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#83 | NetSuite Part 1 – Enabling the Advanced Revenue Management (ARM) Feature

This blog is part 1 in a four-part series that we will be discussing setting up the Advance Revenue Management or ARM. Part 1 will provide an overview of enabling of the Advance Revenue Management feature in NetSuite.

In this part, we will discuss the following:

I suggest you watch the video. It’s easier to understand if you are a visual/audio learner. The content below is the same as the video. It’s for those who learn by reading.

Pre-requisite for Advance Revenue Management

Before we go into the details for part 1, you need to enable the accounting periods feature as a pre-requisite for Advance Revenue Management.

Screenshot for enabling the accounting periods feature
Pre-requisite for Advance Revenue Management (Accounting Period Feature)

Enabling the Advance Revenue Management Feature

When you enable Advanced Revenue Management, NetSuite automatically adds the following system accounts:

  • Deferred Revenue
  • Unbilled Receivable (already exists if you have enabled the Revenue Commitments feature)
  • Revenue Arrangement (a non-posting account)
Screenshot of enabled ARM
Deferred Revenue, Unbilled Receivable and Revenue Arrangement

When Advanced Revenue Management is enabled, revenue for all items is deferred until revenue recognition journal entries are created. Item records use the system–generated deferred revenue account and the Default Standard revenue recognition rule by default. You must select a value for the Create Revenue Plans On field on the item record to finish item configuration for Advanced Revenue Management.

If you have used the following features in the past, they will continue to function for source documents created prior to the time you enable Advanced Revenue Management.

Screenshot of showing the added system accounts
Added system account (Deferred Revenue)

New source documents will be processed using Advanced Revenue Management:

  • Revenue Recognition
  • Revenue Commitments
  • VSOE
  • EITF 08-01 Revenue Recognition SuiteApp
  • Sales Order Revenue Forecasting

To use Advanced Revenue Management, the Accounting Periods feature must be enabled because accounting periods are used for revenue recognition plans.


When you enable the Advanced Revenue Management feature, it cannot be disabled.

To enable Advanced Revenue Management:

Step 1: Go to Setup → Company → Setup Tasks → Enable Features

Screenshot of instructions to enable features
Click Setup in the menu then select company and then select enable features

Step 2: Click the Accounting subtab and tick Advanced Revenue Management.

Step 3: Make sure that Accounting Periods is also ticked.

Step 4: Click Save.

Screenshot of instructions of enabling the advance revenue management
Enabling Advance Revenue Management Feature in NetSuite

You just learned how to enable the Advance Revenue Management (ARM) feature. To quickly go back to the sections of this tutorial, click on the links below.

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