Mixing ARM Revenue Recognition Items and Direct Revenue Posting Items in the Same Sales Order

Question

Hi everyone,

I'm working with NetSuite Advanced Revenue Management (ARM) and have a question about Direct Revenue Posting.

I tried creating a Sales Order that contains both:

* an item that uses Revenue Recognition (ARM), and
* an item with Direct Revenue Posting enabled.

However, NetSuite would not allow me to create the transaction because these two types of items were mixed in the same transaction.

My question is:

Is it a NetSuite limitation that Direct Revenue Posting items cannot coexist with ARM revenue recognition items in the same Sales Order or Invoice?

If a transaction needs to contain both types of items, is the recommended (or required) approach to configure the Direct Revenue Posting item as an ARM revenue recognition item as well (for example, using an Immediate Recognition Rule) instead of enabling Direct Revenue Posting?

I'd appreciate it if anyone could confirm whether this is expected behavior or share the recommended best practice.

Thank you!

Dennis Morgan · Accepted Answer

Hi @Ricard

You are correct. Direct posting and ARM recognition items cannot co-exist on the same sales order.

The way I was able to get around this situation was to create a rule of Immediate recognition, not direct posting and assign it to the item. Then, you would be able to generate a sales order with both items.

What you will notice with an Immediate recognition item is that this item will flow through deferred revenue. When the revenue recognition process is run, the revenue will pass-through deferred revenue to your income statement.

Best of luck.