ASC 606
ASC 606 will have a significant impact on both the amount and timing of revenue recognition. RevSym allows flexibility to make the judgments and estimates.
Transactions can be grouped together based on a one-time configuration.

Flexible Grouping Rules

Users can easily configure the system for different Grouping rules – based on how they organize their Revenue Contracts. No coding required.

Contract Modifications

We handle the complex cases around Contract Modifications and define the default behavior as per ASC 606. RevSym also allows you to configure the behavior as per your Revenue Policy – Prospective, Cumulative Catch-up, or a Separate Contract.

Collectability Rules                         

Configure collectability rules to hold back revenue.

Once revenue contracts are created, the elements in the deal can be assigned to performance obligations which will drive revenue release rules.

Rev Rec Rules

Configure various revenue treatment options on each Obligation – Timing, Release events, etc.

Principal/Agent (Gross/Net)

Organize contracts as pure Agent types and recognize only the Net revenue.

Customer Options

Handle scenarios around sales incentives, customer loyalty programs, discounts, contract renewal options, material right.

Variable consideration includes discounts, credits, rebates, performance bonus, penalties, sales returns, refunds, price concessions, incentives, etc. and it needs to be included as a consideration.

Out-of-box Variable Considerations

Use the default variable considerations and configure key elements like magnitude of constraint, amount, release events etc.

Monitor the Variable Considerations

Track the Variable Consideration estimates through the life of the contract and allow for changes.

Volume Discount                  

Design volume discount policies to promote Customer Loyalty.  Estimate Selling Prices for each tier and record the delta as a Contract Liability.

RevSym can automate the estimation of the standalone selling price(SSP). It can also help arrive at Residual SSP in case the SSP is missing for certain elements.

Estimate Standalone Selling Prices

Calculate Standalone Selling Prices on the standalone Revenue Contracts and based on various stratifications.

Allocate Variable consideration and Discounts

Configure rules to allocate to one performance obligation, multiple performance obligations, whole contract, or certain goods/services only.

Allocate the Transaction Price

Allocate the transaction price to various performance obligations. Handle complexities like Trade-in credits.

Revenue has to be recognized when the performance obligations have been satisfied.

Determine Transfer of Control

Configure performance obligations to dictate revenue recognition.

Rev Rec over time or point in time

Set up Business Event rules to allow Rev Rec over time or immediate and provide clear Revenue Insights on the schedules.

Input vs Output Methods

Determine the best method that reflects the transfer of goods and services to the customer and configure this for every performance obligation.

Certain costs like Commissions need to be capitalized over the life of the contract.

Cost Types

Configure various costs associated with a contract and define accounting treatment.

Cost Capitalization

Commission costs can be set to be amortized over the life of the element.

The goal of a good reporting system is to provide information that better meets the needs of financial statement users.

606 Disclosures          

Disclosure reports for contracts with customers – Disaggregating revenue by type of product, geography, market type etc. Provide clarity on Contract balances, Performance obligations.

Real-time                  

All disclosure reports are designed to report in real-time. This greatly improves the efficiency of the revenue team.

Companies are deciding their ASC 606 Adoption policy. It is one of the two methods – Full Retrospective or Modified Retrospective.

Out-of-box Adoption automation

RevSym supports multiple methodologies to help with the transition to ASC 606.

Dual Accounting and Dual Reporting

RevSym is the only SaaS solution that can provide Dual Guidance reporting and side-by-side comparison.

Reporting                      

Special reporting needs will come into effect during the transition and RevSym provides these reports.

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