Excellent points about the complexity of revenue, billing and contract management for software companies. (These complexities also exist for technology companies in general – not just software companies.) I would also agree that Microsoft Dynamics GP 10.0 has terrific core accounting functionality for these companies.

However, my experience has shown that there are a significant number of technology companies who need substantially more functionality in these areas than what Dynamics GP 10.0 offers.

In the area of revenue recognition, here are just a few examples of this: a) the ability to handle revenue models other than straight line amortization; b) support for carve-outs; or, 3) the ability to provide a high level of compliance support. Business model support is often insufficient for software and technology companies as well – for example, in instances where system support for the company transaction flow must include channel sell-through, website integration, customer activation, or more complex enterprise agreement relationship management. GP 10.0 may also fall short when there is substantial contractual and billing complexity, including combinations of milestones, recurring billings, usage based billings, royalty billings, rebates, and/or complete separation of revenue from billing.

Tensoft’s Revenue Cycle Management (RCM) has won quite a few converts among Dynamics GP users and partners in the software and technology industries. This product integrates seamlessly to Dynamics GP out-of-the-box, so it’s helping many of these companies who’ve found Dynamics GP alone to be lacking.