Before you set up Revenue Management—AR or Order Entry

You need to know the following before you set up Revenue Management:

  • Will you set up revenue recognition in Order Entry or Accounts Receivable?

Intacct strongly recommends that you enable Revenue Management for Order Entry instead of for Accounts Receivable. Here is why:

In Accounts Receivable, you get the following functionality with Revenue Management:

  • Amortization

In Order Entry, you can get the following functionality with Revenue Management:

  • Amortization
  • Event-based recognition
  • Renewals
  • Multiple-element arrangement revenue allocation (with Advanced Revenue Management)
  • Links with Projects (free with Projects)
  • Separation of billing and revenue (for example, quarterly billing with monthly revenue recognition)
  • Other considerations:
    • Other Intacct add-on applications and integrations require Order Entry (for example, Projects, Inventory Control, Salesforce, Avalara, and so on)
    • Significantly easier historical data uploading
  • When should revenue be deferred and/or recognized?
  • Which amortization methods will you use? For example, Straight line with or without prorate, percent complete, milestone, and so on.
  • What are the contract arrangements? Is the recognition term variable or fixed?
  • Are products bundled or single sales?
  • Are you also setting up event-based recognition?
  • If you are enabling MEA allocations:
    • How will you configure the fair value prices lists? Is the price list based on actual value or a percentage of another value? Will you allow changes to fair value prices on transactions?
    • How will you set up allocations for kits?

Learn more about Setting up Standard Revenue Management

Learn more about Setting up Advanced Revenue Management