Position Your Finance Team for Success with Automated, Flexible and Compliant Revenue Recognition Processes
Staying on top of revenue recognition is a significant challenge for software companies. Getting it right means keeping pace with ever-changing licensing and distribution models, managing the complexities of multi-element contracts, and complying with stringent SEC regulations and Sarbanes-Oxley. And you've got to stay ahead of a sea of ever-changing revenue recognition rules such as the new EITF 08-01 and 09-03 standards. Unfortunately, most companies resort to complex spreadsheets that sap finance productivity, harbor substantial risk of error, and significant compliance risk.
NetSuite provides a total cloud solution that solves your revenue accounting challenges, with complete support for all key revenue recognition standards, automated revenue calculation, and fully integrated dashboards and reporting. The result is greater ease of use and flexibility, better data integrity, more visibility and lower ongoing maintenance.
- Equip your organisation to efficiently meet necessary revenue recognition standards and comply with AICPA, FASB and SEC regulations (including in SOP 97-2 & 98-9, SOP 81-1, SAB 101, EITF 00-21, EITF 08-01 and EITF 09-03)
- Improve finance productivity and reduces the cost and time of calculating, recording and reporting on revenue recognition
- Substantially reduce or even eliminate the use of spreadsheets, dramatically reduce errors, and gain strong compliant processes
- Establish strong revenue accounting processes and higher accuracy, ensuring the proper review, approval and execution of revenue that's due to be recognised
- Deliver clear visibility into all aspects of the revenue recognition process, from summary to detail.
Support for All Key Revenue Recognition Standards
- Comply with AICPA, FASB and SEC regulations (including SOP 81-1, SAB 101, EITF 00-21, EITF 08-01 and EITF 09-03)
- Accommodate the requirements specified in SOP 97-2 & 98-9 relating to Vendor Specific Objective Evidence (VSOE) including the accommodation of the Residual Method and a separate VSOE price for every item
- Track and support "units of accounting" and selling price (VSOE, TPE or ESP) for all elements of multiple-element arrangements.
Flexible Revenue Recognition Capabilities
- Supports revenue recognition schedules for all sales transactions
- Assign flexible and customisable schedules on a per-item basis
- Receive immediate notification when revenue is due to be recognised
- Recognise revenue as a job is completed, thanks to support for percentage of completion-based revenue recognition
- Flexibly recognise revenue using a separate process for billing, or use an integrated workflow for simultaneous revenue recognition and billing
- Manage one-off and recurring billing processes for subscription and maintenance-based revenue streams.
Pre-packaged or Custom Revenue Recognition Templates
- Revenue-recognition templates allow you to define revenue-recognition methods and apply them at the line-item level of your invoice
- Associate a template to a good and service so that related recognition rules to apply whenever that good or service is sold
- Associate a template to a good or service so that the related recognition rule is automatically applied whenever that good or service is sold.
Clear Reporting and Visibility
- Monitor recognised revenue continuously with real-time dashboards
- Easily examine breakouts of recognised revenue across various elements
- Get clear visibility into Estimated Selling Prices, ensuring accuracy
- Drill down to the transaction level, so that you can be confident in reporting your financials
- Generate sophisticated revenue and deferred revenue reports with analytics by region, product line and more.