Flexible Revenue Recognition
For trade agreements to be effective, they must enable revenue recognition at appropriate times. With Advanced Trade for Dynamics 365 F&O, revenue accruals are generated directly from trade agreements to ensure revenue recognition occurs when you want it.
Companies can create amortization schedules and assign them to an individual trade agreement, creating a flexible financial schedule, or on a customer-by-customer basis. Businesses can also record revenues using the milestone or deliverables methods. This added flexibility ensures GAAP and Sarbanes-Oxley compliance no matter if you are recognizing revenue on an accrued or a deferred basis.
For companies that have VSOE or FASB “performance obligation” requirements, you can even re–class entire orders for revenue recognition purposes.
Our Microsoft Dynamics trade management and pricing software also includes the ability to create amortization journals at regular intervals in order to recognize revenue that’s already arrived. It attaches each entry to a trade agreement so that both the financial and sales teams can accurately track the results of each order over the life of the contract.