NetSuite Revenue Management
Revenue management can no longer live in spreadsheets. NetSuite’s award-winning financials software simplifies the complexities of evolving revenue recognition mandates, no matter if a sale encompasses a single performance obligation, a series of obligations spanning a time period, or diverse obligations in a bundle. The results are “always on” compliance, real-time revenue intelligence and actionable data.
Key Benefits of NetSuite Revenue Management:
- Automatically schedule revenue to recognize in the appropriate period based on rules. Re-usable Revenue Rules govern the triggers, the creation and commencement of a Revenue Plan associated to a sales transaction, as well as the plan duration.
- Support Multi-Currency Transactions – Ensure that fluctuations in exchange rates are appropriately accounted for in each period.
- Automatically adjust contract liability (deferred revenue) and contract asset balances based on real-time billings and revenue data.
- Automatically post to the general ledger from Revenue Plans—on your schedule, as frequently as you wish.
- Drive an agile and accurate view of the revenue contract. Revenue Arrangements are containers for Revenue Elements (performance obligations). Elements have individual attributes such as Revenue Rule, revenue plan start and end dates, and revenue allocated amount. Revenue Elements can be merged across linked orders or contracts, or split into multiple Arrangements, to accurately represent the revenue contract regardless of how the revenue source transactions are managed and billed.
- Define the fair value as either a constant or a dynamic formula. Formulas can be based on information within other revenue elements— for example, a fair value for support based on a percentage of licenses within that contract. Item Revenue Groups allow for items with identical fair value requirements to share Fair Value Prices and eliminate duplication. The ability to add user defined dimensions allows a single item (or group of items) to have multiple Fair Value Prices and meet stratification requirements.
- Leverage Fair Value Prices to automatically allocate arrangement consideration across all Elements within the Arrangement—including support for ASC 605 and ASC 606/IFRS 15 standards.
- Support revenue accounting for projects leveraging percentage-of completion mechanisms.
- Align revenue recognition with event triggers—for example the fulfilment of an item, the generation of a bill against an order, or work beginning on a project. A single performance obligation can be associated with multiple plans in order to support partial fulfilments or billings.