ERP Software Logo1

Microsoft Dynamics vendors provide comparisons and opinions to professionals in the ERP/Accounting software selection process

 
 

Technology Management Concepts

Revenue Recognition for Software Companies in Dynamics GP 10.0


Email | Print

Manage your Revenue Recognition and Contract Renewals with Dynamics GP 10.0

Microsoft Dynamics GP 10.0 Advanced Management with Revenue and Expense Deferrals and Contract Management. 

Accurately managing the complexities in properly recognizing revenues and expenses is important for any company, but it is critical for companies that sell software and related services.  With Dynamics GP 10.0 Advanced Management, you can be confident that your ERP system can meet both your own internal and regulatory requirements for the accurate recognition of software-related revenues, and manage the renewal process with ease and efficiency.

With Dynamics GP 10.0, you can eliminate the use of spreadsheets and other external systems, and process all of the transactions related to the sale of software products and their related services in just a single step.  The creation of the renewal contract for the annual enhancement, and the deferral of the revenue into the proper future periods can all be accomplished at the time of the original invoicing.  You no longer have to create manual reminders to create monthly journal entries, Dynamics GP handles all of the accounting, properly and accurately, the first time.

Sales activity reporting can be generated to reflect both GAAP accounting (compliant with SOX) with revenue recognition deferred to future periods, as well as sales reports that place all activity in the current period, useful for monitoring the effectiveness of your sales team and for commission purposes.

v  Revenue Recognition and Contract Management

v  Deferred Revenue and Expenses

v  Contract Renewals

v  Advanced Invoicing

v  Customer-specific Pricing

v  Sales Forecasting and Analysis

v  GAAP & Regulatory Compliance

v  Complete integration with Dynamics GP Financials

When considering which ERP Software you should be implementing, be sure that the new system will handle all of your complex business requirements.

By TMC, Los Angeles Dynamics GP Partner

Revenue Recognition for Software Companies in Dynamics GP 10.0

3 Responses to “Revenue Recognition for Software Companies in Dynamics GP 10.0”

  1. goods says:

    Thank you so much for providing individuals with such a brilliant chance to read in detail from this site. It’s always very terrific and as well , stuffed with a good time for me and my office co-workers to visit your blog no less than 3 times in 7 days to study the newest guides you will have. Of course, I’m just always impressed with your striking concepts you give. Certain 4 points in this posting are indeed the very best I’ve ever had.

  2. Hi Brenda,

    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.