Revenue recognition refers to deferring revenue for recognition in future time periods independently
from billing customers and receiving payments .
The main features of the Legacy Revenue Recognition are : –
a) Revenue Recognition :
When this feature is enabled, you create revenue recognition templates that use standard or custom
recognition methods and associate these templates with items.
b) Revenue Commitments :
When this feature is enabled, you can recognize revenue before issuing an invoice to a customer.
c) VSOE :
This feature enables you to accurately recognize revenue to meet the requirements of vendor-specific
objective evidence (VSOE) accounting standards.
d) Sales Order Revenue Forecasting:
This feature enables you to forecast revenue using sales orders and return authorizations, so that
forecast amounts include billed, unbilled, and deferred revenues. This method can provide a more
complete forecast.
Legacy revenue recognition features are not available in new NetSuite implementations but it is still supported for customers who previously enabled it. NetSuite currently offers the Advanced Revenue Management feature to automate revenue deferral and recognition.