Revenue recognition, the right way
Depending on the nature of your business, ASC 606 and IFRS 15 may have a significant impact on your accounting practices. ASC 606, set by the Financial Accounting Standards Board (FASB) outlines a 5-step model to standardize accounting practices. The revenue policy is designed to increase cross-industry uniformity for financial statements. IFRS 15 is the international equivalent of this standard set by the International Accounting Standards Board (IASB).
As per ASC 606 / IFRS 15, the 5 steps to achieve compliance are:
Satisfy ASC 606 / IFRS 15 revenue recognition requirements… and more
RightRev goes beyond automation for compliance to enable scaling companies the ability to operate with agility and flexibility.
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Configurable Revenue Rules
Configure rules for traditional and modern revenue models. Identify performance obligations within revenue contracts & assign proper revenue rules that apply the appropriate revenue treatment for each separate performance obligation in a single revenue contract.
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Event-Based Revenue Recognition
Don’t limit revenue recognition to only bookings or billings; instead, configure unlimited events, such as product delivery, completed milestones, percentage of completion, provisioning, etc.
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SSP Calculation and Analysis
Standalone selling price validation and formula based calculations. Historical analysis of standalone selling prices to automatically determine SSP and apply percentages to Revenue Contract lines.
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Contract Modifications
Automatically group amendments and recalculate revenue without manual intervention.
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Revenue Reporting and Revenue Waterfall
Out of the box reports to fulfill your reporting requirements, plus hundreds of pre-calculated metrics to enable ad-hoc reporting and dashboards. Revenue Waterfall visibility for planned and recognized revenue.
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Journal Entries
RightRev integrates with your ERP to automatically post revenue Journal Entries to your General Ledger daily or periodically based on your business needs. You have the ability to defer or release revenue automatically and manually.
Revenue you can count on
Achieve accuracy, compliance, and hyper-scale automation.
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Revenue Accuracy
Revenue is the most important number on your financial statements…and it has to be right! Eliminate error-prone processes, align sales and revenue accounting data, and have confidence that your revenue is accurate and compliant.
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Revenue Reporting and Disclosures
Robust revenue reporting and forecasting for planned, unplanned, and recognized revenue help drive strategic insights that create the narrative the CFO can take to the board with confidence.
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Easy Audits
Minimize audit risk by automating revenue recognition. Eliminate manual preparation for audits and rest assured your revenue is traceable. Easily drill down into product, order, quote details from a Revenue Contract.
Don’t be held back by manual processes and system limitations
Problem One
01/Disconnected and Chaotic Spreadsheets
Excel’s lack of robust version control makes it challenging to track changes and safeguard data integrity. It’s time to modernize your approach and streamline ASC 606 revenue recognition. Upgrade to a solution that enhances data accuracy, simplifies compliance, and delivers confidence in an efficient, error-free revenue recognition process.
Problem Two
02/Hacking and Slashing ERPs
Over-customizing outdated ERP systems for the current state that don’t consider future-state needs and changing revenue models is limiting.
Today’s enterprises need to be flexible and use scalable technologies for their future state, whether it’s for hardware, software, services, one-time, subscription, consumption, or a combination.
Problem Three
03/Third-Party System Limitations
Existing solutions struggle to handle large transaction volumes, limiting the speed needed to automate revenue recognition processes and close the books faster. Limited visibility to daily revenue due to time-consuming processes and manual reconciliations creates an incomplete picture that prevents access for key stakeholders to analyze revenue trends and make informed decisions.
Don’t just take our word for it. Read what our customers are saying.
“From the start of our conversations through go-live, the RightRev team has been fully committed to our success and we appreciate the investment they made in us. We challenged the implementation team with some unique requirements, and they came up with solutions for everything we presented.”
“Combining front-end and back-end motions in Salesforce Revenue Cloud and RightRev for automated revenue recognition will optimize our accounting processes for maximum efficiency; saving time, reducing errors, and allowing us to close the books faster.”
“After considering various Revenue Recognition Platforms, we chose RightRev for its ability to handle our complex business needs like allocations, contract modifications, de-bundling of product SKU’s, and SSP Analysis, all of which have proven to be manual and complex tasks to perform.”
