Deferred Revenue for Increasing Efficiency and Accuracy

Overview

About the Client

The client is a leader in clean technology solutions, facilitating the transition to carbon-free electrification and transportation. It offers a range of green solutions, including solar energy, energy storage, electric vehicle (EV) charging, and an advanced energy management platform. One of its notable innovations is the Adaptive Charging Network (ACN), which optimizes electricity delivery to EVs. The company’s mission is to enable organizations to generate, store, and utilize clean energy on-site, ultimately aiming to create a “Virtual Power Plant” model.

The challenge            

• The client wants to enhance their project revenue recognition process within their NetSuite environment. The focus was on improving the accuracy and efficiency of revenue recognition for projects related to actual cost recognition and cost on invoices. 
• The primary challenge is to design a solution that will run flawlessly to generate the journal entries based on the recognized revenue cost and the actual recorded cost on the invoice in a single run.   
• To keep track of accounts for every project and make the journal entries accordingly and also make sure that no duplicate records will be generated for a single project.
• All the journal entries must be created for the particular posting period specified by the user.

Our Solution

• BlueFlame Labs implemented a customized solution for the client’s NetSuite environment to automate and optimize their journal entry creation process. The solution includes the following: 
• Created a custom suitelet form where all the open projects will be displayed and the client can filter out the projects based on the filters present on the form. Filters include posting period and project name. 
• The client can select projects from the custom form and submit the form to recognize project revenue and create the journal entries accordingly for the selected projects. All the calculations of actual revenue recognition and deferred revenue recognition will run through the script internally. 
• The script was designed to automatically recognize the actual costs associated with specific projects and the costs recorded on the invoices for that project. Once the script execution is completed, a reference of the journal entries will be attached to the project record and project reference on journal entries respectively. 

Technology used

Oracle NetSuite

• Customized solution using suitelet to automate and optimize the journal entry process
• Creation of customized form using suitescript
• Script execution for internal reference of journal entries

The Impact and Outcome   

• Streamline the journal entry creation process by implementing the custom solution.
• Provided a scalable solution that can be adapted as business grows and their projects increase in complexity.
• Reduction in manual intervention, saving time and reducing the risk of errors.
• Improved precision in revenue recognition, aligning closely with actual costs and invoiced amounts.
• Clearer, more accurate financial reports, aiding better strategic decision-making.