What is NetSuite Revenue Recognition?

Report revenue with confidence and accuracy

What is NetSuite Revenue Recognition?

NetSuite’s revenue recognition capabilities automate revenue scheduling, allocation and reporting. Create specific recognition rules for each product or service you offer, then easily link them to individual line items in customer contracts. Automatically recognise revenue based on predefined schedules or milestones in compliance with ASC 606, IFRS 15 and other standards.

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Recurring Revenue

Accounting for recurring revenue can be complex and time consuming. Now you can automate this process and manage revenue accurately and in accordance with the latest revenue recognition standards.

Compliance Made Easy

The combination of automated revenue recognition and real-time financial reporting gives companies an easy path to compliance, even with the most complex contracts.

Audit Ready

Revenue allocation decisions are frequently called into question by auditors — especially when there are inconsistencies between contracts. Avoid audit delays and extra fees by standardising the allocations process.

In terms of revenue and business operations, we’re eight times bigger now than when we first took on NetSuite, and it’s not projected to stop. NetSuite has provided a solution that grows with us.

Lisa Gemmell
Finance Director, Mons Royale

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NetSuite Revenue Recognition Benefits

Increase Efficiency. Save time and reduce reliance on spreadsheets by automating the complete revenue management process.
Close Faster. Standardised allocations, rules-based revenue schedules and easy exemption management reduce errors and allows accounting staff to focus on other closing tasks.
Improve Forecasting. Improve forecast accuracy with real-time updates on committed, deferred and recognised revenue.
Streamline Reporting. Automatically adjust deferred revenue and update contract balances based on actual billings and earned revenue totals.

NetSuite Revenue Recognition Features

Managing revenue with spreadsheets is no way to grow a business. NetSuite revenue recognition automates revenue forecasting, allocation, scheduling and reporting. Whether you sell products, services or both, recognise revenue over time or all at once, NetSuite can help you manage it effectively.

Allocations

Define Standalone Selling Prices using either a constant or dynamic formula and automatically allocate revenue across all contract elements by applying sophisticated, user-defined rules. Modify allocations prospectively or retrospectively to incorporate contract additions, changes or cancelations.

Rules & Schedules

Record revenue accurately by building performance obligations, project milestones and other revenue triggers into the revenue plan for each contract. NetSuite supports multiple revenue recognition approaches, including subscription, fulfillment (quantity or date), project completion (milestone or percentage) and time- and materials-based pricing models.

Revenue Plan Management

Modify revenue plans individually or in bulk — changes update totals automatically, saving time and avoiding manual errors. Updates can be applied to just the remaining periods within a plan, or the entire plan can be modified, with adjustments, such as catch ups or claw backs, included in the period changes are made.

Forecasting

Improve forecast accuracy with real-time data, and update projections as actual revenue is recognised. Forecast plans are created automatically for each contract using the associated revenue recognition schedule.

Reporting

Powerful reporting features adjust deferred revenue and update contract asset balances automatically based on actual billings and revenue totals.

Challenges NetSuite Revenue Recognition Solves

Process Complexity. Save time and minimise errors with an automated revenue management solution built into NetSuite.
Inconsistent Allocations. Reduce the risk of costly audits by standardising revenue allocation with predefined rules and standalone selling prices.
Reporting Errors. Record revenue accurately by building performance obligations, project milestones and other revenue triggers into the revenue plan for each contract.
Exception Management. Easily modify revenue plans as needed to account for project holds, delayed shipments or other issues that affect revenue recognition schedules.
Difficulty Forecasting. Improve forecast accuracy with real-time data and automatically update projections as actual revenue is recognised.

How Much Does NetSuite Revenue Recognition Cost?

Companies of every size, from pre-revenue startups to fast-growing businesses, have made the move to NetSuite. Looking for a better way to run your business but wondering about the cost?

Users subscribe to NetSuite for an annual license fee. Your license is made up of three main components: core platform, optional modules and the number of users. There is also a one-time implementation fee for the initial set up. As your business grows, you can easily activate new modules and add users — that’s the beauty of cloud software.

NetSuite Revenue Management is available as an add-on module.

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