Revenue recognition is a generally accepted accounting principle (GAAP) that identifies the specific conditions in which revenue is recognized. Typically, revenue is recognized at the end of fiscal intervals, monthly, reported quarterly and used in trend analysis for a year to year or quarter over quarter comparison. Accounting for revenue can get complicated when a company takes a long time to produce a product. Ultimately, as a result, there are several situations in which there can be exceptions to the revenue recognition principle. There is a solution to expedite these processes that is fast, simple, and automated to the user’s convenience.
Ayara’s Revenue Accounting product offers various highly flexible and scalable features for an end to end automation of revenue recognition process. Our cognitive automation capabilities along with natural language processing (NLP) can review contract terms to identify and calculate variable considerations from a variety of sources thereby determine revenue adjustments for each performance obligation. It processes the sale transactions in accordance with ASC 606/ IFRS 15 accounting principles through automated identification of accounting arrangements and performance obligations, revenue & bundle allocations, revenue recognition, and accounting.
Highlighted Capabilities of Revenue Accounting:
- Post booking arrangements
- Revenue allocations/reallocations
- Variable considerations
- Revenue triggers
- Revenue & cost adjustments
- Supports multiple ledgers & currencies
- Revenue amortizations and accruals
- Period close
- Account reconciliations
- Meets compliance requirements
Ayara’s accounting solution is seamlessly integrated with various CPQ (Salesforce, Apttus, etc.) and ERP applications (Oracle, SAP, Workday, etc) to capture customer and contract activity. There are multiple business benefits to enforcing Ayara revenue accounting including faster, timely and compliant period close through automated process and reconciliations, better visibility into actual revenue and adjustments at the transactional level, and elimination of manual process for revenue accounting and thereby reducing the risk as well as manual operational controls.
Our continuous monitoring & reconciliation capabilities enable real-time & proactive identification of any revenue compliance risks as well as any operational discrepancies to ensure authenticity and accuracy of revenue information.