This topic applies to the Revenue Recognition feature. Revenue Recognition is the key feature of NetSuite classic revenue recognition. Classic revenue recognition features are not available in new NetSuite implementations. Classic revenue recognition (also called legacy revenue recognition) is still supported for customers who previously enabled it. NetSuite currently offers the Advanced Revenue Management (Essentials) feature to automate revenue deferral and recognition.
To use the Revenue Recognition feature, the Accounting Periods feature must be enabled because accounting periods are used for revenue recognition schedules. Accounting periods must be set up for the complete range of time covered by your revenue recognition schedules. Also, revenue recognition requires one ore more deferred revenue accounts.
To enable Revenue Recognition:
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Go toSetup > Company > Setup Tasks > Enable Features (Administrator).
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Click the Accounting subtab, ensure the Accounting Periods, Revenue Recognition, and any other desired revenue feature boxes are checked.
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Click Save.
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Ensure that one or more Deferred Revenue accounts are set up as needed.
NetSuite automatically adds a default account with a type of Deferred Revenue to the Chart of Accounts because at least one account of this type is required for the feature. You can create additional Deferred Revenue type accounts as needed. For each item that requires revenue recognition, you designate a Deferred Revenue type account where revenue is posted according to the generated schedule.
To view the automatically created account or to create additional accounts, go toLists > Accounting > Chart of Accounts.
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Go toSetup > Accounting > Manage Accounting Periods, and ensure that accounting periods are set up for the range of time your revenue recognition schedules covers.
For example, if you are going to create schedules that extend 3 years ahead, you need to set up accounting periods through that time