Ease ASC 606 compliance revenue recognition requirements with Oracle | NetSuite solutions from InnoVergent
In December 2017, the most significant changes to accounting standards by FASB (the Financial Accounting Standards Board) in decades went into effect for public companies, with deadlines for privates companies not far behind. While it’s easy to become overwhelmed at how to comply, Oracle | NetSuite simplifies your ASC 606 compliance efforts by managing seamless billing processes all the way through revenue recognition.
By the deadlines, revenue must be recognized on delivery of the performance obligations, defined in five steps.
- Identify the contract with a customer.
- Identify the contract performance obligations.
- Determine transaction price.
- Allocate transaction price to performance obligations.
- Recognize revenue when performance obligation is satisfied.
Easing ASC 606 Compliance
ASC 606 has broad-reaching effects that extend beyond accounting processes. Leveraging the revenue recognition automation features within Oracle | NetSuite ensures seamless management and compliance, and allows you to focus time and energy on easing change management impacts of the new regulations. Oracle | NetSuite from InnoVergent eases ASC 606 compliance by:
- Helping companies ensure transparency on public disclosures – an integrated system eases this process by connecting transactions, subscriptions and projects to the billing engine, and seamlessly flowing to financials, with full integration to advanced revenue management.
- Enabling you to run seamless billing and revenue recognition in the cloud – for example, Oracle | NetSuite supports “recipes” which give you the ability to automate how revenue is to be recognized on a contract. Recipes act in a similar fashion to how accounting systems depreciate a fixed asset.
- Providing SuiteBilling, the industry’s first and only comprehensive cloud solution that synchronizes complex processes from order to billing to revenue recognition, all within one system – it unifies both billing and rev rec processes with complete controls and auditability to ease compliance while reducing risk.
Oracle | NetSuite’s Revenue Recognition
Functionality for ASC 606
Source: Oracle | NetSuite
EASE COMPLIANCE WITH ASC 606 REVENUE