Creating a Custom Revenue Recognition Event in NetSuite
One of our clients, a leading broadband satellite provider from Singapore, had a NetSuite Customization requirement in invoicing the client product and creating a custom revenue recognition event.
The client product is a coupon-based product that requires a pin to access. The customer will purchase this product in bulk and then sell it to an end-user. The end-user will first log in to the coupon, entering a unique pin. If the pin is logged in, each coupon is recognized as revenue. Each coupon has an expiration date; if the pin is not logged in prior to the expiration date, the revenue is recognized on the expiration date. Each month, the client will receive a report detailing which coupons were first entered, and they will update the same in NetSuite.
Our client required us to design a solution for invoicing the client product and revenue recognition event in NetSuite and the revenue should be planned based on the first login of the pin or the expiry of the pin whichever is earlier.
In order to achieve the goal, our developers made use of the custom revenue recognition type (first login) and revenue recognition event. The user had to update a custom first login record and then a revenue recognition event is created using the script. On the creation of the revenue recognition event, the plan is created. The expired pin will generate the revenue recognition event through running a scheduled script.
Our developers attained the requirements successfully through designing a solution for invoicing revenue recognition for planning the revenue based on the first login or the expiry of the pin.