RSMUS.comNetSuite has introduced the 2023.1 new release notes, which includes enhancements to the Advanced Revenue Management Period Close Checklist. The checklist now contains two new tasks which include recognizing revenue and reclassifying revenue.
To access the period close checklist, navigate to Setup > Accounting > Manage G/L > Manage Accounting Periods
Select the period you wish to close. Prior to recognizing and reclassifying revenue, accounts receivable and accounts payable must be locked. Select the go to task arrow for Recognize Revenue within period close checklist, then select the Recognize Revenue button.
Now you will be brought to the page where you can create revenue recognition journal entries – here you can select different filters if needed. After reviewing the revenue recognition plans, select the Create Journal Entries button.
You will then be brought to the Process Status page where you can see the status of the Advanced Revenue Recognition journal entry creation. To review the journal entries created, select Complete. If you receive an error, there will be context provided in the message column link.
After this is complete, you will be brought back to the task where you can now select the Mark Task Complete button, if everything processed as expected.
Next, you’ll want to select the go to task arrow for Reclassify Revenue in the period close checklist, then select the Reclassify Revenue button.
Now, you will be brought to the page where you can create reclassification journal entries – here you can see the number of transactions to be created.
You will then be brought back to the Process Status page where you can see the status of the Advanced Revenue Recognition. To review the journal entries created, select Complete. If you receive an error, there will be context provided in the message column link.
After this is complete, you will be brought back to the task where you can now select the Mark Task Complete button, if everything processed as expected.
A few other things to note with this new feature:
- The revenue recognition and revenue reclassification processes can be run at any time – however, it is best practice to run these processes at the end of the period.
- The Advanced Revenue Management (Essentials) feature must be enabled to see the revenue recognition and revenue reclassification tasks in your Period Close Checklist.
- A user must have the Edit or Full level of the Manage Accounting Periods permission to set up, edit, or lock transactions for period close.
To learn more about NetSuite’s advanced revenue management period close checklist and how you can leverage this new update, please contact our team.
