Many business owners, at some point in time due to uncertainties in business, think about revenue management. You can do away with revenue management if your business has a steady output, which is rarely the case in businesses nowadays.
A revenue management policy manages your finance and also helps in defining future strategies. To be on top of revenue recognition is a major challenge, and it gets more and more complicated by rapidly-changing rules such as the latest EITF 08-01 and 09-03 regulations on multi-element sales. This means finance teams have to do it with complex spreadsheets that limit productivity & visibility along with risks of errors and non-compliance.
To handle all these, NetSuite Cloud ERP has a new revenue recognition module to offer. It’s called Advanced Revenue Management(ARM). NetSuite ARM Module fully automates your revenue recognition processes. It provides total support for all the important revenue recognition standards that too as a cloud solution, the provider is responsible for it’s regular and automatic updates to always help you with latest revenue recognition rules and regulations.
This solution can help your finance teams by increasing productivity, visibility, accuracy, and compliance with automated revenue recognition calculation, reporting, and dashboards for continual monitoring.
NetSuite Advanced Revenue Recognition helps you in:
Efficiently meeting the revenue recognition standards.
Complying with the regulations like AICPA, FASB and SEC (including SOP 97-2 and 98-9, SOP 81-1, SAB 101, EITF 00-21, EITF 08-01 and EITF 09-03).
Recording and Reporting on revenue recognition by improving finance productivity and reducing cost and time of complex calculations.
Reducing or even eliminating the use of spreadsheets which in turn reduces errors and helps in better compliance.
Improving accuracy by proper review, approval, and execution of the revenue to be recognised.
Gaining clear visibility in the recognition process, with proper monitoring from start to end.
Quickly and efficiently extending your existing Oracle Financials, SAP R/3 or any third-party ERP deployments thanks to NetSuite’s cloud delivery.
Staying ahead with automatic updates on changes and updates in latest recognition standards.
The key capabilities and features of NetSuite ARM:
Support for all important Revenue Recognition rules and regulations
It provides complete functionality for compliance with all the latest recognition standards.
The solution delivers complete support and management of ESPs.
It accommodates the Vendor Specific Objective Evidence(VSOE) perfectly, this is where it is revolutionary, including Residual method and separate VSOE for each and every item.
With this, you can automatically recognise revenue for each and every line item according to the suitable revenue recognition method.
Effective Revenue Recognition on Multi-Element Sales
With this, you can automatically track and support “units of accounting” and selling prices for all elements of multi-element arrangements by VSOE, ESP and Third-party Evidence(TPE).
You can have the flexibility to customize schedules on per-item basis a this enables automatic reallocation of order value to each line item.
It also enables you to track and manage ESPs for every SKU across multiple business channels and dimensions.
You can get exception reports by comparing actual selling prices versus ESPs which is vital for accuracy.
Flexible Revenue Recognition Capabilities
It supports recognition schedules for all sales transactions and provides immediate notification when revenue is due to be recognised.
It enables you to recognise revenue using a separate process from billing.
It also enables you to use an integrated workflow for simultaneous revenue recognition and billing.
It enables you to meet the global business management needs with multi-currency and multi-subsidiary intelligence.
Integration with SAP, Oracle or NetSuite Financials
Your existing ERP system such as Oracle Financials, SAP R/3 or another third-party ERP system can be quickly deployed and integrated with NetSuite Advance Revenue Recognition.
The integration between NetSuite Advance Revenue Recognition and your existing ERP system will be bi-directional as you can import orders and invoices from your ERP and export journal entries to your ERP system.
If you’re already using NetSuite, the NetSuite Advance Revenue Recognition easily integrates with it as an add-on module.
Clear Reporting, Monitoring and Visibility
NetSuite dashboards give you real-time visibility into every aspect of revenue recognition with continuous monitoring along with exception reporting to identify and clear issues.
NetSuite Advance Revenue Recognition will enable you to explore your data with respect to various parameters as it is capable of creating sophisticated interactive reports on revenue and deferred revenue.
You will be able to instantly generate key reports such as revenue recognition forecasts, deferred revenue, and revenue by customer or item.
It enables you to see the detailed-down report to the transaction level ensuring your confidence in reporting your financials.
If you’re currently using NetSuite Cloud ERP, for you to know a few things:
There’s no extra cost currently on the New ARM Module. You will not be able to find it in your instance as you have to request for it so that NetSuite can enable it on your account.
The NetSuite ARM is not an upgrade over the existing Revenue Recognition, it’s a new and different module altogether. The current Revenue Recognition will not be discontinued as of now.
It requires a complex migration process as none of your current settings will carry on to new module, you will need to implement ARM from scratch, Bista Solutions a NetSuite implementation provider can help you in this pursuit so that your business can attain great heights.
If you’re not using NetSuite currently, which is presently the best Cloud ERP solution in the world, try out a Demo for it with Bista Solutions, a partner with NetSuite. We understand our clients’ business needs & processes and accordingly design the ERP system befitting their needs and demands.You can mail us at email@example.com and for any feedback or concern, you can write back to us on firstname.lastname@example.org