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CIO AND IT

SOFTRAX Revenue Management System for CIOs and IT Professionals

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Optimize IT for Revenue Recognition and Compliance

The introduction of the ASC 606 / IFRS 15 revenue recognition guidelines added additional pressure to IT departments, as companies are expected to recognize revenue in tandem with customer contracts and produce the associated data in reporting. ASC 606 compliance now requires organizations to recognize revenue as value is transferred to the client, often irrespective of the billing process. This creates new challenges as it breaks the fundamental architecture of ERP and legacy systems. This creates a situation where billing fulfillment and revenue recognition systems don’t interact and has caused a significant migration back to spreadsheets.

The IT department is tasked with making these connections and reports happen, despite the complexity of the tasks and the number of resources required. SOFTRAX offers the world’s only system, the SOFTRAX Revenue Management System (RMS), that combines best-in-class automation for one-time, milestone, subscription, consumption, and renewal billing and complex revenue recognition in a single solution. This revenue accounting platform acts as a layer between existing CRM/CPQ and ERP systems to take the burden of reporting and integration from the IT department.

Revenue Management Made Easy

Revenue Management can bog down even the most well-staffed and active IT department, considering all of the facets the functions involves, including the need to:

  • Generate multi-element invoices upfront or on a milestone basis
  • Have custom invoice formats for each line of business, customer type, location, and more
  • Generate renewal invoices according to contractually stipulated pricing terms and conditions, particularly when these vary among clients
  • Support varied pricing models such as fixed-fee, tiers, break points, minimums, discounts, and more. Particularly those that can change in value or term over the course of the contract
  • Establish a recurring schedule for invoices on a perpetual, renewable, or one-time basis according to contract requirements
  • Bill and account for deferred revenue several different ways, including, for example, milestone or percent complete, and handle associated changes or adjustments
  • Handle multiple-element arrangements and perform complex revenue reallocation or carve-outs, potentially dealing with both billed and unbilled revenue
  • Maintain Stand-Alone Selling Price (SSP) in support of allocations and certain contract modifications and combinations. In other words, these companies have living, ongoing contracts with their customers
  • Multi-tenant cloud platform

SOFTRAX can add these functions and more without any extra strain on the IT department.

ASC 606 / IFRS 15 Compliance Made Easy

ASC 606 / IFRS 15 is guidance developed by FASB and the International Accounting Standards Board (IASB) to drive consistency in financial reporting across industries through a five-step model for revenue recognition. Its goal is to create a standard method of recognizing revenue at the contract level for companies in the public, private, and non-profit sectors. The data required to meet the compliance tenets of ASC 606 / IFRS 15 is found in the revenue recognition, billing, and contract systems, meaning that an IT department’s best bet is a system that can automate revenue recognition according to the five steps of the standard. SOFTRAX is well-versed in ASC 606 / IFRS 15 compliance and can automate your reporting on Day One. Our solutions are designed to seamlessly evolve with the changing financial requirements that come with business operational adjustments or compliance modifications, so we will keep you ahead of the game and focused on your core responsibilities.

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ERP System Integration

Many companies use ERP or other financial systems to handle their order-to-cash and order-to-revenue recognition processes. These systems have a strong foundation and are good for a variety of functions, but lack the agility needed in today’s economy. ASC 606 / IFRS 15 and the billing and revenue recognition requirements are too much for most ERP systems to handle, and the company’s IT department is left to fill the gap. Or, there may be a case in which the IT department is asked to integrate a division or acquisition company’s ERP system. In each scenario, SOFTRAX can help by automating key functions, eliminating manual entries, and gathering the right data. Our client, 3M Health Information Systems (3M HIS), a division of 3M Company, and a leader in clinician, revenue cycle, and performance management technology and services for the healthcare industry, needed to integrate a significant and sizeable acquisition that brought new requirements to offer subscription and consumption-based billing. SOFTRAX worked with them to meet these requirements seamlessly.

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Resources

WEBINAR REPLAY

‘Doubtless Revenue Accounting’ and the Subscription Success Checklist

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DATA SHEET

ASC 606 Revenue Recognition Checklist

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CASE STUDY

3M HIS

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BLOG POST

Mitigating the Impact of Subscription Billing with Modern Revenue Management Solutions

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BLOG POST

What is Milestone Billing and Why Automate the Process?

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BLOG POST

The Effects of Recurring Revenue Business Models on Revenue Recognition

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WHITE PAPER

Improving Billing and Revenue Management: A Guide to Getting Off Spreadsheets

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DATA SHEET

SOFTRAX Billing Manager

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CASE STUDY

Scaling Up With A Subscription Licensing Model

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NEW GUIDE AVAILABLE

ASC 606 Revenue Recognition Checklist

Do you know the five steps of ASC 606 and the impact of them on your revenue? The SOFTRAX ASC 606 Checklist can help.

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