SuiteBilling unifies both the billing and revenue recognition processes regardless of business model with complete controls and auditability, helping businesses comply and reduce risks, according to a company media release.
Built natively into NetSuite’s core ERP system, SuiteBilling delivers a degree of functionality and business value that are unmatched by any other competing product. It is the industry’s first and only comprehensive cloud solution that synchronises complex processes from order to billing to revenue recognition, all within one system.
Billing is often thought of as a mundane but necessary task, treated as a standardised process created solely to collect payment on a sales order. However, as technology is becoming a component of every business process and cloud adoption continues to grow, every company is being forced to rethink its business model. Product companies are adding services, while services companies are developing and selling products. In addition, hybrid business models are emerging with a mix of different offerings, packaging and pricing bundles.
MGI Research also estimates that companies will spend over US$194 billion on billing – an aggregated number that includes labour, deployment, technology services, upgrade costs and maintenance.
Traditionally, businesses have had to use multiple, disparate systems – one or more for billing, one for order and one for revenue recognition -- leaving customers to cobble together manual processes and complex integrations to manage business processes and accurately recognise revenue.
“Monetisation – which is how efficiently and effectively demand is created and translated into revenue, profit and market differentiation – is essential to today’s growth initiatives like IoT, digital business, and omnichannel. The concept of an agile monetisation platform, which brings together nine functions such as financials, order management, billing, revenue recognition and commerce, is gaining traction among progressive companies. With SuiteBilling, NetSuite is adding one of the key elements of AMP,” said Igor Stenmark, managing director at MGI Research.
NetSuite SuiteBilling gives businesses control and flexibility over products and pricing, while enhancing the customer experience by improving transparency and focusing on value delivered vs. the cost, all while supporting the new accounting standards.
NetSuite provides a single system to manage orders from multiple sales channels, and to manage billing and revenue recognition that supports compliance with revenue recognition rules such as revenue arrangements with multiple elements (ASC 605-25) and percentage-of-completion accounting (ASC 605-35), while providing a foundation to prepare for adopting ASC 606 in the future. Additionally, NetSuite’s cloud-based architecture, with the flexible and powerful SuiteCloud development platform, enables customizations that carry forward automatically with every upgrade and provides a robust ecosystem of complementary solutions.
NetSuite gives companies unprecedented control over their billing and revenue recognition processes. SuiteBilling provides:
1. A Core Framework, allowing for internal NetSuite subscription management, project and fulfillment modules to directly leverage core billing, revenue recognition and financial elements and processes via billing accounts and charge records.
2. Enhanced Order to Revenue. NetSuite’s superior and highly scalable order management functionality can process orders coming in from multiple channels and centralize them within one single system while advanced revenue management capabilities support multi-element arrangements.
3. Role-Tailored User Experiences. Billing and Revenue Work-Centers designed specifically for billing specialists and revenue accountants, respectively, streamline key workflows and help users to complete their critical business activities more quickly and easily.
4. Subscription Management, supporting subscription- and usage-based pricing models and rating (simple and advanced).
5. Unified, but Independent Approach, allowing invoicing and revenue recognition processes to work seamlessly together while meeting the specific independent needs of each process.
6. Rich, Customizable Customer Billing Portals, based on NetSuite’s industry-leading ecommerce platform, enable companies to deepen and expand customer relationships.
David M. Williams is attending SuiteWorld 2016 as a guest of Netsuite.