Microsoft Dynamics Advanced Management with Revenue and Expense Deferrals and Contract Management.

Accurately managing the complexities in properly recognizing revenues and expenses is important for any company, but it is critical for companies that sell software and related services. With Dynamics GP 2010 Advanced Management, you can be confident that your ERP system can meet both your own internal and external, regulatory requirements, for the accurate recognition of software-related revenues, and manage the renewal process with ease and efficiency.

With Dynamics GP 2010, you can eliminate the use of spreadsheets and other external systems, and process all of the transactions related to the sale of software products and their related services in just a single step. The creation of the renewal contract for the annual enhancement, and the deferral of the revenue into the proper future periods can all be accomplished at the time of the original invoicing. You no longer have to create manual reminders to create monthly journal entries, Dynamics GP handles all of the accounting, properly and accurately, the first time.

Sales activity reporting can be generated to reflect both GAAP accounting (compliant with SOX) with revenue recognition deferred to future periods, as well as sales reports that place all activity in the current period, useful for monitoring the effectiveness of your sales team, and for commission purposes.

Revenue Recognition and Contract Management

• Deferred Revenue and Expenses
• Contract Renewals
• Advanced Invoicing
• Customer-specific Pricing
• Sales Forecasting and Analysis
• GAAP & Regulatory Compliance
• Complete integration with Dynamics GP Financials
• Revenue and Expense deferrals

Revenue/Expense Deferrals dramatically simplifies the task of deferring revenues or distributing costs over multiple periods. Complex calculations and the posting of values are automatically managed within Revenue/Expense Deferrals, spreading values over date ranges specified by the user. All postings are made at the time of the originating entries, Revenue/Expense Deferrals will save business professionals time and effort every financial period; calculations and journal entries are automatically managed rather than having to be manually entered from spreadsheets or other sources.

Within the Deferral Entry window, you can specify the deferral and recognition G/L accounts you wish to access, the start and finish dates for the deferral, and the calculation method for the deferred amounts. Use Deferral Profiles to ensure that similar transactions are processed in a consistent manner.

When past transactions that are already posted need to be allocated across multiple periods, Revenue/Expense Deferrals allow you to create “Retroactive Revenue and Expense Allocations”. From within General Ledger, Accounts Receivables or from Accounts Payables, simply identify the transaction that needs to deferred, and determine the method you wish to use to spread the revenue or expense. Dynamics GP offer flexibility in your posting options, allowing you to choose to post directly to Profit & Loss accounts and defer to Balance Sheet accounts, or vice versa.

Contracts Management

As a contract service provider, your customers require agreements that provide them with services for their equipment and systems. They typically need solutions that provide coverage options, fixed prices, and upgrades and enhancements. With Microsoft Dynamics GP 2010, you can create a quote for the customers’ information. After negotiations have been completed, transfer that quote to a contract. Monitor renewals, provide enhancements and support, all based on the terms of the contract. You can recognize the revenue you earn for the contract as time passes. Finally, when the contract ends, you can renew the contract as the customer desires.

With Microsoft Dynamics GP 2010, you can meet the needs of your customers, ensure compliance with both internal policies and external regulations, and accurately report on your activities. Handle your transactions a single time, accurately recognizing revenues and expenses in the proper periods, and monitor the renewal activity of your contracts.