What will happen if we close stale sales order when ARM is enable? Sales Orders contain items that are not anymore in use so we would like to close those orders. Will this impact my revenue recognition (actual/forecast)?

Do those SO's already have a revenue arrangement & plan created? If not, you can either completely invoice them which should mean they are not picked up by the arrangement creation process, or you could set the items on those Sales Orders to "directly post" on the revenue tab, which means they wont get picked up on the arrangement process - then you can de-activate. I would test this in a Sandbox first!

Hi. Thank you. But those SOs already have revenue arrangement generated. How should I go through those?

What's stale about these SO's? Is it that rev rec has taken place manually outside of ARM so you need to remove the plans in place? Do they have plans created on the arrangement? If so, I have got rid of these in the past by running the "create rev rec journal entries" process so that it creates journals for these stale plans - once all the journals were created, I reversed the amounts in a separate journal

We're at the point of having too many packages(items) in netsuite ( most are setup to no-longer-in use GL accounts). We would like to inactivate these items. The other side is we also want to clear all old SOs with these items that are still open. We are just concern if closing those would entail confusion or potential issues to our deferred revenues balances.

As these SO's sound like they're still active for recognition, I would leave them for now and wait until the recognition has been completed - then close the SO's and make the items inactive.

Sounds good. We'll consider this option Thanks, Sam!

@SmithJ There's an Accounting Preference that controls what happens. It's called Create and Maintain Revenue Element upon Closed Order. The default setting is checked, which means that Closing an SO has no effect on revenue.