Setup Sage Intacct Revenue Recognition for Re-Leased Invoices

In this article

• Prerequisites (Configured in Sage Intacct)
• Order Entry Requirement for Revenue Recognition
• Setting Up Revenue Recognition for Rent Installments in Re-Leased
• One-Off Invoices with Manual Revenue Recognition
• Example: End-to-End Flow (Simplified)
• Notes and Considerations

For our Asia-Pacific users, the term "Tenancies" is used, while our North American clients may be more familiar with the term "Leases". For more information on regional terminology, please refer to our Glossary of Regional Terminology.

Revenue recognition in Sage Intacct is a powerful tool that helps ensure compliance and accuracy in financial reporting by deferring and recognizing revenue over time. While most of the setup for revenue recognition happens in Sage Intacct itself, there are key elements Re-Leased customers need to configure so that invoices generated in Re-Leased integrate seamlessly with Intacct's revenue recognition functionality.

Prerequisites (Configured in Sage Intacct)

Before enabling revenue recognition for Re-Leased invoices in Sage Intacct, ensure the following are already set up in your Intacct environment:

• Revenue Recognition Template created (e.g., Straight-Line Monthly)
• Item and Item GL Groups configured with:
  • Revenue Recognition Template linked
  • Deferred Revenue Account assigned
• Order Entry enabled and configured
• Transaction Definitions for Order Entry created
• Rev Rec Journals and Accounts configured (e.g., Deferred Revenue, Revenue – Services)
• Sales Order (Activation Document) form configured for tenancy/lease contracts

Note: These configurations are typically handled by your Sage Intacct implementation partner. This article focuses on how Re-Leased interacts with that setup.

Order Entry Requirement for Revenue Recognition

Important: Sage Intacct requires Order Entry (Sales Orders/Purchasing) to enable revenue recognition functionality.

• You can use Order Entry without revenue recognition – Sales Orders can be used for standard invoicing workflows without triggering revenue recognition.
• However, to use revenue recognition, you must use Order Entry – Revenue recognition in Intacct requires an Activation Document (Sales Order) linked to your invoices.

If you're not currently using Order Entry in your Sage Intacct instance, you'll need to enable it before implementing revenue recognition for Re-Leased invoices.

Setting Up Revenue Recognition for Rent Installments in Re-Leased

To enable Sage Intacct revenue recognition for invoices generated by Re-Leased, each Rent Template in Re-Leased must reference the Intacct Activation Document (Sales Order) and use the correct Order Entry Transaction Definition.

Required Fields in Re-Leased Rent Template:

Note: Re-Leased does not currently automate the linking of Source Document Numbers. This must be manually added to each Rent Template.

One-Off Invoices with Manual Revenue Recognition

For ad hoc invoices (outside of recurring rent), you can still trigger revenue recognition if the following fields are populated on the invoice line in Re-Leased:

• Revenue Recognition Template selected
• Revenue Recognition Start Date and End Date for the recognition period
• OE Transaction Definition specified
• Source Document Number (matching an existing Activation Document in Intacct, if applicable)

This ensures that even one-time charges can follow a defined revenue schedule in Sage Intacct.

Example: End-to-End Flow (Simplified)

1. Create Activation Document (Sales Order) in Sage Intacct: Set customer, item, tenancy/lease start/end dates, quantity (billing periods), and link to the Revenue Recognition Template.
2. Enter Source Document Number in Re-Leased: In the Rent Template, paste the Activation Document number into the Source Document Number field. Ensure the OE Transaction Definition and item match the Sales Order.
3. Re-Leased Generates Invoice: Invoice syncs to Sage Intacct, linked to the original Activation Document.
4. Sage Intacct Revenue Recognition Triggered: Revenue recognition runs based on the template tied to the item. Monthly recognition posts are created according to the schedule.

Notes and Considerations

• The Sage Intacct Activation Document (Sales Order) is the driver for revenue recognition — not the invoice.
• The item linked in the Re-Leased Rent Template must already have the correct Revenue Recognition Template in its Item GL Group settings.
• If tenancy/lease dates or items change, updates must be made both in Sage Intacct and in Re-Leased to keep schedules aligned.
• Re-Leased currently supports a single Revenue Recognition Template per invoice (line-level revenue recognition templates are not supported).
• For partial-month leases, slight variances in monthly recognition may occur; these are typically acceptable if documented for audit purposes.