Before you set up Revenue Management—Accounts Receivable 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
  • 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 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 you also setting up event-based recognition?
  • If you need support for MEA allocations, see Contracts for advanced revenue recognition needs.

Learn more about Setting up Standard Revenue Management