Finance and accounting teams in companies that use subscription- or contract-based billing can anticipate additional work resulting from the ASC 606 revenue recognition criteria. Upsells, upgrades, discounts, and other “special deals” 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 as one. Tight integration is not an option—it’s a must.
Sage Intacct cloud financial software automates your billing process and supports dual reporting under new and current guidelines, freeing you to focus on your business and helping ensure compliance every step of the way. Here’s how:
Choose from a range of automated pricing and billing models
Even though you may be in that dreaded transition period to ASC 606, you need the ability to do “business as usual.” Sage Intacct eliminates labor-intensive manual calculations with built-in tiered pricing and usage-based billing. You 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.
Automatically recognize revenue as performance obligations are met
No matter the ideal billing for your business, you still have to meet the revenue recognition criteria. Sage Intacct ties your billing and revenue recognition tied together through the contract, so you can automatically recognize revenue as performance obligations are met.
Make use of the #1 integration with Salesforce
If you use Salesforce CRM, you can easily establish separate rules for both billing and revenue recognition right in the contract—and be sure these rules are correctly executed in the ERP system. When you enter a contract into Salesforce, you simply 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.
Catch the rhythm with RKL eSolutions
With Sage Intacct, the complex dance between billing and revenue recognition becomes a streamlined, automated process. And with the professionals at RKL eSolutions as your partner, you can take every step toward ASC 606 compliance with confidence. Download our free eBook to find out what you need to do to be prepared for the compliance deadline.