SOFTRAX Revenue Management System

The task of managing revenue is fundamental to the successful operation of any company. However, recent events have shaken the back -office infrastructure supporting these processes. Companies are leveraging new consumption and recurring billing models to optimally monetize relationships with their clients. Many have requirements to properly manage the renewal of contracts with existing customers. Simultaneously, companies grapple with new revenue recognition complexity under ASC 606 and IFRS 15 guidance.

The SOFTRAX Revenue Management System is the world’s most sophisticated support for milestone and subscription billing, contract renewal management, and revenue recognition, all in a single multi-tenant cloud application.

Download our data sheet to learn how the SOFTRAX Revenue Management System can be a valuable asset for your company.

ASC 606 Revenue Recognition Checklist

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. SOFTRAX developed the ASC 606 checklist to inform companies of the various components involved in the five steps of ASC 606, so that they have a better understanding of the depth and breadth of reporting considerations.

To understand ASC 606, it is important to recognize its five steps:

  1. Identify the contract.
    This step includes evaluating whether the contract creates enforceable rights and obligations and whether it has commercial substance. Where contract identification can get tricky under ASC 606 is when upgrades or the chance to buy additional products / services are included.
  2. Identify the performance obligations.
    Performance obligations are the promises of a good or service provided to a customer. With complicated contracts, companies need to define performance obligations carefully, making sure that the each good or service that can stand on its own is in its own performance obligation, for example.
  3. Determine the transaction price.
    This involves estimating the net revenue expected for each contract term, but this price can be difficult to determine because of rebates or discounts.
  4. Allocate the transaction price.
    The objective is for an entity to allocate the transaction price to each performance obligation (or distinct good or service) in an amount that depicts the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer.
  5. Recognize revenue when or as the entity satisfies a performance obligation.
    This step determines that a good or service is transferred when the customer obtains control.

Companies then need to put these steps into the context of their company and industry. Although ASC 606 is straightforward, it can vary from past accounting practices. Companies implementing ASC 606 may find disparities with their previous practices that can affect the bottom line, and it is important that they understand all components of the ASC 606 landscape.

Consumption Billing

Consumption Billing Simplified 

Consumption Billing is transforming the customer experience across a number of industries, and SOFTRAX allows you to realize the gains in a way that is seamless and that supports both simple and complex billing models. 

Automate Consumption Billing 

SOFTRAX Billing Manager provides the ability to automate and easily monitor all functions of consumption billing, including pricing tiers, usage patterns, and overages.  

Easy Contract Management

Contract details are the key to successful consumption and usage-based billing, and the SOFTRAX Billing Manager organizes those details, so you remain on schedule.

A Variety of Pricing Models

The SOFTRAX Billing Manager allows you to easily deploy cumulative and band-tiered pricing.

Consumption Billing with Revenue Recognition and Compliance 

View the industry’s only platform that joins revenue recognition and consumption billing capabilities and provides easy reporting for ASC 606 / IFRS 15. You have the full view and power of your billing and revenue data in one system.

Download the PDF to learn more about SOFTRAX Consumption Billing.

SOFTRAX Billing Manager

Cloud-based Revenue Management for Complex Billing and Revenue Recognition

The rise of recurring and consumption billing, new regulations under ASC 606 and IFRS 15, and organic and inorganic growth are all pushing existing back-office systems to their limit. This has led to a step back in automation, with customizations, spreadsheets, and other workarounds proliferating through many organizations. This, in turn, has led, not only to inefficiency through lack of automation, but also real risk of missed revenue, audit comment letters, and even the need to restate revenue.

The SOFTRAX Billing Manager is a component of the SOFTRAX Revenue Management System (RMS). This system integrates order management, multi-form billing, contract renewal management, and powerful revenue recognition in a single, multi-tenant, cloud application designed to serve as a layer between CRM/CPQ and ERP systems. The SOFTRAX Billing Manager supports one-time, milestone, renewal, subscription, and consumption billing, ensuring you can bill against any of these models on a single invoice.

SOFTRAX Revenue Manager

The accounting standards ASC 606 and IFRS 15 have created an increase in the complexity of revenue recognition in a number of verticals for companies around the globe. For those already dealing with complex revenue recognition requirements, the need to adopt these standards represents a tremendous compelling event to evaluate existing systems and infrastructure.

New business paradigms, such as the advent and complexity of recurring revenue models, put additional strain on back-office processes and infrastructure.

SOFTRAX Revenue Manager represents a self-contained module that seamlessly integrates with existing systems to act as your revenue subledger. This is the right solution for companies looking to specifically address complex revenue recognition requirements not met by their existing ERP systems. Fill out the form to download product sheet.