SOFTRAX Revenue Management System (RMS) automates all aspects of billing and revenue recognition, so companies spend less time managing revenue and more time on strategic ways to increase it.
Revenue management is getting more complex. It involves dealing with order management, contract renewals, and complicated billing, such as subscription and consumption billing models. It also involves complying with revenue recognition standards like ASC 606 and IFRS 15, which regulate the recognition of revenue from contracts. In addition, the SEC and other regulators are now increasing focus on compliance with these standards. Are your front and back offices ready?
In the past, some companies customized a broad ERP system to handle each aspect of complex revenue management. This meant being locked into that vendor and version at a high cost. Some companies used separate vendors to individually solve their billing, renewal, and revenue recognition challenges. Or, as new revenue recognition requirements emerged, some companies moved to spreadsheets to comply with the added rules. All these loosely integrated components, customizations, and spreadsheets made revenue management labor-intensive, at high risk for errors, and extremely expensive. It also meant that companies didn’t have one solution with transparency to reconcile total order value, billing, and revenue recognition. It’s time to use the right solution.
The SOFTRAX Revenue Management System, or RMS, is a sophisticated order management, billing, contract renewal management, and one of the world’s most powerful revenue recognition engines. As a recognized leader in revenue management since 1999, it provides a platform for advanced revenue accounting that you will never need to replace. Our solution meets the accounting needs of companies ranging from startups to multi-billion-dollar enterprises. This multi-tenant cloud platform uses a proprietary policy engine to automate key processes and reporting requirements. This dramatically reduces human touch and errors, which will transform your revenue management and accounting. And all with zero need for customizations or spreadsheets. The RMS platform provides a secure, auditable, and controlled environment for processing complex revenue.
The RMS billing functionality handles complex billing models, such as subscription, consumption (including minimums, tiering, and overages), one-time, and milestone.
The RMS revenue recognition functionality incorporates a state-of-the-art revenue subledger. It conforms to ASC 606 and IFRS 15 standards. It handles accounting for multiple currencies and entities. It handles unbundling line items, assigning accounts, allocating revenue against standalone selling price, and deferring revenue. And it also processes contract modifications and combinations, variable consideration, material rights, time value of money, cost capitalization and more in a sophisticated way.
Given that up to 90% of a company’s revenue comes from renewals, the RMS subscription and contract renewal management functionality tracks and notifies you of pending renewals , keeps track of allowed upticks to maximize revenue at renewal, and handles complex co-terminations with full contract history.
Want to learn more? Contact us at sales@softrax.com to schedule a 30-minute consultation.
SOFTRAX RMS is the only comprehensive, multi-tenant cloud software solution that supports all forms of complex billing, dynamic pricing, contract renewal management, and revenue recognition to meet the needs of today’s competitive marketplace. With SOFTRAX, a company achieves a high level of automation that allows continuous accounting, easy deployment of complex billing models, and compliance with ASC 606 and IFRS 15. In other words, SOFTRAX RMS is a gamechanger that offers revenue management tools for revenue optimization.
SOFTRAX RMS delivers the industry’s highest level of system-wide automation. This single revenue management solution seamlessly integrates with existing CRM, CPQ, home-grown, or other systems, automating the flow of order and fulfillment data and associated data points to trigger billing and revenue recognition. The system simultaneously accounts for exchange rate, tax, and payment data to ensure operational efficiencies and accurate and timely processing. Your team can make informed and data-driven decisions for revenue growth and revenue strategy.
Subscription billing involves increased billing complexity, but it is also challenging from a revenue recognition standpoint. SOFTRAX RMS has functionality to handle the complexities of subscription billing and integrate billing with complex revenue recognition and contract functions, drawing on SOFTRAX’s 25-year history in revenue management and revenue strategy.
Consumption, or usage-based, billing is increasingly popular, and it requires sophisticated measurement that ties into the contract and can handle tracking revenue streams at the right price. SOFTRAX RMS meets any demand of a consumption or usage-based billing scenario, supporting all types of measurement, enabling automation for complicated processes, and measuring against the contract.
Milestone billing is a payment cycle that uses agreed-upon events or deliverables as billing deadlines. SOFTRAX RMS allows all aspects of milestone billing to be automated and leverages milestone widgets to manage even the most complex schedules seamlessly.
Revenue recognition is a key part of financial success for B2B companies. SOFTRAX RMS automates revenue recognition for ASC 606 / IFRS 15 compliance, empowers faster close times, and handles all levels of revenue recognition from simple to complex.
Subscription billing involves increased billing complexity, but it is also challenging from a revenue recognition standpoint. SOFTRAX RMS has functionality to handle the complexities of subscription billing and integrate billing with complex revenue recognition and contract functions, drawing on SOFTRAX’s 25-year history in revenue management and revenue strategy.
Consumption, or usage-based, billing is increasingly popular, and it requires sophisticated measurement that ties into the contract and can handle tracking revenue streams at the right price. SOFTRAX RMS meets any demand of a consumption or usage-based billing scenario, supporting all types of measurement, enabling automation for complicated processes, and measuring against the contract.
Milestone billing is a payment cycle that uses agreed-upon events or deliverables as billing deadlines. SOFTRAX RMS allows all aspects of milestone billing to be automated and leverages milestone widgets to manage even the most complex schedules seamlessly.
Revenue recognition is a key part of financial success for B2B companies. SOFTRAX RMS automates revenue recognition for ASC 606 / IFRS 15 compliance, empowers faster close times, and handles all levels of revenue recognition from simple to complex.
Contract Renewals have a direct tie to business profitability and efficiency. For most companies, the majority of their revenue comes from contract renewals. SOFTRAX RMS tracks the status of every contract through the renewal process. It manages the associated products based on division, location, and other parameters. This reduces revenue loss and leakage and allows quick access to the data needed for timely renewals.
Today’s ultra-competitive market requires companies to have perfect, real-time transparency into the revenue metrics that drive their business. Particularly in recurring revenue environments, it is imperative for executives to understand the factors causing month-to-month fluctuations, including upsells, downsells, new logos, credits, pauses, product swaps, and many others. SOFTRAX RMS offers this view of revenue metrics through feature-rich analytics for real-time revenue data, all contract state and history, and change events.
SOFTRAX RMS is augmented by a powerful workflow engine with a substantial amount of proprietary IP built in. This workflow engine can be used as a pre-processor for data to extend the power and flexibility of the proprietary policy engines, to automate key, specific workflows, and as a productization of the integration layer for order and other data. A company should use all forms of data for a complete understanding of its revenue and financial status. With SOFTRAX RMS, a company can import customers, products, contracts, orders, invoices, usage records, credit memos, and all your transactional data.
Contract Renewals have a direct tie to business profitability and efficiency. For most companies, the majority of their revenue comes from contract renewals. SOFTRAX RMS tracks the status of every contract through the renewal process. It manages the associated products based on division, location, and other parameters. This reduces revenue loss and leakage and allows quick access to the data needed for timely renewals.
Today’s ultra-competitive market requires companies to have perfect, real-time transparency into the revenue metrics that drive their business. Particularly in recurring revenue environments, it is imperative for executives to understand the factors causing month-to-month fluctuations, including upsells, downsells, new logos, credits, pauses, product swaps, and many others. SOFTRAX RMS offers this view of revenue metrics through feature-rich analytics for real-time revenue data, all contract state and history, and change events.
SOFTRAX RMS is augmented by a powerful workflow engine with a substantial amount of proprietary IP built in. This workflow engine can be used as a pre-processor for data to extend the power and flexibility of the proprietary policy engines, to automate key, specific workflows, and as a productization of the integration layer for order and other data. A company should use all forms of data for a complete understanding of its revenue and financial status. With SOFTRAX RMS, a company can import customers, products, contracts, orders, invoices, usage records, credit memos, and all your transactional data.
The complexities of subscription and consumption billing have caused many companies to revert to manual processes for total revenue management. This human element increases the risk of error for even the most talented teams and decreases team productivity.
SOFRTRAX RMS does away with the need for any manual touchpoint or spreadsheet, automating all aspects of billing and revenue recognition. With the platform, all stages of the billing cycle are captured, so that revenue management is always active and accurate.
Now that most organizations are confident in their ASC 606 compliance, they face the “day-two” challenge of operationalizing this massive accounting shift that ties revenue billed or received to the customer contract.
SOFTRAX RMS is designed meet changing financial requirements and accounting standards that come with business operational adjustments or compliance modifications. SOFTRAX draws on its 25-year history of developing industry-leading revenue management systems to power companies for their next phase of growth.
Many legacy financial systems are not equipped to handle the complex revenue management requirements imposed by evolving business models and ASC 606. Often companies are forced to adapt to the changing marketplace with manual workarounds that are inefficient and vulnerable to human error.
SOFTRAX RMS features seamless integration with all major ERP, CRM, and CPQ systems with zero customizations or spreadsheets. SOFTRAX RMS also allows companies to avoid a costly rip and replace of current systems.
The complexities of subscription and consumption billing have caused many companies to revert to manual processes for total revenue management. This human element increases the risk of error for even the most talented teams and decreases team productivity.
SOFRTRAX RMS does away with the need for any manual touchpoint or spreadsheet, automating all aspects of billing and revenue recognition. With the platform, all stages of the billing cycle are captured, so that revenue management is always active and accurate.
Now that most organizations are confident in their ASC 606 compliance, they face the “day-two” challenge of operationalizing this massive accounting shift that ties revenue billed or received to the customer contract.
SOFTRAX RMS is designed meet changing financial requirements and accounting standards that come with business operational adjustments or compliance modifications. SOFTRAX draws on its 25-year history of developing industry-leading revenue management systems to power companies for their next phase of growth.
Many legacy financial systems are not equipped to handle the complex revenue management requirements imposed by evolving business models and ASC 606. Often companies are forced to adapt to the changing marketplace with manual workarounds that are inefficient and vulnerable to human error.
SOFTRAX RMS features seamless integration with all major ERP, CRM, and CPQ systems with zero customizations or spreadsheets. SOFTRAX RMS also allows companies to avoid a costly rip and replace of current systems.
When billing and revenue recognition are complex, spreadsheets or customizations will only cause problems. The best way to capture all billing opportunities, recognize revenue easily, and manage contract renewals is to have the right solution in place.
SOFTRAX RMS is the only solution providing seamless integration between billing and revenue recognition without the need for customizations or reliance on spreadsheets. The platform automates processes, allowing companies to handle revenue management easily.
Many companies see the benefits of the recurring revenue economy but are impeded by the complex processes these billing models require. Legacy financial systems in particular lack the functionality to automate one or both of these processes.
SOFTRAX RMS allows for recurring revenue to be recognized and managed seamlessly, for both new implementations and across legacy systems.
While total back-office automation may seem out of reach, the path toward continuous accounting is something most companies should prioritize if they want to thrive in the future.
SOFTRAX RMS provides the only solution that combines complex billing and revenue recognition capabilities to streamline revenue management and advance an organization’s path toward continuous accounting.
When billing and revenue recognition are complex, spreadsheets or customizations will only cause problems. The best way to capture all billing opportunities, recognize revenue easily, and manage contract renewals is to have the right solution in place.
SOFTRAX RMS is the only solution providing seamless integration between billing and revenue recognition without the need for customizations or reliance on spreadsheets. The platform automates processes, allowing companies to handle revenue management easily.
Many companies see the benefits of the recurring revenue economy but are impeded by the complex processes these billing models require. Legacy financial systems in particular lack the functionality to automate one or both of these processes.
SOFTRAX RMS allows for recurring revenue to be recognized and managed seamlessly, for both new implementations and across legacy systems.
While total back-office automation may seem out of reach, the path toward continuous accounting is something most companies should prioritize if they want to thrive in the future.
SOFTRAX RMS provides the only solution that combines complex billing and revenue recognition capabilities to streamline revenue management and advance an organization’s path toward continuous accounting.
SOFTRAX RMS is the industry’s only solution that pairs complex subscription and milestone billing with enterprise-level revenue recognition capabilities in a single multi-tenant cloud system. To understand more download our Solution Overview sheet.
Revenue management refers to the use of market, company, and customer data and analytics to determine product and service offerings, pricing, and the allocation of resources for the business. Although sometimes synonymous with pricing strategies, revenue management is more complex and takes other factors into account.
A revenue management system is used to analyze data, forecast demand, manage resources, determine pricing, and oversee billing and revenue recognition processes. In the past, revenue management systems were used primarily in the hospitality and retail industries. However, revenue management systems are now used across a number of industries, especially in SaaS.
A revenue management system typically consists of several interconnected components designed to analyze data, forecast demand, optimize pricing, manage inventory, track performance, and reconcile billing and revenue recognition. The key components are:
Data Integration: This component involves collecting data from various sources such as sales, CRM systems, and revenue recognition and billing programs to ensure the best decision-making.
Demand Forecasting: This process uses statistical models and algorithms to predict future demand for products or services. The analysis can involve historical sales data, market trends, competitor activity, and other factors to generate accurate forecasts of future demand.
Price Optimization: This is a critical component that determines the optimal pricing strategy for maximizing revenue and involves analyzing demand forecasts, competitor pricing, customer segmentation, and other factors to set prices.
Inventory Management: This process ensures that the right products or services are available at the right time and in the right quantities to meet customer demand.
Channel Management: This involves managing distribution channels through which products or services are sold and determines how inventory is allocated across different channels such as online sales channels, distribution partners, and direct sales channels.
Performance Tracking and Reporting: These processes provide insight into the effectiveness of pricing strategies and revenue management decisions. This component monitors key performance indicators (KPIs) such as revenue, profit margins, occupancy rates, and customer satisfaction metrics.
SOFTRAX RMS is the world’s first single, multi-tenant cloud application solution capable of handling order entry; one-time, milestone, usage / consumption-based, and subscription billing; contract renewal management; and revenue recognition at both scale and complexity. SOFTRAX RMS is designed to be used by companies ranging from early-stage to Fortune 500 to meet their billing and revenue recognition needs. This means that once SOFTRAX RMS is installed, you never have to replace it regardless of changes to systems surrounding it, including core ERP. SOFTRAX RMS is designed with Financial Transformation and Touchless Revenue Accounting principles in mind to maximize automation of the revenue management process.
SOFTRAX RMS acts as a seamless bolt-on to over 200 existing ERP systems. As a multi-tenant cloud solution, SOFTRAX RMS is deployed through a continuous release process, ensuring new, value-add functionality is delivered to clients in a highly efficient and timely manner. Companies are no longer stuck on dated versions of their infrastructure, replete with costly customizations that can’t be removed. Due to the high compute efficiency of the multi-tenant cloud model, SOFTRAX RMS is priced below options provided by ERP vendors. SOFTRAX RMS incorporates a strong partner ecosystem, with gateways and pre-packaged integrations to many of the applications required to handle payment processing, tax, exchange rates, and fulfilment that impact both billing and revenue recognition processes.
With SOFTRAX RMS, companies are drawing on the company’s 25+ year history of excellence in revenue management solutions and will get the best billing, renewal management, and revenue recognition platform in the market. SOFTRAX pioneered billing and revenue management in 1999 with its award-winning Operations platform. In 2005, SOFTRAX launched the capabilities for subscription and consumption billing monetization and management with its Contrax solution. Today, SOFTRAX RMS draws on this innovation to provide the best revenue management system for growth, client retention, and monetization. We are proud to count AEG, Tyler Technologies, State Street Bank, and many others in our family of clients.
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