Deferred Revenue Reclassification Enhancements
This release includes enhancements to the calculations for contract assets and netting entries. This enhancement only impacts reclassification calculations when the accounting preference Unbilled
Receivable Adjustment Journal Grouping is set to Arrangement or Sub-Arrangement Group. The new
computations apply to revenue arrangements with a combination of positive and negative elements. For more information about evaluating contract assets and liabilities, see the help topic Defining Assets and Liabilities. This enhancement prevents NetSuite from skipping the Net Contract Asset or Liability Per Element Adjustment. Previously, NetSuite skipped the Net Contract Asset or Liability per Element adjustment when the arrangement or sub-arrangement group included any of the following:
- A positive element and an element with different signs for recognized and billed amounts.
- A positive element and an element with negative recognized amounts and nonzero billed amounts.
- An element whose quantity and recognized amount have different signs. For more information, see the help topic Net Contract Asset or Liability per Element. This enhancement also includes updates to the foreign currency gain or loss on contract asset adjustment calculation. NetSuite only creates this adjustment when the accounting preference Exclude Contract Asset from FX Reclassification box is clear. Now, deferred revenue balances will zero for foreign currency transactions after all the revenue is recognized. For more information, see the help topic Foreign Currency Gain or Loss on Contract Asset.
Advanced Revenue Management Enablement Updates
The Advanced Revenue Management feature is now split into the following features:
- Advanced Revenue Management (Essentials) - This feature supports the use of revenue arrangements and plans to automate revenue deferral, recognition, forecasting, and auditing.
- Advanced Revenue Management (Revenue Allocation) - This feature is an add-on to Advanced Revenue Management (Essentials). This feature supports the use of fair value pricing, range checking, and fair value formulas to allocate revenue across several performance obligations. This update does not affect functionality for existing NetSuite accounts that have the Advanced Revenue
Management feature enabled. The Advanced Revenue Management (Essentials) and Advanced Revenue
Management (Revenue Allocation) features will be enabled automatically in these accounts. The Accounting Periods feature must be enabled as a prerequisite for Advanced Revenue Management (Essentials) and Advanced Revenue Management (Revenue Allocation). To enable the Accounting Periods feature, go to Setup > Company > Setup Tasks > Enable Features. Click the Accounting subtab, and in the Basic Features section, check the Accounting Periods box. To enable the Advanced Revenue Management (Essentials) feature, go to Setup > Company > Setup Tasks > Enable Features. Click the Accounting subtab, and in the Revenue Accounting section, check the Advanced Revenue Management (Essentials) box. The Advanced Revenue Management (Essentials) feature must be enabled as a prerequisite for Advanced Revenue Management (Revenue Allocation). To enable the Advanced Revenue Management (Revenue Allocation) feature, go to Setup > Company > Setup Tasks > Enable Features, and click the Accounting subtab. In the Revenue Accounting section, check the Advanced Revenue Management (Revenue Allocation) box. The following screenshot shows the Advanced Revenue Management (Essentials) and Advanced Revenue
Management (Revenue Allocation) features on the Enable Features page:
For more information, see the help topics Enabling the Advanced Revenue Management (Essentials) Feature and Enabling the Advanced Revenue Management (Revenue Allocation) Feature.