A customer wants to apply the Advanced Revenue Management (ARM) feature selectively to specific subsidiaries. They need transactions to directly impact revenue accounts rather than being deferred.
While the ARM feature is enabled at the account (company) level and there is no subsidiary-specific setting to disable or enable ARM, you can control this behavior at the item level. Here’s how to do it:
- Open Item Record:
- Navigate to your item list and either open an existing item or create a new one.
- Click Edit on the selected item.
- Configure Revenue Recognition:
- Go to the Revenue Recognition/Amortization tab.
- Field: Direct Revenue Posting
- Check the box to enable direct revenue posting.
- Save the Item:
- Click Save.
Note:
- After configuring the item, you’ll notice that the Deferred Revenue Account under the Accounting tab is grayed out. This means it is no longer used for the item.
- To verify, create a sample transaction (such as a Sales Order or Invoice) using the configured item. Once saved, the GL impact should directly hit the revenue or sales account.
Steps to Test:
- Create or Edit Item Record:
- Follow the above steps to mark the Direct Revenue Posting checkbox.
- Create a Sample Transaction:
- Use the item in a Sales Order or Invoice.
- Save the transaction.
- Verify GL Impact:
- Check the GL impact of the transaction to ensure it directly affects the revenue account.
By following these steps, you can control the application of ARM at the item level, allowing for flexibility in how revenue is recognized across different subsidiaries. This setup ensures that transactions involving specific items will hit the revenue accounts directly as desired.