In the world of accrual accounting, few concepts are as crucial—and often misunderstood—as deferred revenue. Also known as unearned revenue, it represents a company’s obligation to deliver goods or services for which it has already received payment. Though it may feel like income, deferred revenue is not yet earned and treating it as such prematurely… Continue reading Understanding Deferred Revenue: The Liability Behind the Advance
Tag: arm
ARM: Difference between Accrued Revenue & Deferred Revenue
Accrued revenue refers to income earned but not yet billed or received. It typically arises when a company delivers goods or services but hasn’t yet invoiced the customer by the end of the accounting period. 🔹 Key Characteristics: Revenue is recognized before cash is received. Typically recorded as a receivable on the balance sheet. Common… Continue reading ARM: Difference between Accrued Revenue & Deferred Revenue
4 ways NetSuite ARM is changing revenue recognition
Managing finances and staying compliant with ever-changing ASC 606 regulations can be overwhelming, especially during business volatility. Accurate revenue recognition is essential to safeguard your business and ensure financial security. NetSuite’s Advanced Revenue Management (ARM) module streamlines compliance and revenue recognition, allowing you to: Recognize revenue at fixed or variable intervals effortlessly. Adapt to ASC 606 requirements… Continue reading 4 ways NetSuite ARM is changing revenue recognition
Key Features and Benfits of ARM (Advanced Revenue Management)
Key Features of Advanced Revenue Management: Automated Revenue Recognition: ARM automatically recognizes revenue over time based on predefined rules, reducing manual adjustments and ensuring accurate financial reporting. Revenue Allocation: The module enables automated revenue allocation across multiple performance obligations, a key requirement under standards like ASC 606. Flexible Revenue Forecasting: ARM provides revenue forecasting capabilities… Continue reading Key Features and Benfits of ARM (Advanced Revenue Management)
Automating Revenue Arrangements in NetSuite Using Advanced Revenue Management (ARM)
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… Continue reading Automating Revenue Arrangements in NetSuite Using Advanced Revenue Management (ARM)
Resolving the “No Line Was Found to Apply a Discount to During Allocation” Error in Revenue Arrangements
Users encounter an error when attempting to update a revenue arrangement: “No line was found to apply a discount to during allocation.” Additionally, the Compliant checkbox remains unmarked. Solution: Understand the Compliant Checkbox: The Compliant checkbox indicates that revenue is allocated between revenue elements. It is related to the “Transaction Is Allocation Bundle” setting. Verify… Continue reading Resolving the “No Line Was Found to Apply a Discount to During Allocation” Error in Revenue Arrangements
Why Classifications from Sales Order Are Not Pulled into Revenue Arrangement
A user notices that the system does not pull the Classifications (Class, Department, Location) set on the Sales Order into the Revenue Arrangement. This issue can lead to missing or incorrect classifications on Revenue Elements and, subsequently, on Revenue Recognition Journal Entries. The behavior depends on where the Classifications are set and how they are… Continue reading Why Classifications from Sales Order Are Not Pulled into Revenue Arrangement
Resolving ‘Invalid Item Reference Key’ Error in Revenue Arrangement and Revenue Plans Update
While updating revenue elements on the Update of Revenue Arrangement and Revenue Plans page, an error message stating ‘Invalid item reference key XXXX for subsidiary X’ is encountered. Solution: Identify the Problematic Item: Navigate to your list of items. Locate the item with the Internal ID that matches the Reference Key mentioned in the error… Continue reading Resolving ‘Invalid Item Reference Key’ Error in Revenue Arrangement and Revenue Plans Update
Applying Advanced Revenue Management to Specific Subsidiaries
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… Continue reading Applying Advanced Revenue Management to Specific Subsidiaries
Standard Revenue Management Reports | ARM
Standard Revenue management reports: – • Deferred Revenue by Customer or Item Report • Revenue by Customer or Item Report • Billing and Revenue Summary Report • Deferred Revenue Rollforward Report • Deferred Revenue Waterfall • Revenue Recognition Forecast • Deferred Revenue Reclassification Activity Report