Issues with Over Time Recognition SKU’s not stopping rev rec post termination

We’ve run into a scenario when we fully cancel a sales order with a term date/RMA where some small residual revenue continues to recognize in Netsuite for the remainder of the original contract term pre-termination.

We believe this scenario occurs when we have at least one SKU that where the revenue recognition rule is over time such as straight-line prorate.

It seems what’s happening is that the math on the positive (original SO line) and negative line (RMA) does not entirely equal each month and therefore does not offset.  It does net to zero at the end of the original contract, however, it could take us 3 years to get there.

We would expect Netsuite would simply end revenue recognition and book any residual delta in and only in the month of cancellation, not let this play out to the end of a contract term that is no longer valid.

Has anyone dealt with this issue before?  Any advice?





Rookie Asked on November 10, 2021 in Revenue Recognition.
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