Enhanced interface

Configure Revenue Management

Use the Configure Revenue Management page to enable revenue recognition in Accounts Receivable, Order Entry, or Contracts.

In a multi-entity environment, configure Revenue Management at the top level.

Subscription	Standard revenue recognition for AR Standard or Advanced revenue recognition for Order Entry Contract Standard or Advanced revenue recognition
Regional availability	Australia Canada South Africa United Kingdom United States
User type	Business user with Admin privileges
Permissions	Administration Application Subscriptions: List, View, Subscribe, Configure

Configure Revenue Management for Accounts Receivable

The following procedure describes how to enable revenue recognition for Accounts Receivable. See Set up Standard Revenue Management—AR or Order Entry for information on how to complete the Revenue Management setup process.

Although technically you could set up Revenue Management in both Accounts Receivable and Order Entry, Intacct recommends that you choose one or the other to simplify the learning process for your users.

To configure Standard Revenue Management for Accounts Receivable:

Go to Company > Admin > Subscriptions.
On the Subscriptions page, select Revenue Management, then select Subscribe or Configure.
On the Configure Revenue Management page in the Accounts Receivable section, select Standard revenue recognition.
Use the Default deferred revenue account dropdown list to select the applicable deferred revenue account.
Use the Revenue recognition journal dropdown list to select the journal to which to post revenue recognition.
If you want users to be able to edit revenue schedules, select the Edit revenue schedules checkbox.
Select Save.

Configure Revenue Management for Order Entry

The following procedure describes how to enable revenue recognition for Order Entry. See Set up Standard Revenue Management—AR or Order Entry for information on how to complete the Revenue Management setup process.

Configure Standard Revenue Management for Order Entry

Go to Company > Admin > Subscriptions.
On the Subscriptions page, select Revenue Management, then select Subscribe or Configure.
On the Configure Revenue Management page in the Order Entry section, select Standard revenue recognition.
If you want users to be able to edit revenue schedules, select Edit revenue schedules.
If you want to use event-based recognition, select Event-based recognition.
If you want revenue recognition schedule entries to be grouped when they’re posted to the GL, select a frequency for Revenue recognition schedule entries.

The One per entry option does not summarize. It creates a separate journal entry for every revenue recognition entry.
Select Save.

Configure Advanced Revenue Management for Order Entry

Advanced Revenue Management for Order Entry is no longer available for new subscribers. See Contracts for advanced revenue recognition needs.

Configure Revenue Management for Contracts

You must subscribe to Contracts before configuring Revenue Management in order for the Contracts section to appear in the Configure Revenue Management page. After you configure Revenue Management, see Set up Contracts for information on other tasks associated with setting up revenue recognition with Contracts (such as creating revenue templates to define revenue schedules, and so on).

To configure Revenue Management for Contracts:

Go to Company > Admin > Subscriptions.
On the Subscriptions page, select Revenue Management, then select Subscribe or Configure.
On the Configure Revenue Management page, do one of the following:
- If you want to subscribe to Contract Standard Revenue Recognition, select Standard revenue recognition.
- If you want to subscribe to Contract Advanced Revenue Recognition, select Advanced revenue recognition (includes MEA).
If you are subscribed to Advanced revenue recognition, select the default way to handle open revenue scheduled before the MEA effective date. Users can change this setting when creating an MEA allocation scheme.
If you are subscribed to Advanced revenue recognition, select the applicable fair value price effective date.
If you want to use event-based recognition, select Event-based recognition.
If you are also subscribed to Projects and want to estimate variable consideration, select Enable deferred revenue for time and materials projects.

Due to the complexity of this feature's integration within the Contracts application, turning this option on is permanent.
If you want the option to not defer revenue for some contract lines, select Enable revenue recognition on invoice.

After you create at least one contract line that uses this feature, you will not be able to turn off this configuration option.
If you want to subscribe to Contract Expense Recognition, select Expense recognition.
Select Save.

Field descriptions

The following tables describe all fields available when you configure Revenue management.

Accounts Receivable
Order Entry
Contracts

Accounts Receivable

Accounts receivable field descriptions
Field	Description
Revenue Recognition	Choose one of the following options: Standard revenue recognition: enables revenue recognition in Accounts Receivable (gives you the ability to set up revenue schedules on Accounts Receivable invoices) No revenue recognition: disables revenue recognition in Accounts Receivable (no revenue schedules on Accounts Receivable invoices)
Default deferred revenue account	The account to which to post revenue deferred under a revenue recognition schedule. If a user creates an AR invoice and chooses an account label that does not have a deferred revenue account associated with it, Intacct will post to this default deferred revenue account.
Revenue recognition journal	The journal where the revenue recognition journal entries derived from Accounts Receivable revenue schedules are posted.
Edit revenue schedules	Allows users to edit a revenue recognition schedule. If you enable this feature, give the appropriate edit permissions to the applicable users (List and Edit permissions for Revenue Recognition Schedules are in General Ledger permissions).

Order Entry

Order entry field descriptions
Field	Description
Revenue Recognition	Choose one of the following options: Standard revenue recognition: enables revenue recognition in Order Entry (gives you the ability to set up revenue schedules on Order Entry invoices) Advanced revenue recognition: enables revenue recognition that includes support for multiple-element arrangements (MEAs) in Order Entry. Includes everything available in Standard revenue recognition, with the addition of fair value prices lists, MEA allocations, and MEA Allocations report. No revenue recognition: disables revenue recognition in Order Entry. Advanced Revenue Management for Order Entry is no longer available for new subscribers. See Contracts for advanced revenue recognition needs.
Edit revenue schedules	Allows users to edit a revenue recognition schedule. If you enable this option, give the appropriate edit permissions to the applicable users (List and Edit permissions for Revenue Recognition Schedules are in General Ledger permissions).
Event-based recognition	Lets you automatically prevent revenue schedules from starting for invoice line items until you specifically indicate that the recognition event has occurred. This is accomplished via the line item's Delivery status, which defaults from the selected item. You can also choose to defer the revenue schedules for one or more line items until all invoice line items are delivered. This option is required with Advanced revenue recognition. Learn how to set up event-based recognition in Order Entry.
Override the default fair value price list on transactions	Allows users to override the default fair value price list in Order Entry transactions. Learn more about fair value price lists.
Automatically include all transaction items in MEA bundle	Automatically considers all line items in a sales transaction as one bundle. All line items will participate in the MEA allocation. The allocated revenue for line items for which revenue isn’t deferred posts to the applicable AR and Sales accounts when the invoice is posted. Enabling this feature removes the Bundle column from the line item entry section of sales transactions.

Contracts

Contracts field descriptions
Field	Description
Revenue recognition	Choose one of the following options: Standard revenue recognition: enables revenue templates in Contracts. Learn more about Contract Standard Revenue Recognition. Advanced revenue recognition: enables revenue templates and support for multiple-element arrangements (MEAs) in Contracts Includes everything available in Standard revenue recognition, with the addition of MEA prices lists and MEA allocations. Learn more about Contract Advanced Revenue Recognition. No revenue recognition: disables revenue templates in Contracts. If you want to subscribe to Contracts, you must enable a revenue recognition option. Even if you only want to subscribe to Contract Billing, you must at least enable Standard revenue recognition. See your implementer for more information.
If there is open revenue scheduled before the MEA effective date	To reduce errors and keep your revenue data clean, open (unposted) revenue scheduled before a new MEA allocation effective date must either be posted or have its scheduled posting date changed before Intacct will save a new MEA allocation. This field lets you choose your organization's default way to handle open revenue that's scheduled before a new MEA allocation's effective date. Users can choose a different option when they create a new MEA allocation. Options are: Post the revenue on the scheduled posting date: Intacct automatically posts the open revenue using the scheduled posting date when you save the new MEA allocation. The revenue amount remains as scheduled. Change the scheduled posting date to equal the MEA effective date: Intacct includes the open revenue in the new MEA allocation and changes the scheduled posting date to the MEA effective date when you save the new MEA allocation. For example, if there's open revenue scheduled to post on September 30 and the new MEA allocation date is October 3, Intacct changes the scheduled posting date for the open revenue to October 3. The revenue amount that was rescheduled is now different as it is part of the new MEA allocation. If a contract line is on hold or is undelivered, Intacct reschedules the applicable revenue amounts to post on the new MEA effective date when you save a new MEA allocation. It will do this even if you chose the Post the revenue on the scheduled posting date option.
Use the fair value price effective as of the	Specify the date Sage Intacct should use to determine the effective fair value to use for a contract line in an MEA allocation scheme. Options are: Contract line start date: this option is the best practice. MEA allocation effective date Changing this configuration option only affects new MEA allocation schemes going forward. It has no effect on existing MEA allocations.
Event-based recognition	Lets you automatically prevent revenue schedules from starting for contract line items until you specifically indicate that the recognition event has occurred. This is accomplished via the line item's Delivery status, which defaults from the selected item. You can also choose to defer the revenue schedules for one or more line items until all contract line items are delivered. Event-based revenue recognition is included in your subscription to Contract Standard or Advanced Revenue Recognition. Learn how to set up event-based recognition in Contracts.
Enable deferred revenue for Time & Materials projects	Provides the infrastructure to defer estimated time-based revenue for Time & Materials projects. This functionality supports ASC 606 guidance that allows companies to recognize estimated variable consideration as revenue. Due to the complexity of this feature's integration within the Contracts application, turning this option on is permanent. Learn more about Estimated time-based revenue. What are the implications of turning on this option? This feature removes the "Project time and materials" billing method and replaces it with the "Project time" and "Project materials" billing methods. All time and materials projects will require at least 2 contract lines in order to bill correctly: one Project time contract line and one Project materials contract line. Even if you do not want to defer revenue for a time and materials project, you will still need to add the 2 contract lines. You can only select this field if the Contract dimension is enabled in the Configure Project page. If the Contract dimension is not enabled in Projects, this field is read-only. Additionally, this option requires that the Track time by option in the Configure Projects page be set to Project and task OR Customer, project, and task.
Enable revenue recognition on invoice	Provides the infrastructure to recognize revenue on invoice for business scenarios where it's not necessary to defer revenue for a contract line. When you save the configuration with this option set to true, Intacct does the following: Displays a Recognize on invoice checkbox on the contract line. Creates the "Recognize on invoice" revenue template. After you create at least one contract line that uses this feature, you will not be able to turn off this configuration option. Learn more about recognizing revenue when a contract line is invoiced.
Expense recognition	Choose one of the following options: Standard expense recognition: enables expense templates in Contracts. Learn more about Contract Expense Recognition. No expense recognition: disables expense templates in Contracts.