1. 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.

2. The Five Step Model for Revenue Recognition1 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]

3. 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

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

5. SOLUTION DEMONSTRATION

6. 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)

7. Q&A

8. THANK YOU

9. SCREEN SHOTS

10. Identify the contract with a customer1
Identify the contract with a customer

12. Identify the performance obligations in the contract2
Identify the performance obligations in the contract

13. 3 4 Determine the transaction price
Allocate the transaction price to the performance obligations

14. 5
Recognize revenue when (or as) the entity satisfies a performance obligation

15. OPTIONAL SCREEN SHOTS