Foreign Currency Deferred Revenue Schedule Discrepancies in NetSuite

One of our clients, a leading IT service management company, based in Canada had a requirement with foreign currency deferred revenue schedule. The experts of our firm examined the issue and came up with an appropriate solution.

Requirement

Our client faced an issue in the foreign currency deferred revenue schedule. Their customers who were transacting with a currency that is different from our functional currency were showing a deferred revenue balance instead of a nil deferred revenue balance.

Solution

Our experts analyzed every aspect of this issue and arrived at a solution through creating Revenue Reclassification Journal Entries for each month to ensure accurate results in subsequent periods. The Deferred Revenue Reclassification Journal Entries batch process should be run to reclassify deferred revenue. The revenue reclassification should be run each time after the creation of revenue recognition journal entries.

Result

The requirement of the client was attained successfully. The creation of Revenue Reclassification Journal Entries helps in resolving the foreign currency deferred revenue schedule discrepancies and it also helps in Unbilled receivable adjustments.   

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