Revenue recognition is considered as one of the important feature in Cloud ERP Software for any company that either sells contracts or provide services that are strongly needed to be fulfilled throughout the year. It is always suggested to recognize revenue when the work is completed, not when bills are sent and paid. Due to this, it helps to keep a strict eye on your business performance.
There are specific industries where revenue recognition is especially important and taken as the core part. For instance, let’s take an example of an alarm company that sells a three year contract and is paid the first year up front. There is revenue that comes in at the time the contract was signed but you can’t recognize all that revenue at once but make a projection of the revenue, because you are really being paid for 12 months. So here comes the need of an efficient ERP Software into your system to define when the revenue will be recognized. Alrasmyat Cloud ERP Software will help you in this matter to determine and optimize the revenue.
According the new market needs, Alrasmyat Cloud ERP Software is doing a great job and helping its potential customers to make their operations better. One of the core feature of this set of software are as follows;
- Deferred Revenue Administration
An efficient way is to create revenue recognition templates and assign them to line items on revenue transactions. This set of template can specify the starting date, the method of recognition and percentage to recognize immediately, counting the number of occurrences, and time within the period to generate transactions. This software can be linked to accounts, sub-accounts, and inventory components.
- Component based Revenue Recognition
When you are doing component based revenue recognition, it is advised to divide inventory items into component parts to apply different deferrals within a single inventory item. Alrasmyat Cloud ERP Software uses this feature to automate revenue recognition and take your business into the new horizon of success while improving the overall efficiency.
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