ADVANCED REVENUE MANAGEMENT (ARM) FOR ASC 606 COMPLIANCE NetSuite is the undisputed Cloud ERP leader with more customers running on its cloud ERP platform than any other provider. Netsuite is uniquely positioned to support small start ups through to some of the largest global enterprises. As the #1 Netsuite doesn’t just “talk the talk” of cloud. It “walks the walk” with well over a decade of experience in providing 1000’s of customers with a reliable, scalable, functional, mobile future proof solutions.

The Five Step Model for Revenue Recognition 1 2 3 4 5 Identify the contract with a customer Identify the performance obligations in the contract Determine the transaction price Allocate the transaction price to the performance obligations Recognize revenue when (or as) the entity satisfies a performance obligation [The 5 step model, one thing that all of the audit firms agree on are the 5 steps]

NetSuite Revenue Accounting – Automated Process Revenue Arrangement Revenue Element Allocation of Revenue Across Elements Revenue Plan Revenue Rule Contract Performance Obligations Revenue Allocation Element: Performance Obligations Created from Sales Contract, Project, or Invoice Plan: application of a revenue rule to an element. Includes actual and forecasted. Rule: Ratable over term, Fulfillment, Billing, % complete Rules Applied for GL impact Basis for Revenue Recognition

Billing and Revenue Recognition Workflow SALES ORDER INVOICE ITEMS BILLING SCHEDULE GENERAL LEDGER ENTRIES REVENUE ARRANGEMENT REVENUE ELEMENTS REVENUE PLANS GENERAL LEDGER ENTRIES

SOLUTION DEMONSTRATION

NETSUITE’S REVENUE RECOGNITION FOR ASC 606 Compliant with today’s and future revenue standards for SaaS, Software, and Hardware sales Ratable or event based RR (i.e. fulfillment, invoice) Record Unbilled Receivables (e.g. % complete RR for services) Allocate revenue across elements on order(s) Dynamic fair value pricing engine Automate month-end Deferred Revenue re-class for FX Adjustment by element Revenue plans can be amended, put on hold, and caught up Real-time revenue reporting (Deferred Revenue Waterfall, Deferred Revenue Rollforward)

Q&A

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SCREEN SHOTS

Identify the contract with a customer 1 Identify the contract with a customer

Identify the performance obligations in the contract 2 Identify the performance obligations in the contract

3 4 Determine the transaction price Allocate the transaction price to the performance obligations

5 Recognize revenue when (or as) the entity satisfies a performance obligation

OPTIONAL SCREEN SHOTS