How NetSuite Advanced Revenue Management Can Impact Your Bottom Line
Businesses often struggle to stay on top of revenue recognition because of the complicated and fast-changing regulations on multi-elements sales. As a result, the finance team may resort to spreadsheets that limit visibility and create risks for non-compliance and error.
NetSuite’s Advanced Revenue Management feature simplifies the complexities of revenue recognition by providing a comprehensive approach to contract management, in compliance with the required standard. Whether a sale encompasses a series of obligations that span across a time period, a single obligation, or diverse obligations in a bundle, you can rest assured the results are always in compliance with actionable data and real-time revenue.
So, not only does the Advanced Revenue Recognition feature support all revenue recognition standards but it also automatically updates to display the latest recognition rules.
Moreover, reporting dashboards allow for continual monitoring, helping your finance team increase visibility, productivity, compliance, and accuracy.
In this blog post, we’ll look at how businesses, by and large, can benefit from NetSuite Advanced Revenue Recognition.
Automate Planning and Flexible Forecasting
You can automate scheduling to recognize revenue in a predetermined period based on Revenue Rules. These re-usable rules work as triggers for the creation of a Revenue Plan and its commencement to a sales transaction.
Moreover, you can use NetSuite’s flexible forecasting capability to keep a track of revenue projection updates that are based on real-time events.
Leverage Multiple Performance Obligations
Vendors often provide a bundle of services/products to meet customer needs, and these obligations are met at different periods of time. In a contract where a vendor provides multiple revenue-generating activities, the price for the arrangement has to be allocated and measured in compliance with the revenue recognition standards. This is where NetSuite’s Advanced Revenue Recognition comes in!
NetSuite provides the functionality of using industry guidance and systematic compliance capabilities to accurately manage revenue contracts.
Flexible Revenue Contracts– it allows you to drive an accurate and agile version of the revenue contract. It consists of individual attributes like Revenue Rule, revenue allocated amount, and start and end dates, which can be split into several arrangements or merged across linked contracts.
In a nutshell, NetSuite’s Advanced Revenue Recognition removes inconsistencies in reporting and compliance, improves disclosure requirements, and furthermore, provides a flexible and robust framework to deal with different revenue scenarios.
Find out more about how you can leverage real-time revenue intelligence using NetSuite with help from our NetSuite implementation and consulting experts. We can help customize your suite to address business challenges and maximize profitability.
Get in touch with NetSuite partners today at 1(800) 459-7128.