Revenue recognition is a crucial aspect of accounting that helps businesses accurately report their financial performance. However, revenue recognition can be complex, especially for businesses with complex revenue models.

NetSuite Advanced Revenue Recognition (NetSuite ARM) feature automates revenue forecasting, allocation, recognition, reclassification, deferral, and auditing through a rule-based event handling framework, which is compliant with ASC 606 standards. NetSuite ARM is designed to simplify the complex processes of revenue recognition for businesses of all sizes.

Key Capabilities of NetSuite Advanced Revenue Management

Multiple Revenue Models

The software automates the process of recognizing revenue by identifying the performance obligations, allocating the transaction price, and recognizing revenue when the obligations are fulfilled. It supports multiple revenue models, including subscription-based, project-based, and usage-based revenue models.

Flexible Revenue Recognition Capabilities

One of the key features of NetSuite Advanced Revenue Management is its flexibility. The software can be customized to suit the specific needs of a business. It can be configured to recognize revenue in accordance with the business’s revenue recognition policies and accounting standards. You can also:

  • Recognize revenue using a separate process from billing.
  • Use an integrated workflow for simultaneous revenue recognition and billing.
  • Meet global business management needs with multi-currency and multi-subsidiary intelligence.
  • Manage one-off and recurring billing processes for subscription and maintenance-based revenue streams.

This provides businesses with the ability to monitor revenue recognition progress, identify potential issues, and take corrective action as necessary.

Support for Key Revenue Recognition Rules

NetSuite Advanced Revenue Recognition simplifies the revenue recognition process by automating the process. It ensures that revenue is recognized in accordance with the latest accounting standards, including ASC 606 and IFRS 15. This eliminates the need for manual calculations, which can be time-consuming and prone to errors. With automated revenue recognition calculation and reporting dashboards for continual monitoring in NetSuite, the solution can help your finance teams increase productivity, accuracy, visibility, and compliance.

NetSuite Advanced Revenue Recognition Process

NetSuite ARM Process

Our ARM Expertise

STREAMS has certified NetSuite ARM Consultants with in-depth experience of implementing it for private and public companies. Our consultants have designed solutions when the data (order, fulfillment, etc.) from revenue is synched from external systems (Salesforce, OpenAir, Online Shopping Platforms, etc.) to NetSuite to provide accurate revenue reporting.

Read Also: Month and Year End Financial Closure in NetSuite

Do you have more questions regarding Advanced Revenue Management, and NetSuite financial system? Drop your query and unlock the full potential of your business with the help of our NetSuite experts. We at STREAMS, implement, customize, integrate, and administrate NetSuite accounts and support in utilizing its whole productivity and consequently increasing revenue.