www.netsuite.com
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.
NETSUITE REVENUE
MANAGEMENT
Streamline. Automate. Comply.
Key Benefits
Compliance with Evolving Standards
Comply with industry guidance and mandates
for today and tomorrow. NetSuite Revenue
Management works seamlessly with
Multi-Book Accounting to account for a
single transaction under multiple standards.
Real-time Revenue Intelligence
Analyze actual revenue impacts as well as
forecasts that dynamically respond to actual
postings to give an updated expected
revenue picture for future periodsall with
the ability to drill back into the source sales
document or transaction.
Agile Configuration
Break free from the shackles of myopic
financial solutions with a robust and nimble
framework that supports your revenue
management needs from end-to-end.
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Copyright 2017, Oracle and/or its affiliates. All rights reserved.
Revenue Recognition General
Sales transactions can involve a single action
involving a product or service (i.e. tax return
preparation by a CPA firm) or a series of
actions (i.e. project with multiple milestones).
Whether an equal amount of revenue must
be recognized at fixed intervals or different
amounts must be recognized at different
intervals, NetSuite Revenue Management
enables you to schedule revenue to be
recognized at the proper time automatically.
Key Features:
Automate Planning 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.
Manage Balance Sheet Accounts
Automatically adjust contract liability
(deferred revenue) and contract asset
balances based on real-time billings and
revenue data.
View Financials in Real-Time Automatically
post to the general ledger from Revenue
Planson your schedule, as frequently as
you wish.
Adaptive Forecasting Provide flexible
forecasting to accommodate revenue
projection updates based on real-time
business events such as project plan
updates or planned revenue withheld to a
future period.
Multiple Performance Obligations
To meet ever-evolving customer needs,
vendors often provide a bundle of multiple
products and/or services. These obligations
can be met at different times or over different
periods of time.
Event-Based Revenue Recognition Rules are extremely flexible and can be
shared across SKUs.
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Copyright 2017, Oracle and/or its affiliates. All rights reserved.
When a contract exists for a vendor to perform
multiple revenue-generating activities, the
contract price for such arrangements has to be
allocated and measured in alignment with
revenue recognition standards. Industry
guidance states how and when to separate
elements within an arrangement for the
performance or delivery of multiple products
or services that occur over different points
in time. NetSuite provides robust and
comprehensive configurable capabilities
based on requirements of ASC 605 and ASC
606/IFRS 15, enabling systematic compliance
for complexities associated with accurately
managing revenue contracts.
Key Features:
Flexible Revenue Contracts 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.
Dynamic Fair Value Pricing 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.
Powerful Allocation Calculator Leverage
Fair Value Prices to automatically allocate
arrangement consideration across all Elements
within the Arrangementincluding support
for ASC 605 and ASC 606/IFRS 15 standards.
Revenue Recognition for all Industries
Companies have traditionally been required to
follow industry specific guidance for revenue-
generating activities relating to the licensing,
selling, leasing, hosting or marketing of
products and services as specified in ASC 605
(and various preceding standards).
These arrangements encompass multiple
deliverables or elements: software and any
combination of specified or unspecified
enhancements, post-contract customer
support, services and additional licenses.
Packaged software arrangements with multiple
elements often have different dates of delivery
(i.e. product and support), requiring accounting
departments to recognize and defer revenue
amounts appropriately. ASC 606 includes
similar principles with the impact extending
beyond the industries that have traditionally
fallen under the guidance. Companies
selling gadgets with accompanying services,
including much of what falls into the "Internet
of Things" category, are often considered as
comparable contracts to those of software and
services. NetSuite's award-winning financial
management software enables accounting
Copyright 2017, Oracle and/or its affiliates. All rights reserved.
departments to account for any contract under
any revenue standard, for any given set of
products and services.
Key Features:
Support Percentage-of-Completion
Accounting Support revenue accounting
for projects leveraging percentage-of-
completion mechanisms.
Support Event Driven Revenue Plans Align
revenue recognition with event triggersfor
example the fulfillment 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 fulfillments or billings.
Revenue Recognition in Accordance with
Multiple Accounting Standards
The globalization of business today is powered
by several factors, including global capital
markets, foreign direct investment and economic
interdependence. In order to report financial
results accurately within revenue recognition
mandates based on multiple accounting
standards (e.g. GAAP, IFRS), accounting
departments worldwide can leverage a powerful
Multi-Book Accounting engine that can record
and post revenue-related activity to all books
concurrently eliminating data entry replication
and manual intervention.
Key Features:
Book-Specific Fair Value Prices, Revenue
Rules, Plans and Arrangements Automate
concurrent posting to all books as business
transactions occur in real-time, versus "after
the fact" posting or waiting until the end of the
period to replicate data entry and
post adjustments.
Book-Specific Foreign Currency
Management Enable accounting departments
to use book-specific functional currencies when
calculating the general ledger impact, including
the realized and unrealized foreign currency
gain/loss amounts per transaction.
Book-Specific Financial Reporting Enable
real-time revenue visibility for any book,
anywhere, anytime.