On-premise License
Objective
In some cases, the contract may have only one element but that may need to be split between two elements for revenue recognition purposes. The classic example is an on-premise license which requires a split between immediate revenue recognition and the maintenance aspect recognized across the maintenance period.
This blog explains how this can be set up in NS with appropriate integration with Saleforce and subsequent revenue recognition.
Item Group
When using Salesforce and syncing to NetSuite, you need to create an Item Group in NetSuite. This is due to limitations in Salesforce that does not, natively, allow for the creation of Item Groups.
To create an Item Group, log into your NetSuite account and go to Lists > Accounting > Items > Item Group. This will open the New Item Group page. From here fill out all applicable information.
As you can see we set up our Item Group with three items and included quantities. When you click Save, the Salesforce to NetSuite Integration will run and create it in Salesforce. In order to see if it synced to Salesforce, go to the Custom subtab and check the Salesforce ID field.
If you do not see the Salesforce ID, log into your Celigo Integrator.io account and check to see if there are any errors with the integration.
You can copy this ID and past it into the Salesforce URL to go directly to it or search for the item group by name to confirm that it has synced over.
There are some fields that you will not see in Salesforce due to Salesforce field limitations.
As you can see above, I have added the NetSuite ID, NetSuite Sync Error, and also a Price Book. The NetSuite ID is the Internal ID of the Item Group that we created. What you do not see in Salesforce are the three items that we have included in the Item Group on the NetSuite side. Please be aware that you need to make sure to include the price book on the product so that it is then available to be selected when generating an Opportunity. As you can see, this allows the Sales Rep to only see the Item Group you want them to be able to select when creating an Opportunity. Here we can see what the Opportunity and Sales Order will look like in both systems.
Once the Stage of the Opportunity is Closed Won, the user can click Create NetSuite Order, which has been added to the layout. You can also set up the integration to automatically sync Opportunities when a certain stage is reached. It is recommended to use the Create NetSuite Order button so that they sync over at a point where there won’t be a lot of changes done to the Opportunity in Salesforce. You can then go into NetSuite and see that the Sales Order has been created.
When you look at the Sales Order in NetSuite, you can see the Item Group and the items that are included in that group. You will not see this information in Salesforce.
Under the Custom tab, you will find the Salesforce ID along with Salesforce Term in Months, Send to Salesforce, and Salesforce Quote ID (if used).
You are now able to view the Account record in Salesforce and see the Opportunity, and Order listed. This provides visibility to the Sales Rep as to the status of the Opportunity. You can also add the invoice related list to see when the invoice is created and paid.
Item Group Revenue Recognition Example
Once the sales order is created in NetSuite, the item group is visible and each line item can be edited. From here you can change the Revenue Recognition Start and End Date and other details for Revenue Recognition for each line item of the item group.
You can then create Revenue Arrangements and Revenue Plans for the Sales Order. Go to Transactions > Financial > Update Revenue Arrangements and Revenue Plans.
Revenue Arrangement
Revenue Plans for each of the line items can be created by clicking Update Revenue Plans.
Revenue Plans for each of the line items can be created by clicking Update Revenue Plans.
Revenue Plan One Time Direct Posting
Revenue Plan Straight Line by Even Periods
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