Jagan Reddy, Co-founder, CEO & CTOAs an enterprise evolves, expands globally, accepts new and more flexible payment methods, or participates in M&A activities that end to experience severe complexities in revenue recognition. The introduction of a game-changing new revenue recognition guidance such as ASC 606 and IFRS 15, “Revenue from Contracts with Customers”, considerably adds additional complexities to revenue calculations and management. The current revenue processes that businesses use are often manual, involving complicated spreadsheets and hours of wasted manpower, which are not sufficient to keep pace and scale with the rapidly evolving business models. Also, existing ERP systems are not equipped to handle the complexity of revenue elements that may differ from company to company, such as SSP, Performance Obligations, variable consideration and dual processing. Addressing these challenges is Leeyo Software with its RevPro solution that automates the complex details of revenue recognition, collects data from multiple sources and performs functions including transaction grouping, allocations and fair-value calculations to supply outputs quickly and easily. “RevPro simplifies management of complex revenue processes through software automation and expert integration,” remarks Jagan Reddy, Co-founder, CEO and CTO, Leeyo Software. “RevPro integrates with all ERP systems—as a Cloud or on-premise solution to deliver visibility, functionality and configurability to the revenue recognition and reporting processes.”
RevPro consists of four main modules designed to fit individual needs, based on corporate business and revenue policies: Revenue Management & Allocation, Variable Consideration Analyzer, Revenue Forecasting, and Revenue Intelligence/RevPro Analytics, all helping to simplify the complete revenue recognition cycle. TheRevenue Management & Allocation module helps businesses manage timing, amount, and amortization method of revenue recognition, along with automation of fair value calculations, performance. Whereas, the Variable Consideration Analyzer module can further help companies analyze historical data using different stratification options, to produce results from various data populations. After getting an insight of the data, the Revenue Forecasting module can deliver a full-suite of operational reports for the revenue teams to properly close the financial period at hand.
RevPro simplifies management of complex revenue processes through software automation and expert integration
Through RevPro’s Revenue Intelligence module, customers can gain enhanced reporting capabilities and additional performance analytics and dashboards.
“We built our company and core product after walking in the shoes–and revenue roles - of our customers,” says Reddy. “We came from the trenches of revenue accounting, financial systems and IT with a clear understanding of the need to rise above manual systems and spreadsheets.” Leeyo’s scalable, automated, and auditable solution allows for complete compliance and standardization of existing policies and accounting guidance, which provides a faster period close process, real-time revenue visibility, and accurate forecasting capability. “Now, with the new guidance at hand, we stand alone as the only solution compliant with ASC 606,” extols Reddy.
In one instance, representatives of a hybrid entertainment/technology firm, which has been a longtime SAP-based client of Leeyo, implemented RevPro to re-evaluate their historical data to properly document all logic considerations for inclusion into the final design of their solution. “This extensive project approach may have been time-consuming, but the client valued the insight they got into their whole process, especially now with the incoming impact of ASC 606,” says Reddy.
Leeyo is already well into addressing the “next frontier” within the revenue recognition management systems space, which is the ability to process the higher volumes. The company has been investing a great deal in the necessary technology to crunch high volume numbers in RevPro through the incorporation of in memory processing, architectural improvements, code optimization and more multi-thread processing. “This is allowing us to scale and condense reams of data processing that might have taken a day into a matter of hours,” concludes Reddy.