions, unbilled orders and multi-book accounting, NetSuite’s ARM supports all businesses and all industries.

Thanks to its versatility, this module is a real time-saver, which helps accountants focus on exceptions while standard scenarios are fully automated, and which provides financial controllers with reliable and real-time financial reports in a matter of minutes.

Features

• Fully automated revenue recognition over multiple accounting periods, with a flexible set of rules and parameters to match any business model.
• Support of SRP, multiple currencies, multiple accounting books and revenue allocation, as well as automation of unbilled orders management via reclassification journal entries.
• Compliance with multiple accounting standards (ASC606, IFRS15, etc.), thanks to the powerful integrated allocation calculator, among other things.