Revenue Management can be a bit tricky when trying to track multiple revenue types, including subscriptions, licenses and professional services. Here are a few facts and tips to consider when setting up and utilizing the Intacct Revenue Management Module.
Using the Revenue Management Module in Intacct
1. Revenue Management is available in both Accounts Receivable and Order Entry
2. A Sales Order can have different schedules for revenue recognition and invoicing (e.g., recognize revenue monthly but invoice quarterly)
3. A Contra-Deferred Revenue account must be set up in your Chart of Accounts to hold the debit balance of the deferred revenues, which will be relieved when the invoices are posted.
(Simple Definition Alert: A Contra-Deferred Revenue account can be described as a revenue account which is expected to have a debit balance instead of the usual credit balance. A contra revenue account reduces a company’s gross revenue to net revenues.)
4. The following Transaction Definitions will post to the GL as follows:
5. The posting accounts are set up as follows:
- Deferred Revenue – assign to the Item GL Group
- Contra-Deferred Revenue – assign as the Debit account in the RR Activation transaction definition
- Revenue – assign at the Credit account(s) in the RR Activation transaction definition
- Contra- Deferred Revenue – assign as the Credit account in the Sales Invoice transaction definition
- Accounts Receivable – assign as the Debit account in the Sales Invoice transaction definition