Does your company have complex contracts with customers? Are you looking for deep financial and operational insights and a way to automatically tackle subscription management? What about a way to comply with new accounting standards surrounding revenue recognition, reallocating revenue, and expense amortization?
What if I told you that there’s one tool that can do it all? Today, we’re taking you on a deep dive of Sage Intacct’s Contract Revenue Management module by sharing the top ten capabilities and features that you should know.
1.Automates the revenue reallocation.
Whenever you create a contract in Sage Intacct, the revenue recognition schedule is automatically calculated. Sage Intacct’s Contract Revenue Management module takes this a step further. Now, you can easily make updates to active contracts and the tool will automatically reallocate the revenue—including retroactive reallocation to closed periods. This streamlined approach to reallocation saves you serious time and headache when compared to a spreadsheet approach.
2.Template-based revenue recognition.
This module allows companies to customize and define templates based on their specific business needs. Whether you’re using straight-line or usage-based revenue recognition schedules, the process is totally separate from billing. This allows companies to bill their customer at whatever frequency they want while maintaining a separate revenue recognition schedule independent of billing.
3.Supports usage-based revenue recognition.
Sage Intacct’s Contract Revenue Management module gives companies the ability to recognize revenue based on actual customers usage. If your contract is based on how much data a customer is using, for example, simply enter the data that a customer used in a certain period of time and recognize the revenue based on that actual amount.
4.It ensures compliance with new revenue recognition guidelines.
As we mentioned in a previous blog post, this new module allows finance teams to essentially put ASC 606 on autopilot. There are a few ways it accomplishes this. First, the tool allocates revenue based on the latest accounting rules. Second, it is able to recognize revenue across multi-element arrangements and provide an audit trail for MEA activity. Companies can specify effective dates for MEA execution and execute MEA allocations multiple times. Finally, the module can easily integrate order changes into a single contract.
5.Real-time access to revenue details.
Looking to drill down into the details of a particular contract? Simply pull up any contract and find all the information you need within the contract itself. By housing all of the details in one place, Sage Intacct is helping users save time and hassle. There’s no reason to be digging around within a system to find exactly what you’re looking for.
6.Provides expense management.
As you know, there are a few expense requirements associated with ASC 606 for tracking and amortizing expenses related to contracts. This module provides a full expense management solution that automates the amortization of contract expenses. Similar to the revenue side, it also automatically updates the amortization schedule when you make changes to a contract. You can even create expense amortization templates which can be identical or different from the revenue terms. This allows users to quickly access recognized expenses and expenses to be recognized by providing expense amortization details at the contract or contract line level.
7.Dual reporting methods.
A really nice-to-have feature of Sage Intacct’s Contract Revenue Management module is its dual reporting method. The system leverages dual book entry to track revenue recognition and expenses between the two recognition methods—ASC 605 and ASC 606. This allows companies to have real-time access to the dual treatment of transactions under the old and new rules. This feature is incredibly convenient for historical reporting!
8.Providing revenue visibility with complete reporting.
Sage Intacct’s Contract Revenue Management module gives you full revenue and expense visibility. Its powerful reporting capabilities allow you to see individual invoices, billing schedules, contract details, contract line details, and more. You’ll have complete access to transaction details and full visibility into your contracts, contract revenue, and contract expenses. You can also use the module for forecast reporting on your billing, cash, and different levels of revenue and expense forecasting.
9.Pre-built, customizable dashboards for SaaS companies.
If you’re working within a software company, this feature is for you. The module offers a pre-built digital board book that pulls critical metrics for SaaS companies. Now, you can report on key SaaS KPIs like Churn, Customer Lifetime Value, CMMR, and CAC in real-time.
10.Ensures complete compliance with ASC 606.
If you’re using Sage Intacct’s Contract Revenue Management module, you are fully compliant with ASC 606. Companies can easily set up a compliance checklist workflow to maintain an audit trail sign-off. This ensures compliance is maintained throughout the entirety of the revenue management process.
As you can see, Sage Intacct’s Contract Revenue Management module is a complex, multi-faceted tool. To get the most of it, you’ll need deep training on the tool or a partner who can help you extract its full value. Get in touch today to see how we can help you with Sage Intacct’s Contract Management module and more.