Introducing NetSuite Advanced Revenue Management (ARM)
Revenue recognition and management are significant for any growing business. It gets complicated by quickly changing finance benchmarks and standards. Automating financial operations with other departments will allow real-time updates and insights, as well as ensuring regulatory compliance . ERP systems like Oracle, SAP, and Microsoft Dynamics GPmay not be up to keeping pace with these changes. Hence, businesses lack real-time data visibility, risk of errors, and non-compliance.
If you are facing revenue recognition challenges with your current ERP system, NetSuite offers an advanced module to manage them. Advanced Revenue Management (ARM) is the latest module from NetSuite. NetSuite ARM module automates your revenue recognition processes and automatically updates to keep pace with the latest compliance standards.
How NetSuite ARM module streamlines revenue process?
NetSuite is the number one cloud-ERP solution for most SMBs (small-to-medium businesses). NetSuite ARM module supports all the revenue compliance standards, including ASC 605, 606, and IFRS 15. It supports scalability. It automates, revenue forecasting, allocation, recognition, reclassification, and auditing through a rule-based framework.
Our NetSuite Practice Director, Scott Jorgensen at Amzur Technologies has been working in this space for over 20 years. He has been on every side of the process.
He says that Accounting Standards Codification (ASC) 606 has brought a new revenue recognition standard to both public and private companies and that many may not have adequate systems to support the complexities of this new standard.
“With NetSuite’s ARM and Multi-Book solutions (also from NetSuite), companies can support their transition to the new standard’s requirements. It can support dimensional and date-driven standalone selling price (SSP) for revenue allocation; automated month-end close processes; support the foreign currency and unbilled adjustments, etc.,” said Scott Jorgensen.
NetSuite ARM Modules
- Revenue arrangements: It records details of customer performance obligations for purposes of revenue allocation and recognition. NetSuite ARM module automatically creates revenue arrangements from earlier approved sales transactions.
- Revenue elements: NetSuite ARM stores revenue recognition information that corresponds to individual lines in a source.
- Revenue recognition rules: It stores how revenue stream is recognized per item. The rules include recognition method, amount source, start & end date sources.
- Revenue recognition plans: These plans are derived from revenue recognition rules. NetSuite ARM forecasts and supplies revenue recognition information for journal entries.
NetSuite ARM supports sales transactions occur at a single point in time or across different milestones.
NetSuite ARM Integration
If you are using any Oracle Financials, SAP R/3, or any other third-party ERP system, you can integrate NetSuite ARM module effortlessly. If you already have a NetSuite ERP, you can add on the ARM.