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Accrued and deferred project revenue
We are implementing NetSuite with SuiteProjects and I have a query regarding ARM.
Our requirement is to recognise revenue on time and purchases recorded to the project (accrued income) and invoiced income is not recognised until work is completed (deferred revenue).
It's not unusual for our contracts to specify an invoice schedule - such as 50% upfront, 50% on completion (or 5 invoices throughout the project). However, we are required to recognise revenue based on the time and expenses, not invoices.
We understand that ARM will not allow us to raise an invoice upfront on a project, but it forces us into invoicing for actual charges recorded. Is there a workaround that will allow us to work with our contracts while still recognising revenue using accrued and deferred accounts?