Revenue management is getting more complex. It involves dealing with order management, contract renewals, and complicated billing, such as subscription and consumption billing models. It also involves complying with revenue recognition standards like ASC 606 and IFRS 15, which regulate the recognition of revenue from contracts. In addition, the SEC and other regulators are now increasing focus on compliance with these standards. Are your front and back offices ready?
In the past, some companies customized a broad ERP system to handle each aspect of complex revenue management. This meant being locked into that vendor and version at a high cost. Some companies used separate vendors to individually solve their billing, renewal, and revenue recognition challenges. Or, as new revenue recognition requirements emerged, some companies moved to spreadsheets to comply with the added rules. All these loosely integrated components, customizations, and spreadsheets made revenue management labor-intensive, at high risk for errors, and extremely expensive. It also meant that companies didn’t have one solution with transparency to reconcile total order value, billing, and revenue recognition. It’s time to use the right solution.
The SOFTRAX Revenue Management System, or RMS, is a sophisticated order management, billing, contract renewal management, and one of the world’s most powerful revenue recognition engines. As a recognized leader in revenue management since 1999, it provides a platform for advanced revenue accounting that you will never need to replace. Our solution meets the accounting needs of companies ranging from startups to multi-billion-dollar enterprises. This multi-tenant cloud platform uses a proprietary policy engine to automate key processes and reporting requirements. This dramatically reduces human touch and errors, which will transform your revenue management and accounting. And all with zero need for customizations or spreadsheets. The RMS platform provides a secure, auditable, and controlled environment for processing complex revenue.
The RMS billing functionality handles complex billing models, such as subscription, consumption (including minimums, tiering, and overages), one-time, and milestone.
The RMS revenue recognition functionality incorporates a state-of-the-art revenue subledger. It conforms to ASC 606 and IFRS 15 standards. It handles accounting for multiple currencies and entities. It handles unbundling line items, assigning accounts, allocating revenue against standalone selling price, and deferring revenue. And it also processes contract modifications and combinations, variable consideration, material rights, time value of money, cost capitalization and more in a sophisticated way.
Given that up to 90% of a company’s revenue comes from renewals, the RMS subscription and contract renewal management functionality tracks and notifies you of pending renewals , keeps track of allowed upticks to maximize revenue at renewal, and handles complex co-terminations with full contract history.
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The SOFTRAX Revenue Management System (RMS) delivers the industry’s highest level of system-wide automation. This single solution seamlessly integrates with existing CRM, CPQ, or home-grown systems automating the flow of order and fulfillment data to trigger billing and revenue recognition. The system simultaneously accounts for exchange rate, tax, and payment data to ensure accurate and timely processing.
Most companies moving to a subscription or consumption billing model anticipate increased billing complexity. But many have not planned for the associated revenue recognition challenges.
SOFTRAX is the industry’s only solutions provider with the breadth of expertise and functionality to handle subscription, consumption, milestone, and renewal billing as well as advanced revenue recognition.
Now that most organizations are confident in their ASC 606 compliance, they face the “day-two” challenge of operationalizing this massive accounting shift.
SOFTRAX solutions are designed to seamlessly evolve with the changing financial requirements that come with business operational adjustments or compliance modifications.
With the growth of cloud computing, many companies are faced with the need to modernize existing enterprise systems.
SOFTRAX solutions feature seamless integration with all major ERP, CRM, and CPQ systems with zero customizations or spreadsheets.
While total back-office automation may seem out of reach, the path toward continuous accounting is something most companies should prioritize if they want to thrive in the future.
SOFTRAX provides the only solution that combines complex billing and revenue recognition capabilities to streamline revenue management and advance an organization’s path toward continuous accounting.
Most legacy core business systems can’t keep pace with the increasing complexity of revenue management forcing many organizations to rely on manual or custom processes that are inefficient and short-term fixes.
SOFTRAX is the only solution that provides seamless integration with all major ERP, CRM, and CPQ systems with zero customization and zero spreadsheets.
SOFTRAX is the industry’s only solution that pairs complex subscription and milestone billing with enterprise-level revenue recognition capabilities in a single multi-tenant cloud system. To understand more download our Solution Overview sheet.