Revenue Recognition Software facilitates FASB compliance.
Press Release Summary:
Aimed at companies running financial and accounting processes on ERP systems provided by SAP, Oracle, and Microsoft Dynamics GP, cloud-based NetSuite Advanced Revenue Recognition helps automate complex processes that are required to comply with FASB rules for multi-element sales, known as EITF 08-01 and EITF 09-03. Program supports all key revenue recognition standards, automates revenue recognition calculation, and provides dashboards and reporting for continual revenue recognition monitoring.
Original Press Release:
Netsuite Unveils First Revenue Recognition Software Designed for New FASB Compliance Rules
NetSuite Advanced Revenue Recognition Comes to the Rescue of Finance Teams Facing Imminent Deadline to Adopt Complex Rules-EITF 08-01 and EITF 09-03
Major Focus on At-Risk Companies Running SAP, Oracle and Microsoft Dynamics GP
SAN MATEO, Calif. - NetSuite Inc. (NYSE: N), a leading vendor of cloud computing business management software suites, today unveiled NetSuite Advanced Revenue Recognition, the first revenue recognition product designed to help companies automate the highly complex processes that are required to comply with new Financial Accounting Standards Board (FASB) rules for multi-element sales, known as EITF 08-01 and EITF 09-03. The new FASB rules have been compared to the Y2K problem in that there is a hard deadline for implementation. Companies must adopt these new rules no later than the first fiscal year beginning on or after June 15, 2010. For more information about NetSuite Advanced Revenue Recognition, please visit www.netsuite.com/compliance.
The new NetSuite product will be unveiled today at an event in Palo Alto, Calif., featuring revenue recognition experts from Deloitte, Protiviti and Proformative.
This new NetSuite revenue recognition offering is specifically aimed at companies running their financial and accounting processes on enterprise resource planning (ERP) systems provided by SAP, Oracle and Microsoft Dynamics GP (formerly known as Great Plains.) Companies running these and other legacy systems will be able to integrate the new NetSuite revenue recognition product to streamline their revenue management processes and gain the benefits of a modern cloud-computing solution. For existing NetSuite customers, the new multi-element revenue recognition capabilities are available as an add-on module.
"Any company selling products or services delivered at different times can be affected by these new accounting requirements," said Jim McGeever, CFO at NetSuite. "It is vitally important that all companies understand their compliance requirements before the rules come into effect."
Companies Face a Ticking Clock as Deadline Nears
Enterprises are facing a ticking clock with the deadline for compliance with the new revenue recognition rules approaching rapidly in 2011. Companies who have already adopted the new rules are seeing a major impact on how they recognize and report revenue. For example, Apple is one of the first public companies to have already adopted the new rules. As a result, they have been able to accelerate the recognition of revenue for popular products such as the iPhone, giving revenues a boost. The adoption of the new accounting principles increased Apple's net sales by $6.4 billion, $5.0 billion and $572 million for 2009, 2008 and 2007, respectively (Source: Apple 10K). NetSuite is in the process of adopting the new FASB rules to achieve early compliance before the 2011 deadline.
Product Overview
NetSuite Advanced Revenue Recognition allows companies to obtain instant and ongoing compliance with FASB requirements. Because the solution is cloud-based, this compliance comes without the need to install new servers or maintain additional software. No matter what ERP system a company uses, NetSuite Advanced Revenue Recognition provides complete support for all the key revenue recognition standards, automates revenue recognition calculation, and provides dashboards and reporting for continual revenue recognition monitoring.
Key elements of NetSuite Advanced Revenue Recognition include:
o Compliance with AICPA, FASB and SEC regulations (including SOP 81-1, SAB 101, EITF 00-21, EITF 08-01 and EITF 09-03);
o Improved productivity through reduced calculation time and decreased reliance on spreadsheets;
o Clear visibility and continual monitoring of all aspects of the revenue recognition process, including reporting on key data such as Estimated Selling Prices;
o Support for revenue recognition schedules on all sales transactions, regardless of channel;
o Ability to assign flexible and customizable recognition schedules on a per-item basis;
o Immediate notification when revenue is due to be recognized;
o Powerful templates which allow revenue recognition methods to be quickly assigned to all saleable items, and easily customized as needed;
o Built-in to NetSuite Financials or integrated with third-party ERP systems including Oracle Financials and SAP R/3.
Availability
NetSuite Advanced Revenue Recognition will be available July 1.
For more information about NetSuite, visit www.netsuite.com.
NOTE: NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.
