O'Reilly logo

NetSuite OneWorld Implementation 2011 R2 by Thomas Foydel

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Selling items with deferred revenue

Selling maintenance contracts of any kind, whether it's a software support contract or a product warranty, requires Revenue Recognition. When you make the sale, the support or warranty item appears on the invoice, but unlike a product sale, you do not post the sale amount to a revenue account, but to a deferred revenue account because you cannot recognize all of the revenue immediately. If the support contract covers 12 months, then by generally accepted accounting principles, you recognize one-twelfth of the contract value each month. We added revenue recognition to this chapter, because it most often takes place on the sales order. We will also discuss recognizing deferred revenue in the next chapter on ERP ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required