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Solving Challenges with Revenue Recognition Reporting Integration
Businesses may gain value from implementing a revenue recognition reporting integration from Salesforce Billing (Salesforce Billing Managed Package)
Required Editions
| Available in: All Salesforce Billing Editions |
- Improving Revenue Recognition Capabilities
- Salesforce Billing provides extensive revenue recognition reporting capabilities for one-time, subscription, and usage-based products. You can track standard pro-rata recognition for subscriptions and full recognition for one-time and usage charges. You can also manage complex scenarios by splitting revenue amounts across several performance obligations and define custom recognition periods for each product in a sale.
- Recurring Revenue Forecasting
- Many businesses with existing ERP systems face challenges with insufficient or disorganized data across multiple systems. They may require manual intervention to determine what was sold to the customer and how to recognize the revenue based on the products and services delivered. These challenges are also common when moving to a recurring business model. Legacy software suites are not built to manage recurring revenue schedules, especially under changing International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) revenue recognition standards. Salesforce Billing solves this problem by generating revenue schedules for each service included in a sale, based on the contract’s revenue recognition policy.
- Meet Accounting Standards Codification (ASC) 606 Revenue Recognition Requirements
- Many organizations doing B2B commerce enter into complex contract arrangements with their customers and must comply with ASC-606 and IFRS-15 revenue reporting regulations. Salesforce Billing brings together customer, order, contract, and invoice data on one platform to help handle complex revenue recognition requirements.
- Each line item in a sale looks up to a revenue schedule. Salesforce Billing creates revenue schedules upon either order activation, invoice posting, or credit note/debit note posting. Each schedule’s duration is based on the service period of the performance obligation. This period can be the standard start and end dates for an order or invoice line, or a custom date range. Salesforce Billing also supports assigning different revenue recognition policies and GL accounts to a sale based on the legal entity responsible for the transaction.
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