ASC606 defines a contract as an agreement with a customer. It is an enforceable contract that’s been approved and it’s probable that you’re going to collect the fees from the customer. There is specific accounting guidance on that, and you have to go through it when you’re thinking about defining the contract in Tensoft. Tensoft […]
Value of Workbench in Tensoft Revenue Lens
The workbench in Revenue Lens is a landing spot where all incoming documents come to be processed. They can come from an API or an Excel upload, or we can create a manual document directly into the workbench. You may want integrations to work perfectly, but you don’t build a system for perfection. You build […]
Revenue Recognition Challenges in the Software Industry
Recognizing revenue can be particularly challenging in the software industry. The challenges can arise from the sales process, the volume / complexity of the sales transactions, the number of inputs required in the revenue process, or from the appropriate accounting standards that apply to your business. Occasionally you may have all of the above! I’ll […]
How Tensoft Revenue Lens Supports the Five-Step Revenue Recognition Model
By now, the five-step revenue recognition model for recognizing revenue under ASC 606 is familiar to most accountants. The five steps of this model are: 1) Identify the contract with a customer; 2) Identify the performance obligation in the contract; 3) Determine the transaction price; 4) Allocate the transaction price; and, 5) Recognize revenue as […]
How to Onboard Documents into Tensoft Revenue Lens
Adding Tensoft Revenue Lens to your financial systems requires two tasks. The first task is to set up our application. The second task is to bring your sales into Revenue Lens. The ideal is to capture the sales data where it occurs and to move that into Revenue Lens. Your sales may happen online, or […]
A Quick Overview of Tensoft Revenue Lens
Subscription companies, companies with deferred revenue, usually start by managing revenue in Excel. Revenue recognition in a spreadsheet makes sense when you are a small company because it’s a small data set, material, less revenue going through the system and fewer transactions. When your company starts growing revenue management gets complicated. Sometimes the challenge is […]
Revenue Recognition: Five-Step Model
We all know that the new revenue recognition standard’s rules are in effect for the public companies. So how do the Tensoft revenue recognition solution fits into this new model? Tensoft Revenue Lens, is equipped to handle the variable consideration and contract modifications through the ability to update transaction price of the contract when estimates […]
Join Us for ‘ASC 606: Understanding Contract Modifications and Variable Consideration’ Webcast
Tensoft’s Business systems consultant and revenue recognition expert Jason Ochipa recently joined us to provide some insights on how Tensoft Revenue Lens addresses some of the changes with the new ASC 606 guidance. As you know, a lot of that guidance is reflected to be more of a principles-based approach to accounting, which allows for […]
Revenue Recognition for Services and Contracts
Missed Tensoft’s complimentary webcast on “Revenue Recognition for Services and Contracts”? Here’s an excerpt from that, followed by a recording of the entire event: “So what we will be looking at today is the various types of services and contracts that technology companies run into, so time and materials type of contracts, work on the […]
Does the FASB’s Delay on ASC 606 Spell Relief?
As I am sure many of you are well aware, FASB recently proposed a one year deferral for the new revenue recognition standard, ASC 606. Even though these changes are now a little further away and many companies seem to breathing a sigh of relief, it would be a mistake to procrastinate. The results of […]