How Zuora Can Help You Get Ready for the New Revenue Recognition Standards

The new ASC 606 revenue recognition standards will make it nearly impossible for some companies to conform to guidance with manual spreadsheet-based processes. Because the new guidance requires companies to compare periods before and after ASC 606, now is the time to transition to an automated revenue recognition system.

RevPro customers have the most current and accurate revenue cycle automation software on the market, so the new guidance won’t be an issue.

Overall, revenue recognition guidance is grouped into five steps. And RevPro is with you every step of the way.

How Zuora Can Help You Get Ready for the New Revenue Recognition Standards

As a RevPro customer, you will have the most current and accurate revenue cycle automation solution on the market.

Overall, revenue recognition guidance is grouped into five steps:

  • 1

    Step 1: Identify the Contract

    RevPro allows you to group transactions in a variety of ways and support complex grouping rules. In addition, you'll be able to manually regroup transactions differently for each guidance and set of books.

  • 2

    Step 2: Identify Performance Obligations

    RevPro includes a rule-based engine that will let you identify distinct performance obligations, group similar obligations and dynamically add new obligations.

  • 3

    Step 3:Determine Transaction Price

    RevPro allows you to dynamically calculate variable consideration amounts, manually create transactions or adjustments, and perform tracking and analysis to meet disclosure requirements.

  • 4

    Step 4: Allocate Transaction Price

    RevPro uses a robust allocation engine, with additional elements that comply with the new guidance. You will be able to calculate RSP/SSP standalone or on all transactions, account for contract assets and liability, generate roll-forward reports on contract assets and liability and perform non-software residual allocation.

  • 5

    Step 5: Satisfy Performance Obligation

    RevPro's robust revenue timing engine will release POBs based on specific event triggers and recognize COGS and other cost elements according to the revenue timeline. In addition to these changes that make following the five steps much easier for revenue accountants, RevPro will enable you to fully process transactions and generate detailed reporting based on dual guidance.