Hi Jason, what you invoice to your customer per year on a two year deal does not matter when it comes to ASC606. If it is a two-year deal you recognize revenue ratably or some other manner (and frankly do not have invoice at all because it is all about revenue :)). The way NS does it is you set up subscription your items with the specific rev rec rules and rev plans triggers and it allocates as soon as revenue arrangement is created. Merging (can happen retrospectively or prospectively, up to you. It seems you are not using ARM at the moment or with the certain limits, at least, you do not allocate (but do you need to? if you just sell licenses without, say, maintenance, perhaps you do not?)

Each year's subscription was processed separately and each one with its own arrangement. We want to evenly distribute revenue over the entire term, and this can be achieved by merging the arrangements. The merge would involve allocating revenue between years rather than individual products. As they plan to sell more of these deals in the future, I'm interested in determining the least problematic approach. Personally, I prefer importing the entire two-year term as a single subscription to ensure that the same items remain within the same revenue transaction. However, I'm unsure whether interval pricing or subscription change orders would offer the most flexibility in this situation. Is it easier to import changes to the Price plan or as a change order?

do you have multiple subscriptions for the same contract that begin/end in different times but still are considered the same contract per ACS606?

They signed a 5 year, annually billed deal for the same items and quantities, but created separate subs at each anniversary to coincide for each change in discount. The first few years are discounted heavily, so we need to do a revenue allocation from the later years to to allocate to the earlier years based on the discount variance from the fair value. The performance obligation does not change over the term since we deliver the exact same service for the complete term. We know the revenue over all 5 years should be combined and recognized ratably over the entire 60 month term. If you average the revenue for the entire contract it is $7K/month, but as it stands now we will recognize $3K/month for the first year and the last year we are going to recognize $8K/month. Currently I have 5 separate arrangements and subscriptions for each line. I basically want to change how these types of orders are processed in NetSuite, I want to create one subscription for each item for the 5 years and let ARM do the spread of revenue. I was wondering if it was best to use Interval pricing to adjust the price at each anniversary, or if it is best to use change orders. We've never used interval pricing and just created change orders but AR complains that Change orders are hard to deal with if the contract is modified, I wondered if Interval pricing was easier and more flexible

We have a relatively similar scenario and I'm interested how this should be setup in NS. Are you planning to even out the revenue to be recognized instead of having a lower revenue in the first year and higher revenue in the second year?

@Luis That is the plan, in this situation there is no change in license counts, it is just expiring discounts at the annual billing anniversary, since there is no change in the QTY of licenses we need to spread the revenue ratably, I am going to test the interval and change order methods and see which is the most flexible