Issue:
A revenue recognition discrepancy was identified in NetSuite for certain sales orders. Changes made to the quantity and rate of specific items were not properly reflected, causing NetSuite to recognize revenue based on the original entry instead of the updated values.
Cause:
This happened because the Revenue Arrangement and Revenue Plan were created before the sales order was updated. Since the revenue recognition journal entry was generated based on the initial plan, NetSuite continued to use the old values. NetSuite does not automatically update journal entries when changes are made to the revenue plan, leading to incorrect revenue recognition.
Solution:
To correct this, we need to delete the incorrect journal entry since NetSuite does not update it automatically. After deleting it, we can update the revenue plan with the correct quantity and rate. Finally, we generate a new revenue recognition journal entry, ensuring the correct revenue amount is recorded in alignment with the updated sales order.