NetSuite Advanced Revenue Management (ARM)

NetSuite ARM automates revenue recognition for ASC 606 and IFRS 15 compliance. Manage performance obligations, allocate revenue across contracts, and handle deferred revenue schedules automatically. Built for subscription models and multi-element arrangements where manual revenue tracking becomes unmanageable.

What is NetSuite Advanced Revenue Management?

  • NetSuite Advanced Revenue Management automates revenue forecasting, allocation, recognition, and reporting through a rule-based framework. 

    It handles complex revenue scenarios including subscription billing, multi-element arrangements, and performance obligation tracking in compliance with ASC 606 and IFRS 15 standards. 

    ARM eliminates manual revenue schedules and spreadsheet tracking by automating the entire revenue management process from contract creation through recognition.

NetSuite Advanced Revenue Management Features

01
Revenue arrangements
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Automatically create revenue arrangements from sales transactions. Consolidate multiple revenue sources and track performance obligations in one place.

02
Revenue allocation
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Define standalone selling prices (SSP, VSOE, ESP, TPE) and automatically allocate revenue across contract elements using fair value pricing and formulas.

03
Revenue recognition rules
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Configure recognition patterns for each product or service. Set recognition methods, amount sources, and timing based on your business model.

04
Revenue recognition plans
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Generate forecast and actual plans showing when revenue should be recognized and how much in each period. Control GL posting through actual plans.

05
ASC 606 / IFRS 15 compliance
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Automate compliance with revenue recognition standards. Handle performance obligations, timing differences, and contract modifications correctly.

06
Subscription and milestone-based recognition
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Support multiple recognition models including subscription, fulfillment, project milestone, percentage completion, and time-and-materials.

07
Deferred revenue management
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Automatically defer and recognize revenue across future periods. Update contract balances and deferred revenue based on actual billings.

08
Revenue forecasting
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Real-time visibility into committed, deferred, and recognized revenue. Forecast plans update automatically as actual revenue is recognized.

How Much Does NetSuite Advanced Revenue Management Cost?

  • ARM is available as an add-on module to NetSuite ERP. But the real question isn't what ARM costs; it's what manual revenue tracking costs you. 

    Incorrect deferred revenue balances, compliance risk, and hours spent on spreadsheet schedules add up fast.

Why Choose Stockton10?

Your business model evolved but ARM didn't
You configured ARM for your pricing model at launch. Since then, you've changed pricing, added product tiers, and shifted your go-to-market. Nobody updated the revenue rules. We keep ARM aligned with how you actually sell now.
Deferred revenue errors are silent
ARM calculates deferred revenue automatically. When rules drift or contract mods process incorrectly, deferred revenue becomes wrong. You won't catch it until an audit surfaces the issue. We monitor for revenue accuracy.
Contract modifications break revenue plans
Customer upgrades, downgrades, and cancellations should update revenue plans correctly. When they don't, revenue leaks or gets recognized incorrectly. We ensure contract changes flow through ARM properly.
Fair value pricing gets outdated
Your SSP/VSOE price list was set at implementation. Product pricing changed but nobody updated fair values. Your revenue allocation is now using stale pricing. We keep fair value pricing current.
Performance obligations need business context
Your revenue accountant knows how to map products to performance obligations. When they leave, the new person doesn't. We document the mapping logic so knowledge doesn't walk out the door.

Challenges NetSuite Advanced Revenue Management Solves

The Problem
How OneWorld fixes it
  • Manual revenue schedules
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Building revenue schedules in spreadsheets is slow and error-prone. ARM automates schedule generation based on rules you configure once.
  • Incorrect deferred revenue balances
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Manual tracking leads to deferred revenue errors that surface during audits. ARM maintains accurate balances automatically based on recognition rules.
  • Difficulty with subscription revenue recognition
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Subscription models require revenue recognition over time. ARM handles recurring billing and time-based recognition automatically.
  • Non-compliance with ASC 606 / IFRS 15
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Revenue recognition standards are complex. ARM enforces compliance by automating performance obligation tracking and proper allocation.
  • Multi-element arrangement allocation
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Allocating revenue across bundled products and services manually is complex. ARM uses fair value pricing to allocate revenue correctly.
  • Contract modifications break revenue plans
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Changes to contracts require revenue plan updates that are easy to get wrong manually. ARM handles prospective and retrospective modifications correctly.

NetSuite Advanced Revenue Management FAQs

What is NetSuite ARM?

ARM is NetSuite's revenue recognition module that automates revenue forecasting, allocation, and reporting for compliance with ASC 606 and IFRS 15. It handles subscription billing, multi-element arrangements, and performance obligation tracking.

Do I need NetSuite Advanced Revenue Management?

You need ARM if you sell subscriptions, have multi-element contracts, need to defer revenue over time, or must comply with ASC 606/IFRS 15. If you're tracking revenue recognition in spreadsheets, ARM eliminates that manual work.

What's the difference between ARM Essentials and Revenue Allocation?

ARM Essentials handles revenue recognition rules, schedules, and plans. Revenue Allocation adds fair value pricing, SSP/VSOE/ESP methods, and sophisticated allocation formulas for multi-element arrangements.

How does NetSuite handle ASC 606?

ARM automates ASC 606 compliance by tracking performance obligations, allocating revenue using standalone selling prices, and recognizing revenue based on configurable rules. It handles contract modifications and adjustments correctly per the standard.

How to automate revenue recognition in NetSuite?

Configure revenue recognition rules for each product or service, set up fair value pricing for allocations, and link rules to contract line items. ARM then automatically generates revenue plans and recognition journal entries.

Does Stockton10 support Advanced Revenue Management?

Yes. We handle ARM configuration, revenue rule setup, fair value pricing, and ongoing support to ensure your revenue recognition stays accurate and compliant.

Is Your Revenue Recognition Actually Accurate?

If your product pricing or contract structure changed in the last year and nobody updated ARM, your revenue recognition is probably wrong.