ASC 606 - Financial Accounting Standards Board’s new revenue recognition standard has two main objectives. The first, is to eliminate industry-specific guidance in order to create more transparent and uniform reporting across all types of companies. This will allow for a more generic comparison among companies and industries. Second, the standard seeks to give companies more judgment in applying accounting guidance to manage their businesses.
It prompts users through a detailed and consistent revenue recognition process which improves the efficiency of employees assigned to these tasks, ultimately saving a lot of money.The idea behind the new standard is to create uniformity and enable better and more objective comparisons among the vastly different businesses and business models.
SAP RevSym addresses the multitudinous revenue recognition and sales expense challenges posed by ASC 606 and IFRS 15 internationally. It automates revenue recognition as well as accounting for commissions at the portfolio level or even at a deal-by-deal level. You can easily amortize the cost of sales or sales commissions for existing contracts, new contracts, contract renewals, and contract cancellations.