NetSuite Changelog
Order ManagementRelease NotesNew FeatureBillingFinanceRevenue Recognition

Invoice and Allocate Before Activation in NetSuite 2025.1

Invoice and allocate charges before activation in NetSuite 2025.1, enhancing subscription revenue management.

·2 min read·2025.1 — 2025.1 Release Notes·From NetSuite Release Notes PDF

Starting in NetSuite 2025.1, businesses can now invoice and allocate charges prior to activating subscriptions, providing more flexibility for subscription-based sales. This enhancement is particularly beneficial for subscription businesses that often bundle various offerings, such as projects, hardware, and ongoing services. Here’s a detailed look at what this means for your order management processes.

Key Features of the New Functionality

With this update, the following capabilities are introduced:

  • Pre-Activation Invoicing: Users can create invoices and bill customers for hardware and services before the subscription is activated, improving cash flow management.
  • Forecast Revenue Creation: Revenue can now be forecasted and allocated against inventory and project revenue even before the subscription services commence.
  • Pending Activation Status: Charges and revenue elements are generated in a pending activation state. This allows for increased flexibility when determining the timing of service provision and billing.
  • Pooled Usage Pricing: Subscription businesses now have the option to set pricing for services on an annual basis while charging customers monthly, accommodating diverse billing preferences.

Practical Applications

For businesses operating on a subscription model, this new feature allows for:

  • Improved revenue recognition practices, ensuring that income is recognized in a timely manner relative to service delivery.
  • Enhanced inventory management, as businesses can allocate resources against forecasted revenue based on projected service activation timelines.
  • More tailored customer billing, catering to various frequencies, thus enhancing customer satisfaction and retention.

Best Practices to Implement

  • Review Billing Cycles: Ensure your billing cycles are set up to align with the new functionality to optimize cash flow and revenue recognition.
  • Train Staff: Provide thorough training for finance teams on how the pending activation status affects revenue and invoicing procedures.
  • Monitor Cash Flow: Regularly review cash flow forecasts to ensure that the new processes are aligned with financial projections.

Who This Affects

This enhancement primarily impacts:

  • Administrators: They will need to configure settings to enable invoicing and allocation before activation.
  • Developers: Adjustments may be required in custom scripts related to revenue recognition and billing processes.
  • Accountants: They will need to adapt to new revenue recognition timelines and practices.
  • Sales Teams: They may need to communicate new billing practices effectively to customers.

Key Takeaways

  • Businesses can invoice and allocate charges before subscription activation in NetSuite 2025.1.
  • Revenue elements can be created ahead of service activation, improving cash management.
  • Pooled usage allows for flexible billing practices that cater to customer preferences.
  • Proper setup and training are crucial for leveraging this new feature effectively.
Source: Invoice and Allocate Before Activation — NetSuite Release Notes PDF. This article was generated from official Oracle documentation and enriched with additional context and best practices.

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