We have a situation that I am unsure how to handle to keep things reconciled with Deferred and Unbilled. For example, if we sell two items for $2,500 one is discounted 100% and the other is not discounted at all, the fair value price is $2,500 for each item so $1,250 in revenue gets allocated to each line item. We invoice the non discounted item and recognize the $1,250 in allocated revenue but the $1,250 that is allocated to the 100% discounted line sits in unbilled. If we close the Sales Order, that $1,250 never clears from unbilled. I selected the "maintain elements on closed sales orders option but it never updated. How do we clear the unbilled?

Why aren't you billing the discounted line? Seems like that would solve the issue.

The thought was to eliminate the transactional bloat with removing a service from the Sales Order. We don't invoice for services until they are rendered. If we invoiced the items, we'd need to fully recognize the revenue and issue a credit memo and recognize the revenue on the credit memo. Closing the sales order was a fast way to remove the line, and if needed we could reopen the line. If the role was reversed and we "billed' the zero dollar line item and recognized the $1,250 and wrote off the $2500 line item we would experience a clawback of revenue of $1,250 for a service that had value to the customer and was earned. I need to do a little more testing, I was wondering if I could exempt closed lines from the allocation done on the sales order and have ARM reallocate the remaining revenue across the remaining closed line. I had hoped that "Maintain elaments on closed sales orders" would do this but from what I have seen it does nothing

“Maintain elements on closed sales orders”. keeps your rev plans intact if your source transaction changes with rate or qty.

@Jason Jensen Late reply but: "Maintain elements" is the worst named preference in NS. It does the opposite of what it sounds like. You should UNCHECK this box, and if you re-open and re-close the order you should then see the element drop to the amount already invoiced from the SO (if any).

@Catherine Fray - uncheck?? I believe it set so that changing sales order (qty or amt) would not impact already created schedules.

Correct, but sounds like Jason needs the already created schedule to update so that the amount not invoiced from the SO is removed from the arrangement, which would require unchecking.

yes, but it is sooooo dangerous! so many times I have seen Sales mess up with already processed sales orders, particulary when it isn SFDC/Shopify (discounts, corrections, etc.). if he does it for all who knows what will happen 😞. been there once

Yes, all accounting preferences changes come with a TRY THIS IN SANDBOX FIRST label. However, I don't believe unchecking this is retroactively effective, the preference is only engaged at the moment an order is Closed.

aah yes, I check the box for all new clients. Once I worked on a project where colleague of mind did not have it checked, and all of the sudden we started getting changes in rev. turned out sales changed SFDC, it went downstream, SOs were not yet closed and not fully invoiced and/or recognized. it was a mess. never again