Revenue recognition schedule FAQs—AR or Order Entry

Find answers to common questions about revenue recognition schedules.

Revenue recognition schedules track revenue deferred from sales transactions. Sage Intacct generates revenue recognition schedules for posted sales transactions that have line items associated with revenue recognition templates.

Each schedule lists the definitions of future revenue recognition journal entries and posting periods in which revenue will be recognized and the amount to be recognized in each period for each sales transaction item.

To learn about project-based revenue recognition, see Project revenue recognition schedule FAQs.

You do not actually create a revenue recognition schedule manually. Intacct generates a revenue recognition schedule for each line item automatically when you post (save) the sales transaction. The transaction must meet the following criteria:

The following is an example of generating a revenue recognition schedule from an Order Entry transaction. Your company's workflow may differ.

  1. Convert a sales order that contains an item for which revenue will be recognized into the sales transaction on which revenue will be tracked. For example, the revenue activation transaction.

    The Rev rec template field in the Entries section displays the name of the revenue recognition template associated with the selected Item (via its Item GL group).

  2. (Optional, depending on the revenue recognition template settings) Enter a Start and End date for the recognition period.
  3. Post the revenue activation transaction.

    The transaction list appears.

  4. Locate the new revenue activation transaction in the list and select View.
  5. In the Entries section, select the applicable line item and select the Show details tab.
  6. Select View schedule.

    The Revenue Recognition Schedule window appears and displays the schedule.

You can view revenue recognition schedules from several places within Intacct:

  • From the Revenue recognition schedules list. Go to Order Entry> All > Revenue recognition > Revenue schedules. Then locate the desired schedule, select the three dots at the end of the record row, and select View.
  • From the applicable source transaction (for example, from the revenue activation transaction). Select on the applicable line item in the Entries section, select the Show details tab, and select View schedule.
  • From the Manage Revenue Schedules page. Go to Accounts Receivable or Order Entry> All > Revenue recognition > Manage revenue schedules. Then apply the applicable filters and select the link in the Total amount column for the corresponding transaction line item.

Learn about the fields in a revenue recognition schedule.

Learn how recognition methods affect amount calculations.

After you post the sales transaction that generates the revenue recognition schedule, starting the schedule depends on the posting method defined in the associated revenue recognition template:

  • Automatic posting: the system scheduler will automatically post the first row of the schedule on the scheduled posting date. Intacct will continue to automatically post each successive row until the schedule is completed (or until it is placed on hold or terminated).
  • Manual posting: you can post the revenue recognition for the first period and subsequent periods when desired.

If you are using event-based recognition, the transaction line item must be delivered before you can start recognizing revenue.

Learn more about manually posting revenue recognition.

Learn more about how Intacct processes revenue recognition.

There is no Post button in the Revenue Recognition Schedule window. You can only manually post revenue from one or more revenue recognition schedules in the Manage Revenue Schedules page.

You can do the following for an individual revenue recognition schedule, depending on your permissions:

  • Change posting dates or amounts
  • Reallocate the revenue across the revenue recognition schedule
  • Place the revenue recognition schedule on hold
  • Resume the revenue recognition schedule from a hold
  • Terminate all or a portion of the revenue recognition schedule

Learn more about working with a revenue recognition schedule.

You can also perform the following actions for multiple revenue recognition schedules at the same time using the Manage Revenue Schedules page:

  • Place one or more revenue recognition schedules on hold
  • Resume one or more revenue recognition schedules
  • Terminate all or a portion of one or more revenue recognition schedules
  • Post revenue from one ore more revenue recognition schedules

Learn more about using the Manage Revenue Schedules page.