Customer Success Industry : Hardware & Software

 
 
 

Telestream is a leading global provider of digital media encoding, delivery, workflow automation, and cross-platform compatibility solutions. Telestream customers include the world’s leading media and entertainment companies, content owners, creators and distributors.

 
 

Revenue Accounting

In revenue accounting parlance, Telestream sells Software, Hardware, Hardware with embedded Software, Support and Services.

Revenue Guidance

SOP 97-2, EITF 09-3, SAB 104

Revenue Solution evaluation criteria and goals

  • Support business scalability and acquisitions without additional resources
  • Handle multiple types of business models without significant system rework
  • Completely automate allocation and revenue recognition under SOP 97-2 and EITF 09-3
  • Support complete legacy data migration
  • Provide a single source for all Sales and Revenue data
  • Be configured to work with existing accounting system
  • Eliminate spreadsheets and manual calculations
 
 

Key Highlights of Revenue Edge Implementation

  • Manage ESP values by segmentation of Customer Type.
  • Automated Allocation for Software and Hardware transactions based on stratification criteria.
  • Auto Carve outs for bundled Product SKUs.
  • Fair Value Analysis and Maintenance of VSOE and BESP.
  • Manage Contingencies such as Revenue on Cash, Event Contingencies.
  • Auto release and manual release of contingencies.
  • Automate revenue adjustments for revision of support periods.
  • Allocation modification if arrangements are modified.
  • Link orders for allocation at the linked arrangement level.
  • Sync orders and invoices data from accounting system.
  • Capture all dimensions required to post revenue and deferred revenue JEs to accounting system without any manual adjustments.
  • Capture reporting dimensions to automatically generate reports for data required for audit and board package.

Key Reports

  • Revenue by period by Customer / Order / Product / Category / Account Group
  • Deferred Revenue Schedule by Customer / Order / Product / Category / Account Group
  • Deferred Revenue Roll forward
  • Backlog Revenue Roll forward and Balance reconciliation
  • Bookings Roll forward
  • Bookings – Billings – Revenue – Deferred Revenue – Backlog
  • Several other reports in Executive reporting, Board package and Audit formats
 
 

CFO says...

quote-leftRevenue Edge will help us scale without adding any resources. None of the Accounting systems I have seen have revenue automation capabilities that come even close to what Revenue Edge has to offer for Revenue recognition automation.

RE was configured perfectly for our Microsoft Dynamics accounting system requirements and no manual adjustments are needed for our financial close. Given what we have seen with Revenue Edge processing and reporting capabilities, we expect to report and reconcile Revenue & Deferred Revenue within 1 day of month end billing close. We expect significant productivity gains and we will be able to review revenue transactions on a real time basis. This will allow us to more effectively manage VSOE as well as oversee deal structure to maximize revenue.

All legacy and backlog orders were migrated to Revenue Edge to process a 100% of open revenue transactions from the system starting Day 1 of go live. Revenue Edge created various data reconciliation reports, specific to Telestream’s processes to completely eliminate processing data outside of the system.

With Revenue Edge, all of Telestream’s revenue transactions are automatically allocated under the relative selling price method or the residual method as appropriate.

Revenue Edge beat expectation on all aspects of implementation. I highly recommend the solution to any Company looking to move away from spreadsheets for revenue, as the system seems capable of handling any revenue model and works with any accounting system.quote-right

-Mark Cuny, CFO – Telestream