Order Management Enhancements

Order Management Enhancements in NetSuite 2025.1

Order Management Enhancements in NetSuite 2025.1 introduces key improvements to order management. This release brings enhanced billing, revenue recognition, subscription management, and fulfillment processes. These updates improve order accuracy, streamline invoicing, and provide better tracking of recurring revenue and contract-based pricing.

This release includes enhancements to annual recurring revenue (ARR) analytics, invoice and allocation workflows, pooled usage pricing, and shipment management. Below are the most impactful updates in order management.

Annual Recurring Revenue (ARR) Analytics & Dashboard

• What’s Changing?
  • NetSuite expands ARR tracking to include:
    • Subscription-based businesses can now track ARR alongside Monthly Recurring Revenue (MRR).
    • A new ARR dashboard provides insights into subscription trends, retention rates, and growth projections.
  • Enhanced ARR workbook with standard reports and better forecasting tools.
• Impact & Next Steps:
  • Gives finance teams better visibility into subscription-based revenue streams.
  • Improves long-term revenue forecasting for businesses with recurring billing models.
  • Organizations should enable the new ARR dashboard and integrate it into their financial planning processes.

Invoice and Allocate Before Activation

• What’s Changing?
  • Businesses can now invoice and allocate revenue before a subscription is activated.
  • Charges and revenue elements are now created in pending activation status instead of being tied to activation timing.
• Impact & Next Steps:
  • Improves cash flow management by allowing earlier invoicing.
  • Ensures revenue allocation aligns with financial reporting standards.
  • Finance teams should adjust revenue recognition settings to leverage the new allocation model.

Pooled Usage Pricing for Subscription Services

• What’s Changing?
  • Businesses can now price subscription services annually but charge customers monthly.
  • Usage-based and overage services can now be priced at one frequency and billed at another.
• Impact & Next Steps:
  • Provides greater flexibility for subscription-based businesses.
  • Allows companies to offer more attractive, predictable billing options.
  • Organizations should review subscription pricing structures to incorporate pooled usage models.

Higher Decimal Precision for Uplift Calculations

• What’s Changing?
  • Decimal precision for uplift calculations has been expanded to eight places.
  • Improves accuracy of percentage-based pricing changes for contracts and subscriptions.
• Impact & Next Steps:
  • Reduces rounding errors in contract pricing adjustments.
  • Businesses should review pricing models and ensure uplift calculations align with new precision standards.

Ship Central Enhancements for Fulfillment & Logistics

• What’s Changing?
  • New “Pack All” option for handling bulk carton and pallet processing.
  • Weighing scale integration to capture total pallet weight.
  • Multiple packing labels and document printing from a single menu.
  • Expanded carrier support, including carrier-specific shipping references and rates.
  • Ability to ship domestic orders to U.S. military PO boxes and U.S. territories.
• Impact & Next Steps:
  • Improves warehouse efficiency by simplifying bulk packing and shipping.
  • Increases fulfillment accuracy with better weight tracking and multi-label printing.
  • Logistics teams should update Ship Central workflows to utilize the new packing and weighing features.

Estimated Tax for International Shipments

• What’s Changing?
  • A new setting in Ship Central allows businesses to calculate estimated tax on international shipments.
  • Businesses can now add a detailed description of goods for cross-border shipments.
• Impact & Next Steps:
  • Enhances compliance with international tax regulations.
  • Reduces customs-related delays by improving invoice documentation.
  • Businesses should review tax settings in Ship Central and update shipping documentation practices.

Key Takeaways for Order Management Enhancements in NetSuite 2025.1

1. ARR analytics provide better tracking and forecasting for subscription revenue.
2. Businesses can now invoice and allocate revenue before activation, improving cash flow.
3. Pooled usage pricing allows businesses to offer more flexible billing structures.
4. Higher decimal precision for uplift calculations reduces rounding errors in pricing.
5. Ship Central enhancements improve warehouse efficiency, carrier integrations, and international tax handling.