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Deferred Revenue Processing for Sage 500

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 Sage 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 Sage 500 Application Framework, the Deferred Revenue module provides the same rich graphical and ease-of-use features found throughout MAS 500. Integration with Sage 500 is achieved with Customizer, extending functionality without modifying it.

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.
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.
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.
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.
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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