Billing them the amount equal to what actually happened during each month is not an option, as the customer expects to be billed what they agreed to on their insertion order (Sales Order)

Do you use projects within Netsuite? % based rules would be more suitable for you.

Thanks for replying! We do have the projects module, however, not currently using it. Will projects allow us to bill one amount, but reocgnize another?

Yes it does. Have a look into reclassification journal you’llgl now hw they work.

Thanks! I will have a look at Projects. This sounds promising

Billing and revenue are two separate process in NS. Do you have ARM?

We do have ARM. And it is fine for recognizing easy deferrals of Quarterly Subscriptions or Annuals, or products that have a specific service life (E.g. 28 days or 14 days etc.) However, we are having trouble working out how to have a billing schedule for customers setup in advance (at signing of the contract) but then recognize revenue based on actual usage and delivery.

I am facing the same dilemma with the customer - the start use date is unknown, the billing is prepaid. I am leaning towards having a start date begin a year from now if the contract is annual (or three year from now if it is a three-year on. Then once the usage date is known sales order gets updated. Would like to hear your thoughts on this approach