Enable Revenue Accounting Features

Administrators can enable the following features on the Accounting subtab of the Enable Features page at Setup > Company > Enable Features.

If the feature creates system-generated accounts when enabled, the accounts created are included in the descriptions. For a complete list of system-generated accounts, see Feature-Specific, System-Generated Accounts.

Feature	Description
Revenue Recognition	Amortize revenue from your sales.
Revenue Commitments	Enable recognition of revenue prior to billing customers. Revenue commitments appear and behave like invoices; both cause revenue recognition, based on sales orders and returns. However, an invoice creates a customer liability, whereas a revenue commitment does not trigger an invoice and customer liability. Enabling this feature creates the system-generated Unbilled Receivables account.
VSOE	Defer revenue on products with multiple elements using Vendor Specific Objective Evidence (VSOE) capabilities. VSOE revenue recognition includes support for the residual method, SOP 98-9, as well as SOP 97-2.
Sales Order Revenue Forecasting	Forecast revenue based on sales order amounts and return authorization amounts. A revenue forecast gives a more complete picture using sales orders because it includes all orders whether they are billed, unbilled, or use multiple invoices.
Amortization	Allocate an expense across a range of time and then recognize the expense in increments, only as goods or services are used. For example, defer a prepaid expense such as insurance and amortize the proper amount over the period the insurance is in effect. Enabling this feature creates the system-generated Deferred Expense and Accumulated Depreciation accounts.

Feature

Description

Revenue Recognition

Amortize revenue from your sales.

Revenue Commitments

Enable recognition of revenue prior to billing customers. Revenue commitments appear and behave like invoices; both cause revenue recognition, based on sales orders and returns. However, an invoice creates a customer liability, whereas a revenue commitment does not trigger an invoice and customer liability.

Enabling this feature creates the system-generated Unbilled Receivables account.

VSOE

Defer revenue on products with multiple elements using Vendor Specific Objective Evidence (VSOE) capabilities. VSOE revenue recognition includes support for the residual method, SOP 98-9, as well as SOP 97-2.

Sales Order Revenue Forecasting

Forecast revenue based on sales order amounts and return authorization amounts. A revenue forecast gives a more complete picture using sales orders because it includes all orders whether they are billed, unbilled, or use multiple invoices.

Amortization

Allocate an expense across a range of time and then recognize the expense in increments, only as goods or services are used. For example, defer a prepaid expense such as insurance and amortize the proper amount over the period the insurance is in effect.

Enabling this feature creates the system-generated Deferred Expense and Accumulated Depreciation accounts.

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