4 ways NetSuite ARM is changing revenue recognition

Adnan Patel
| 1/21/2022
4 ways NetSuite ARM is changing revenue recognition

NetSuite ERP can help you overcome new revenue recognition guidelines.

Business volatility may have you worried about your financial security. Revenue management can often be set aside if you’re running a steady production operation, but like most businesses, you aren’t.

You have to manage your finances, all while coming up with a revenue recognition plan that generates more business. With ever-changing ASC 606 requirements, forming a solid plan is crucial.

Keeping up with the latest regulations can be challenging, but it’s important that your revenues are recognized and accurately accounted for. If not, you could be putting your business at risk.

Applying revenue management strategy with updated ASC 606 guidelines doesn’t have to be intimidating. You can upgrade your revenue recognition module within NetSuite to fit your needs.

Whether an equal amount of revenue needs to be recognized at fixed intervals, or different amounts need to be recognized at different intervals, you can do this at the click of a button with NetSuite ERP.

The NetSuite Advanced Revenue Management (ARM) module functions on two fundamentals – revenue recognition and fair pricing. Here are four ways NetSuite ARM can help your business grow while also staying compliant.

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Revenue adjustments can be a breeze.

You may be accustomed to manual revenue adjustment processes. They take a lot of time and you run the risk of human error, which can cause major problems in reporting your revenue.

Within your NetSuite ARM module, revenue adjustments are easier. If the estimated value of your plan happens to change due to physical parameters midway through revenue recognition, NetSuite ARM can easily make adjustments without affecting any of your other results. In the end, you can get a lot more accurate results – with less of a hassle.

Your team can access user information seamlessly with NetSuite ARM.

Right now you’re probably stuck with basic approvals within the fair pricing system. Employees have to jump through hoops to view the user information they need.

If you’re needing a more complex solution with more customizations, your NetSuite ARM module can apply custom business rules. That way, your team can easily access and make necessary changes to business records and user information. They will also be able to retain specialized knowledge – even when employees transition out.

Revenue arrangements can be merged to a single, customizable dashboard.

In the past, you may have been sifting through individual files and reports to view fair value information from your customers – which is a waste of your time and money.

Merging revenue agreements allows proper control of the fair value of returns to be generated. Within the NetSuite ARM module, you can view all changes in a single dashboard with a set revenue recognition value.

You can forecast project revenue with impeccable accuracy.

Are you struggling with inaccurate results in project revenue forecasting? These results can be critical for making the right decisions when it comes to your general ledger.

The good news is that the new NetSuite revenue recognition module is a complete overhaul of the original fair pricing system. NetSuite ARM can manage multielement arrangements, which is one of the primary focuses of ASC 606 guidelines.

Within the new module, you can handle customer contracts and exceptions, such as returns. Automation makes this task simple, whereas in the past it could’ve been a pain.

Depend on a NetSuite implementation partner that goes the distance.

We’ve got an implementation model for every need. And when you need continued NetSuite support, you'll still be talking to the same Crowe team you started with.

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Save time and stay compliant with the NetSuite ARM module.

Staying compliant with your revenue management strategy doesn’t have to be overwhelming. You can improve your current processes without any extra money or effort.

By automating revenue recognition calculation and reporting dashboards for continual monitoring, the solution can help your finance teams increase productivity, visibility, accuracy, and compliance.

The NetSuite ARM module is available for all industries, is compliant with accounting standards, and can provide:

  • Versatility to manage revenue streams
  • Detailed reporting
  • Fair value pricing models
  • Structure to comply with changing ASC 605, ASC 606, and IFRS 15 requirements

Crowe can help you transform your revenue recognition program and leave tedious processes in the past.

We’ve got a revenue recognition solution for every need.
And when you need continued NetSuite support, you'll still be talking to the same Crowe team you started with.

Curious about next steps?

For more guidance on how to add this module to your NetSuite ERP, reach out to one of our experienced technology consultants.
Adnan Patel
Adnan Patel
Principal, Consulting
Steven Parker
Steven Parker
Managing Director, Consulting
Alejandro Alvarez
Alejandro Alvarez