Keep Up With Evolving Revenue Recognition Rules

Scrutiny on when and how much revenue can be recognized is continuing to increase. Workday enables you to manage billing and revenue recognition independently so that you can recognize the right amount of revenue at the right time. Configurable processes and schedules help your organization manage and account for revenue in accordance with today's guidelines, and adapt and comply with evolving rules and guidelines.

With Workday Revenue Recognition, you can:

• Increase the productivity of your finance organization with automated revenue management processes
• Reduce audit costs by complying more easily with standards issued by the SEC, FASB, Sarbanes-Oxley, etc.
• Automate revenue recognition accounting to reflect VSOE, TPE, and ESP and comply with SOP 97-2, 98-9, 81-1; EITF 08-01, 09-03; and SAB 101, 104
• Allocate different revenue and billing amounts by contract element and manage them separately
• Automate the recognition of deferred revenue and better forecast your business real-time visibility into future deferred revenue, revenue forecasts, and deferred revenue waterfall reports
• Configure revenue recognition business processes to ensure correct personnel are involved in the review and approval process

Revenue Schedules and Accounting

• Support multi-element arrangements for bundled products and/or services
• Create revenue recognition schedules to reflect correct timing and amount of revenue to recognize
• Combine contract lines in a revenue recognition schedule whenever they logically go together
• Recognize revenue in regular intervals and/or tie different types of milestones to the overall schedule and/or specific installments
• Configure business processes on revenue schedules to ensure appropriate approvals before revenue recognition starts as well as when revenue is recognized
• Recognize revenue based on:
  • Number of days in the period
  • Spread even
  • Defined installments with optional different first and last installment amounts
  • Custom installments

Revenue Reporting and Forecasting

• Get real-time insight into forecasted and deferred revenue
• Have visibility into short- and long-term deferred revenue by contract element, contract, and customer
• Maintain real-time visibility to your deferred revenue waterfall by different dimensions, giving you key insight into your revenue forecast and potential deferred revenue exposure