Finance and accounting teams in companies that use subscription- or contract-based billing can almost always count on additional work resulting from the ASC 606 revenue recognition criteria. Upsells, upgrades, and discounts now have to be accounted for under current guidelines as well as under the new revenue recognition standard. To successfully handle dual treatment of contracts, your billing and revenue recognition systems need to work together as one.
Sage Intacct cloud financial software automates your billing process and supports dual reporting under new and current guidelines. Automation frees up your teams time allowing them to focus on the business and helping to ensure compliance every step of the way. Here’s how:
Even though you may be in the transition period to ASC 606, you still need the ability to do business as usual. Sage Intacct eliminates labor-intensive manual calculations with built-in tiered pricing and usage-based billing. Your team will save time and drive revenue with models that match the complexity of your business. From billing across regular periods to non-linear billing, like milestones, Sage Intacct gives you the flexibility to adapt pricing and billing to the best revenue process for your business.
No matter the ideal billing system for your business, you still have to meet the revenue recognition criteria. Sage Intacct pulls your billing and revenue recognition together through the contract, so you can automatically recognize revenue as performance obligations are met.
If you use Salesforce CRM, you can establish separate rules for billing and revenue recognition in the contract. Be sure these rules are correctly executed in the ERP system. When you enter a contract into Salesforce, you must define the billing template or rule for each contract line item, and the system auto-generates the billing schedule. You can also automatically schedule out revenue based on a predefined rule.
In support of dual reporting under ASC 606, each contract line item has two revenue schedules—one based on current guidance and the other on ASC 606 criteria. Even if an item has to be recognized differently under ASC 606, the dual revenue treatment of every line item is incorporated within the contract.
There is no one-size-fits-all and you have to do some research to find the best ERP solution for you. Learn More Here
Content originally from Sage Intacct.