SOFTRAX Billing

Subscription Billing and Recurring Billing Software

Subscription billing and recurring billing have transformed modern businesses, and the SOFTRAX Revenue Management System (RMS) offers an innovative solution to enhance this transformation by handling all levels of billing, from simple to complex.

SOFTRAX RMS allows companies to benefit from subscription billing and recurring billing by providing a highly customizable billing platform that gives companies control over billing frequencies, various pricing scenarios, and in-process changes/adjustments. SOFTRAX RMS offers policy-driven templates that allow for easy assignment and automated handling of pricing, invoice frequencies, terms, etc. without manual processes for each transaction set. Companies are also able to automate batch invoice creation and delivery, either with a click of a button or as a scheduled process. SOFTRAX RMS can easily handle credits, voids, pause / resume, product additions and subtractions, and upticks and downticks.

Video Transcript

Now, more than ever, companies are transitioning their pricing and billing models to recurring revenue and subscription billing.

This triggers some of the most complex portions of the ASC 606 and IFRS 15 revenue recognition guidance.

If your company uses a subscription billing model, the SOFTRAX Revenue Management System (or RMS) is the solution to perform your billing while tracking revenue recognition.

The SOFTRAX RMS supports multiple subscription billing models.

Usage or consumption billing enables you to bill your customer based on how much they consumed in the billing period.

In SOFTRAX RMS, you configure usage price books to determine pricing tiers and bands that calculate the amount to invoice each customer. You can also configure minimums or maximums to charge.

When the customer’s usage records are imported into RMS, our automated billing creates the subscription invoice based on the exact usage amount and where it falls in the usage price book. RMS also recognizes the revenue based on the actual quantity consumed.

If you follow the variable consideration guidance, you can configure RMS to automatically pass the estimate of variable consideration from the order management to the revenue recognition. RMS then uses this value in any required proportional allocations that occur against standalone selling price.

Subscription billing that is user-based, quantity-based, or fixed-fee based enables you to charge your customer a fee or unit rate for a set number of units in the billing period.

You can configure whether to automatically renew these subscription items at the end of the term.

You can also configure uplifts to change how much you charge at renewal and configure whether the renewal needs approval before proceeding.

You can choose to automatically notify your customers in advance of the renewal and configure what those renewal notices look like.

Your subscriptions can also include one-time fees, such as activation, hardware, or training fees. You can invoice these fees in full or schedule them over multiple invoices.

With the SOFTRAX RMS powerful policy-driven automation, you can configure and automate the invoicing frequency and format, how and when revenue from subscriptions is recognized, and whether to automatically perform carves and allocations against standalone selling price.

RMS lets you change and amend subscriptions, including pausing and resuming, adding or subtracting products, and issuing credits. You can then process these changes automatically as contract combinations or modifications in your revenue recognition.

You configure your policies once and let automation perform the subscription billing and revenue recognition calculations for you.

For example, a subscription can include a one-time implementation fee, where you recognize the revenue at the point in time when the implementation occurs.

And the subscription can include a yearly quantity-based subscription, where the customer pays in advance for 10 licenses to your service. You can recognize these license fees invoiced in advance for the year ratably over the duration of the subscription.

Are you ready to explore how you can use SOFTRAX RMS for your subscription billing and revenue recognition? Contact us at sales@softrax.com to schedule a 30-minute consultation.

Automate and Innovate All Subscription and Recurring Billing

SOFTRAX RMS deploys easily for simple and complex subscription and recurring billing models and allows for tight integration with revenue recognition processes, including compliance with ASC 606 / IFRS 15. With SOFTRAX RMS, companies can handle change events and run reports tied to key KPIs.

Download the SOFTRAX RMS Billing Data Sheet to learn more.

Subscription and Recurring Billing that Drive Monetization and Growth

POLICY-DRIVEN PROCESSES

SOFTRAX RMS uses policies for processing to reduce tedium in the billing process and significantly reduce the risk for error. SOFTRAX RMS maps all incoming transactions to a policy, and companies can group several mappings in a hierarchy. Doing so enables the powerful policy-driven automation of SOFTRAX RMS.

Scalable Billing Automation

SOFTRAX RMS scales to meet each phase of a company’s subscription billing and recurring billing journey, supporting all pricing models, including fee-based. No matter how complicated a company’s subscription and recurring billing management requirements become, SOFTRAX RMS provides requisite features and functions to support business needs and let them focus on growing their bottom line.

Clear Vision into Subscription Data

SOFTRAX RMS gives insights from cross-system data due to its ability to handle subscription, cloud, and recurring billing as well as corresponding revenue recognition requirements. Through its powerful Analytics, SOFTRAX RMS system offers customized reports, feature-rich dashboards, and KPIs that unify billing and revenue recognition data and are invaluable and absolute musts for companies that have subscription management needs.

Powerful Revenue Recognition & ASC 606 & IFRS 15 Compliance

SOFTRAX RMS provides standard functionality to properly handle the revenue recognition requirements specific to subscription, cloud-based, and recurring billing scenarios. It also handles adherence to the contract modification and combination guidance of ASC 606 and IFRS 15, which is triggered by changes to the subscription. SOFTRAX RMS also allows visibility into net dollar retention and its components as well as MRR and ARR in revenue recognition.

With SOFTRAX RMS, companies can handle any:

The Right Solution for Subscription Billing Software

SUBSCRIPTIONS SIMPLIFIED

Easily deploy simple and complex subscription billing models that meet your business needs.

DYNAMIC CONTRACT MANAGEMENT

Capture changes throughout the contract lifecycle.

Checklist

ASC 606 / IFRS 15

Save time with easy reporting that's ASC 606 and IFRS 15 compliant.

Calculator

REVENUE RECOGNITION

Enjoy revenue recognition capabilities from your subscription billing data — all in one platform.

SUPPORT FOR MULTIPLE CONTRACTS

Have support for multiple types of contracts, including perpetual, renewal, and one-time.

Analytics

POWERFUL DATA

Get insights from cross-system data.

What Clients Say About Our Subscription Billing Management Software

FAQ

Subscription or recurring billing software provides features and functions for contracts that have recurring fees. Stated differently, subscription software supports all scenarios where billing needs to happen over-time based on various factors. This is different from order-based billing scenarios that are point-in-time where a product or service is sold one time, invoiced to completion, and the billing requirements end.

For example, if a contract is signed to provide access to a subscription service over a 12-month period for $120,000 then the subscription billing software will presumably need to provide functionality to invoice $10,000 per month. The situation can become more complex during that 12-month window if there are changes to the contract, such as new service add-ons; modifications to the original services, such as upgrades, downgrades, etc.; or if the contract allows for early termination. Subscription billing software needs to handle all such scenarios, adapting for change and making sure billing is done in conjunction with the contract so that revenue is recognized correctly and that no revenue is lost.

Subscription billing software automates billing processes, allowing a company to manage subscriptions, track recurring payments, and map the timed services against the customer contract. Ideally, this type of software also allows a subscription business to track revenue parallel (yet potentially on a separate schedule according to ASC 606 / IFRS 15 requirements) according to the contract, making reporting and compliance easier.

A subscription or recurring billing software solution allows a company to tie its billing to the customer contract as well as the revenue recognition guidelines that are required by generally accepted accounting principles (GAAP), such as ASC 606 / IFRS 15. Using a subscription or a recurring billing software solution allows a company to streamline its billing, have an eye on customer activity and contracts, tie revenue and billing together, and have a strong revenue management process.

Without an all-in-one subscription billing management platform in place, accounting and finance teams must try to handle the complex requirements in existing ERP, CRM, SFA, and/or GL accounting software tools, which does not usually work well. This can lead to risky, manual, processes done by multiple team members in multiple spreadsheets. Not only does this lead to potential accounting risks, but it also can materially impact cash flows and customer experience/churn issues if recurring invoices cannot be provided to customers on a timely and accurate basis repeatedly.

In short, any company that offers B2B products or services will benefit from the SOFTRAX Revenue Management System (RMS). SOFTRAX RMS customers span numerous industries such as SaaS, manufacturing, professional service providers, fintech, media and entertainment, IoT, and others.

Rather than focusing on industries, SOFTRAX RMS aims to solve the complex business requirements that face any company that provides a recurring product/service regardless of industry.

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