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Blytheco Home | Sage Software | MAS 500 | Enhancements | AR Enhancements | Deferred Revenue Processing
Deferred Revenue Processing
for Sage MAS 500
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Automate
Deferred Revenue Recognition (Integrated with:
AR/SO/GL)
Deferred Revenue can be a significant accounting
headache for a company’s
finance department. Managing and tracking it
with spreadsheets can be a significant resource
drain, absorbing time and money, and exposing
a company to errors resulting in incorrect
reporting of revenue.
With Deferred Revenue
for MAS 500, managing
deferred revenue is an automated, efficient
process. The Deferred Revenue module tracks
revenues collected in advance of the delivery
of maintenance, support or other prepaid services,
and enables the user to manage and recognize
revenue through a flexible, easy to use interface.
Revenue is recognized and posted automatically
to the General Ledger module within MAS
500.
Integration
with both Sales Order and Accounts Receivable
provides for initiating a new contract when
the sale transaction is entered. Recurring
Invoice and Contract Renewals functionality
provide for recreating a contract and deferred
schedule for repeat business automatically.
Built with the MAS 500 Application Framework,
the Deferred Revenue module provides the same
rich graphical and ease-of-use features found
throughout MAS 500. Integration with MAS 500
is achieved with Customizer, extending functionality
without modifying it.
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Contract Maintenance
The process for
Deferred Revenue Recognition starts when a user enters
a Contract for the portion of a sale that must be
deferred. These can be Maintenance and Support Contracts
common in the Software Industry, Subscription Contracts
found in the Publication Industry, or any other form
of agreement whereby an organization has invoiced
for or received moneys in advance of the performance
or delivery of services. When a Contract is created,
the user provides begin and end dates, the contract
amount, the number of periods the contract will be
recognized and the amount to recognize each period. |
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Contract Types
An unlimited number of
Contract Types can be defined, each with its own
set of default revenue and liability accounts.
Accounts
Receivable Integration
Establishing new Contracts
is done as Invoices are entered. If a user needs
to enter a Contract subsequent to posting invoices,
the ability to define a Contract for a posted invoice
is provided through View/Edit Invoices. |
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Recurring Invoices
Contracts can be associated
with Recurring Invoices. Each time a Recurring Invoice
is generated, one or more new contracts are generated
as well, which can be edited and are posted with
the Recurring Invoice. |
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Sales Order Integration
Setting up Contracts
is done as Sales Orders are entered. Multiple Contracts
can be entered for a Sales Order and are created
in a ‘Pending’ status. When an Invoice
is created for a Sales Order the Contract(s) status
is updated and can be reviewed and edited in the
invoice batch prior to posting. The Contract becomes
active when the Invoice is posted.
Inquiries and Reports
Included with are flexible
Inquiry and Reporting options that allow the user
to report on anticipated revenue by period, contract
type, customer, etc.
Revenue Recognition
Revenue Recognition is the automated
process for calculating and generating the portion
of Deferred Revenue that can be recognized in the
current period. Initiating Revenue Recognition is
an interactive process during which the user may
simply generate and post the results, or preview
and even adjust amounts before generating and posting.
The Revenue Recognition process automatically recognizes
defined amounts and posts them to the appropriate
general ledger accounts. |
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Contract Renewals
The
Contract Renewals function provides the user with
the option to select previous Invoices and Contracts
and generate new Invoices and Contracts automatically.
This feature is useful when Contracts are about to
expire and the company would like to invoice the
customer ahead of time to ensure contract renewal
and accelerate the collection of fees. |
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| Questions? Please call us at (949) 583-9500 x2500 or email us at
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Deferred
Revenue Processing for MAS 500 (PDF 369 kb)
