The SOFTRAX Revenue Management System allows for automation of order processing, billing, revenue recognition, and other processes.
Large-scale manufacturers and construction companies can reduce team reliance on manual entries and spreadsheets, which can be time-consuming, error-prone, and susceptible to compliance risk.
Large-scale manufacturers and construction companies typically use milestone billing, including milestone schedules that can become quite complex.
SOFTRAX draws on 25 years of expertise in the automation of complex milestone billing and bill schedules, providing one of the most robust solutions available.
Large-scale manufacturing and construction companies have special considerations under the ASC 606 standard. Both industries often recognize revenue on a percent of completion basis or proportional to the spend of costs related to the overall cost budget of the project. Many companies desire to budget a month-by-month projection of the costs spent, and therefore projected revenue earned.
Companies then seek to capture the actual cost spent in the current period, thereby driving recognition of revenue for the period, and potentially including a change to the remaining cost-spend projections. SOFTRAX automates these processes via a unique set of features designed specifically for these scenarios.
As parts of the project are completed, SOFTRAX’s proprietary template engine automatically handles the corresponding billing and revenue recognition events, acting as a subledger to the general ledger and automatically constructing summary journal entries that are fed back to the general ledger. The contract asset and liability disclosure requirements within ASC 606 necessitate the reporting of revenue that has been earned but not billed, as well as revenue that has been billed but not earned.
By hosting both billing and revenue recognition in a single, multi-tenant application, SOFTRAX automatically constructs this disclosure. SOFTRAX understands both the model and the intricacies of ASC 606, allowing us to keep clients focusing on their core businesses and off spreadsheets.
Do you know the five steps of ASC 606 and the impact of them on your revenue? The SOFTRAX ASC 606 Checklist can help.