Streamline. Automate. Comply.

NetSuite Revenue
Management

Revenue management can no longer live inspreadsheets. NetSuite’s financials software
simplifies the complexities of evolving revenue
recognition mandates, no matter if a saleencompasses a single performance obligation, aseries of obligations spanning a time period, ordiverse obligations in a bundle. The results enable
the automation of revenue policy for compliance,
real-time revenue intelligence and actionable data.

Key Benefits• Accounting teams can focus on exceptions to thepolicy, eliminating hours spent managing andrecording revenue, and reducing the hours/days
to close.
• Comply with industry guidance and mandates
for today and tomorrow. NetSuite Revenue
Management works seamlessly with Multi-Book
Accounting to account for a single transaction
under multiple standards.
• Analyze actual revenue impacts as well as forecaststhat dynamically respond to actual postings to givean updated expected revenue picture for future
periods—all with the ability to drill back into thesource sales document or transaction.

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Revenue Recognition
Sales agreements can include a combinationof products and services (e.g. a security systemwith installation and monitoring) or a series ofdeliverables (e.g. consulting services). Whether
an equal amount of revenue must be recognizedat fixed intervals or different amounts must berecognized at different intervals, NetSuite Revenue
Management enables you to schedule revenue tobe recognized at the proper time automatically.
• Revenue Policy Automation – Easily manage
exceptions as they arise by holding revenue,
updating revenue recognition schedules or
making other changes.
• Automate Planning – Automatically schedulerevenue to recognize in the appropriate period
based on rules. Re-usable Revenue Rules govern
the triggers, the creation and commencement ofa Revenue Plan associated to a sales transaction,
as well as the plan duration.

© Oracle | Terms of Use and Privacy• Automate Unbilled Revenue Recording – Record
unbilled revenue automatically by identifying
revenue elements without corresponding bills,saving time during closing.
• Support Multi-Currency Transactions –Ensure that fluctuations in exchange rates areappropriately accounted for in each period.
• Manage Balance Sheet Accounts – Automaticallyadjust contract liability (deferred revenue) andcontract asset balances based on real-timebillings and revenue data.
• View Financials in Real-Time – Automatically
post to the general ledger from Revenue Plans—on your schedule, as frequently as you wish.
• Flexible Forecasting – Provide flexible forecastingto accommodate revenue projection updates
based on real-time business events, suchas project plan updates or planned revenue
withheld to a future period.

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Multiple Performance Obligations
Contracts with multiple components delivered atdifferent points in time require special attention,
as revenue recognition depends on how andwhen each component is delivered. NetSuite’srobust capabilities provide configurable revenue
schedules for even the most complex agreements.
• Flexible Revenue Contracts – Drive an agile andaccurate view of the revenue contract. Revenue
Arrangements are containers for Revenue
Elements (performance obligations). Elements
have individual attributes such as Revenue Rule,revenue plan start and end dates, and revenue
allocated amount. Revenue Elements can bemerged across linked orders or contracts, orsplit into multiple Arrangements, to accuratelyrepresent the revenue contract regardless of how
the revenue source transactions are managed
and billed.

Managing Complex Allocations
Managing revenue correctly when products and/or services are delivered over multiple accounting
periods can be challenging. Industry standards
dictate how contract prices must be allocatedbased on what is being delivered when. NetSuite’scomprehensive allocation features enablesystematic compliance with ASC 606/IFRS 15.
• Dynamic Standalone Selling Price – Define
the Standalone Selling Price (SSP) as either aconstant or a dynamic formula. Formulas canbe based on information within other revenueelements—for example, an SSP for support
based on a percentage of licenses within thatcontract. Item Revenue Groups allow itemswith identical requirements to have the sameStandalone Selling Price, eliminating duplication.

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The ability to add user defined dimensions allows
a single item (or group of items) to have multiple
SSPs and meet stratification requirements.
• Powerful Allocation Calculator – Leverage
Standalone Selling Prices to automaticallyallocate arrangement consideration across allelements within the Arrangement—including
support for ASC 606/IFRS 15 standards.

Revenue Recognition for All Industries
Companies have traditionally been required tofollow industry specific guidance for revenue
generating activities relating to the licensing,selling, leasing, hosting or marketing of products
and services.
These arrangements encompass multipledeliverables or elements: software and any
combination of specified or unspecified
enhancements, post-contract customer support,
services and additional licenses. Packaged software
arrangements with multiple elements often havedifferent dates of delivery (i.e. product and support),
requiring accounting departments to recognize
and defer revenue amounts appropriately. ASC
606/IFRS 15 includes similar principles with theimpact extending beyond the industries that havetraditionally fallen under the guidance.
• Support Revenue Recognition Over Time –Recognize revenue over time based on output(e.g. units produced, hours delivered) or input(e.g. resources consumed, costs incurred).
• Support Percentage-of-Completion – Accounting
Support revenue accounting for projects leveraging
percentage-of completion mechanisms.

Page 3• Support Event Driven Revenue Plans –Align revenue recognition with event triggers—
for example the fulfillment of an item, thegeneration of a bill against an order, or work
beginning on a project. A single performanceobligation can be associated with multiple plansin order to support partial fulfillments or billings.

Revenue Recognition in Accordance With
Multiple Accounting Standards
The globalization of business today is poweredby several factors, including global capital
markets, foreign direct investment and economic
interdependence. In order to report financial results
accurately within revenue recognition mandates
based on multiple accounting standards (e.g.
GAAP, IFRS), accounting departments worldwide
can leverage a powerful multi-book accounting
engine that can record and post revenue-related
activity to all books concurrently eliminating data
entry replication and manual intervention.

© Oracle | Terms of Use and Privacy• Book-specific Standalone Selling Prices, Revenue
Rules, Plans and Arrangements – Automate
concurrent posting to all books as business
transactions occur in real-time, versus “after thefact” posting or waiting until the end of the period
to replicate data entry and post adjustments.
• Book-specific Foreign Currency Management –Enable accounting departments to use bookspecific functional currencies when calculating
the general ledger impact, including the realizedand unrealized foreign currency gain/loss
amounts per transaction.
• Book-specific Financial Reporting – Enablereal-time revenue visibility for any book,anywhere, anytime.