This blog is part 1 in a four-part series that we will be discussing setting up the Advance Revenue Management or ARM. Part 1 will provide an overview of enabling of the Advance Revenue Management feature in NetSuite.
In this part, we will discuss the following:
I suggest you watch the video. It’s easier to understand if you are a visual/audio learner. The content below is the same as the video. It’s for those who learn by reading.
Before we go into the details for part 1, you need to enable the accounting periods feature as a pre-requisite for Advance Revenue Management.
When you enable Advanced Revenue Management, NetSuite automatically adds the following system accounts:
- Deferred Revenue
- Unbilled Receivable (already exists if you have enabled the Revenue Commitments feature)
- Revenue Arrangement (a non-posting account)
When Advanced Revenue Management is enabled, revenue for all items is deferred until revenue recognition journal entries are created. Item records use the system–generated deferred revenue account and the Default Standard revenue recognition rule by default. You must select a value for the Create Revenue Plans On field on the item record to finish item configuration for Advanced Revenue Management.
If you have used the following features in the past, they will continue to function for source documents created prior to the time you enable Advanced Revenue Management.
New source documents will be processed using Advanced Revenue Management:
- Revenue Recognition
- Revenue Commitments
- EITF 08-01 Revenue Recognition SuiteApp
- Sales Order Revenue Forecasting
To use Advanced Revenue Management, the Accounting Periods feature must be enabled because accounting periods are used for revenue recognition plans.
When you enable the Advanced Revenue Management feature, it cannot be disabled.
To enable Advanced Revenue Management:
Step 1: Go to Setup → Company → Setup Tasks → Enable Features
Step 2: Click the Accounting subtab and tick Advanced Revenue Management.
Step 3: Make sure that Accounting Periods is also ticked.
Step 4: Click Save.
You just learned how to enable the Advance Revenue Management (ARM) feature. To quickly go back to the sections of this tutorial, click on the links below.