Set up Standard Revenue Management—AR or Order Entry

If you've subscribed to Order Entry, Sage Intacct strongly recommends that you use Order Entry for Revenue Management.

If you have a relatively straightforward workflow and you haven't subscribed to Order Entry, then you can set up Standard Revenue Management for Accounts Receivable.

Although technically you could set up Standard 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.

Set up for Order Entry

1. Configure the Revenue Management subscription to enable Standard revenue recognition for Order Entry.
   In a multi-entity environment, configure the Revenue Management subscription at the top level. You can complete any of the other steps in the top level or entity level as desired.

   Learn more about Configure Revenue Management.

2. Add revenue recognition categories.

   When a user terminates a revenue recognition schedule or places it on hold, the user selects a revenue recognition category to indicate why the action was required.

   Learn more about Revenue recognition categories—AR or Order Entry.

3. Define revenue recognition schedule templates.

   Revenue recognition templates define how you want to amortize deferred income as you deliver product or perform services. You can create any number of templates and then associate those templates with item GL groups.

   Learn more about Revenue recognition templates—AR or Order Entry.

4. Optionally, configure Order Entry to allow start and end dates for contracts and subscriptions.

   If you enable start and end dates, Intacct adds a Contract tab to the Item Information page so that users can define the contract period for an item.

   Learn more about Configure Order Entry .

5. Create any desired item GL groups and associate the applicable deferred revenue accounts and revenue recognition templates with them. When a user creates an invoice and chooses an item associated with the item GL group, Intacct will automatically create a revenue recognition schedule for the item. The user won’t need to know which posting account to choose, which term to choose, and so on because it has already been configured in the template.

   Learn more about Item GL groups—Order Entry and Add a General Ledger account.

6. Create/Edit the applicable transaction definitions for your workflow.

   Select the applicable Transaction posting option and enable revenue recognition for the applicable transaction definition. If you want to separate revenue recognition and billing, see Set up revenue recognition with installment invoicing—Order Entry.

   Learn more about Order Entry transaction definitions.

7. Create a revenue recognition journal and assign it to the applicable transaction definitions in the Documents configuration tab in the Configure Order Entry page.

   Learn how to create a journal.

8. Define Delivery defaults and/or contract terms on items. Delivery defaults are used with event-based recognition. Default contract terms are related to services items.
9. If you enabled editing of deferred revenue schedules when you configured Revenue Management, assign user/role permissions to allow users to modify revenue recognition schedules. List and Edit permissions for Revenue Recognition Schedules are in General Ledger Permissions.

   Learn more about Assign permissions to users and Assign permissions to roles.

10. Optionally, customize the Filtered schedules grid layout.

Set up for Accounts Receivable

1. Configure the Revenue Management subscription to enable Standard revenue recognition for Accounts Receivable and enter the applicable Default deferred revenue account and Revenue recognition journal.
   • Default deferred revenue account: You specify the default account where you post revenue deferred under a revenue recognition schedule. If a user creates an invoice and chooses an account label that doesn’t have a deferred revenue account associated with it, Intacct will post to this default revenue account.

     Learn more about Add a General Ledger account.

   • Revenue recognition journal: The revenue recognition journal is the journal where the revenue recognition journal entries derived from revenue schedules are posted.

     Learn more about Add or edit journals.

   Learn more about Configure Revenue Management.

2. Optionally, add revenue recognition categories.

   When a user terminates a revenue recognition schedule or places it on hold, the user selects a revenue recognition category to indicate why the action was required.

   Learn more about Revenue recognition categories.

3. Define revenue recognition schedule templates.

   Revenue recognition templates define how you want to amortize deferred income as you deliver product or perform services. You can create any number of templates and then associate those templates with account labels.

   Learn more about Revenue recognition templates—AR or Order Entry.

4. If your AR application has account labels enabled, create any desired account labels and associate the applicable revenue recognition templates to them.

   When a user creates an invoice and chooses an account label that has a revenue recognition template associated with it, Intacct will automatically create a revenue recognition schedule for the invoice. The user won’t need to know which posting account to choose, which term to choose, and so on because it has already been configured in the revenue recognition template associated with the account label.

   Learn more about About AR account labels.

5. If you enabled editing of deferred revenue schedules when you configured Revenue Management, assign user/role permissions to allow users to modify revenue recognition schedules. List and Edit permissions for Revenue Recognition Schedules are in General Ledger Permissions.

   Learn more about Assign permissions to users and Assign permissions to roles.

6. Optionally, customize the Filtered schedules grid layout.