To automate the creation of revenue arrangements after a sales order in NetSuite, leveraging the Advanced Revenue Management (ARM) feature is essential. Here’s a step-by-step guide to help you set this up:
1. Enable Advanced Revenue Management (ARM):
- Go to Setup > Company > Enable Features.
- Under the Accounting tab, ensure that Advanced Revenue Management (Essentials) is enabled.
2. Set Revenue Arrangement Update Frequency:
- Navigate to Setup > Accounting > Accounting Preferences.
- In the Revenue Recognition section, set the Revenue Arrangement Update Frequency to Automatic.
Additional Notes:
NetSuite creates revenue arrangements for the following types of transactions. If the transaction is subject to approval, the revenue arrangement is created only after the transaction is approved:
- Sales orders
- Invoices not created from sales orders
- Cash sales
- Cash refunds
- Return authorizations
- Credit memos