With SOFTRAX contract renewal management software, renewals happen in a timely manner and for the appropriate revenue amount, including any agreed-upon uptick in the renewal rate.
Do you deal with complex billing models? Does your company wonder how to effectively track revenue recognition to comply with ASC 606 and IFRS 15 regulations? You’re not alone. More companies are experimenting with subscription and consumption billing models, while also supporting legacy billing models. Or companies find that subscription billing isn’t the right choice for their business and choose to revert to one-time billing.
Companies that sell subscriptions in the B2B space often provide services such as implementation, training, and other forms of support. This may require billing one-time or complex milestones on the same invoice as subscriptions. And this can mean complying with complex portions of the ASC 606 and IFRS 15 guidance, such as managing variable consideration and performing proportional allocations against Stand Alone Selling Price (SSP).
The SOFTRAX Revenue Management System, or RMS, is the solution to your billing and revenue recognition challenges. The RMS billing functionality handles complex billing models, such as subscription and consumption. And it also handles legacy one-time and milestone billing models. As part of a cohesive revenue management platform, the billing functionality works in unison with the SOFTRAX RMS revenue recognition functionality. It automates generating billing schedules, generating invoices, and delivering to your customer. It also automates revenue recognition and supports the most complex areas of ASC 606 and IFRS 15 with every billing event.
SOFTRAX RMS provides transparency across billing and revenue recognition over the life of your customer relationship. At any moment, you can review your revenue position, and see whether you are in a contract asset or a liability. With SOFTRAX RMS, there’s no need for two separate systems for billing and revenue recognition. And, there’s no need for juggling multiple spreadsheets and expensive customizations. Let’s take a closer look at the four billing models.
The subscription billing model occurs when you bill your customer a fixed, recurring amount at an agreed interval for a subscription-based product or service. This model is popular in SaaS computing industries for customer access to a service. With SOFTRAX RMS, you can configure each customer’s billing dates, invoice frequency, and preferred delivery method to meet your most complex subscription billing needs. You can bill for one-time fees, such as activation fees, and recurring fees based a set fee, the number of users, or quantity purchased. For each type of fee or product, SOFTRAX RMS enables you to configure, and fully automate, how revenue is recognized. For example, you can recognize an activation fee at a point-in-time but recognize SaaS fees invoiced in advance for the year ratably over the duration of the subscription.
The consumption, or usage-based, billing model occurs when you bill your customer based on their usage of your product or service. It’s popular in cloud computing and utility industries. You can again fully configure the frequency and billing dates. In addition, you can easily scale and adjust your rates using minimums, tiering, and overages. The RMS revenue recognition functionality automatically tracks the amount of goods and services used in each cycle and recognizes revenue accordingly. You can automatically manage variable consideration to recognize revenue based on what you expect your customer to consume and update it over time.
The one-time billing model is a legacy powerhouse. You invoice your customer once for a product or service. How you define your automated revenue recognition policies determines how you recognize that revenue as you deliver the service or product over time. Do you bill before you perform the service? Or do you deliver the goods and then invoice? No problem. Revenue is deferred or recognized as billed or unbilled to suit your needs.
The milestone billing model is often associated with construction or project-driven industries. You invoice your customer at agreed-upon events or deliverables according to your contract. The SOFTRAX RMS billing functionality schedules your invoices according to the terms and total value of your contract. When you indicate that a milestone is reached, the invoice is automatically generated. As with other billing models, revenue recognition is then automatically triggered and fully automated with our powerful policy engine.
Are you ready to explore how YOU can use SOFTRAX RMS for your billing and revenue recognition? Contact us at sales@softrax.com to schedule a 30-minute consultation.
Billing Manager accommodates the consolidation of charges within a billing cycle. This allows both identical, recurring charges to be combined with variable, milestone, renewal, and other charges to be presented on the same bill, with the option of splitting the bill among multiple billing parties. Each service provided to a customer can have a completely distinct set of attributes, creating organizational flexibility when selling and delivering products. Billing Manager also provides customers with a streamlined bill presentation of all services.
SOFTRAX Contract Renewal Management Software lets you track the status of every contract through the renewal process. This reduces revenue loss and leakage and allows quick access to the data needed for timely renewals. You can instantly see historical and future views of deferred and recognized revenue streams and easily follow new dollars, churn, and total renewal base for better insight into renewal revenue.
SOFTRAX contract renewal management is a component of the SOFTRAX Revenue Management System, a cloud-based SaaS solution that enables the best in contract renewal management software. This robust solution is designed to easily integrate into existing systems to solve challenges specific to billing and contract renewal management.
Have upcoming renewals at your fingertips in seconds.
Easily generate pricing at the product-, contract-term, or reset-date level.
Seamless co-termination, which enables the proration of subscriptions, setting a single renewal date.
Design contract renewal by date, product, location, or customer.
Automate the key contract renewal processes, saving time and resources.
Extensive reporting allows a detailed look into the lifecycle of every contract.
“Through an outstanding collaborative effort with the SOFTRAX team, we improved our use of the SOFTRAX features and functionality that will help Epicor grow and scale its install base and recurring billing.”
“SOFTRAX offers the flexibility to handle the various forms of complex billing and revenue recognition we require. SOFTRAX helps us maintain our controls at a system level, keep close times short, and avoid a need to scale human resources as our business has grown.”
“SOFTRAX is a win-win for us. We saw significant efficiency improvements within two weeks of go-live. We have dramatically increased our transaction volume through organic and M&A related growth without a need for increased headcount.”
“SOFTRAX helped us capture an opportunity to operationalize the new revenue recognition guidance with automation that advanced our existing process.”