In Advanced Revenue Management module, revenue arrangements are created based on the
configurations specified in the accounting subtab on item records.
Configuring revenue recognition attributes on the Item records is critical to process the revenue
recognition workflow starting from creating revenue arrangements to revenue plans, journal entries to
recognize revenue.
The following Item types are supported by the revenue management module.
• Assembly including Serialized and Lot numbered
• Kit/Package
• Inventory including Serialized and Lot Numbered
• Non Inventory for Sale/Resale
• Other Charge for Sale/Resale
• Service for Sale/Resale
Non Inventory and Service for Sale items are set up in the system.
Steps
1) Navigate to Lists > Accounting > Items > New (Administrator).
2) Select Non-Inventory or Service Item for Sale.
3) Enter an Item Name/Number.
4) Navigate to the Accounting subtab.
5) Select the Income Account.
6) Confirm the default Deferred Revenue Account or select a new one. The Deferred Revenue
Account defaults based on your “Default Deferred Revenue Account” accounting preference.
7) Navigate to the Revenue Recognition/Amortization subtab.
8) Select the Revenue Recognition Rule to use by default for this item in a revenue arrangement.
9) Select the same rule as the Rev Rec Forecast Rule.
10) Select the Create Revenue Plans On. This defines the event that triggers creation of revenue
Quick Reference Guide
• Revenue Arrangement Creation – Revenue plans are created as soon as the revenue
arrangement has been created.
• Billing – Revenue plans are created after the sales order is billed. Plans are also generated
from stand-alone cash sales, invoices, credit memos, and cash refunds.
• Fulfillment – Revenue Plans are created after the sales order is fulfilled. This option is
available only when the Advanced Shipping feature is enabled.
• Project Progress -This option is available only when the Projects and Project Management
features are enabled.