Dynamics AX addresses industry requirements for Software + Services firms
We just completed a presentation for a global software and services firm that is evaluating new ERP software platforms, so we thought we’d share a few key business issues that this organization has and how our ProjAX (now known as Projects+) industry solution for Microsoft Dynamics AX can help address their business requirements.
This organization’s most critical requirement is around their Order to Revenue Recognition process, which basically entails everything from setting up the initial contract, to defining the revenue recognition schedules and amounts, to cutting specific sales orders within the overall contract, and finally managing their recurring revenue (maintenance and support) license fees. As this organization is not based in the US, their software industry revenue recognition practices are based on IFRS standards rather than SOP 97-2 including VSOE requirements that many software companies in the US have followed for years.
The Advanced Trade Agreements module for Dynamics AX provides the framework for setting up and managing complex contracts and revenue recognition rules for any type of product, including software industry requirements. Using this module, we were able to replicate the structure of this organization’s contracts, and create a model by which they can automate many of the order management and revenue recognition processes within their contracts. The subscription management feature within this module also helps us to automate many of the processes required around the recurring revenue streams like the annual maintenance and support fees. This includes the creation of accrual journals that automate the revenue recognition process.
Another key area for this organization was the management of their services projects, basically the projects where their resources implement their software at their clients. This company has a global team of development and implementation resources that work together to deliver their solutions at their client sites. Therefore, it’s necessary to manage the entire lifecycle of these client facing projects, from the estimating phase, to project budget management, resourcing, time and expense entry, and project billing.
Our ProjAX (now known as Projects+) solution, built on Microsoft Dynamics AX, provides the ability to track all project and resource related activities directly within Dynamics AX, so everything is tightly integrated across your business. Our project quoting module allows you to define the resources and services required by the customer, building up estimates for hours, expenses, items, and any project fees. Once the contract is signed, the estimate project can be converted into a new project, where you can establish any billing rules and the baseline budget. A complete resourcing module is available to plan what resources you need and when you need them. The integrated Time & Expense system allows you to enter, route, and approve timesheets and expense reports, which automatically flow into the billing engine. So there’s support for the complete project lifecycle, right within the same system that manages your corporate financials and software contracts. This integration helps to improve visibility across your business and increase the efficiency and productivity levels of your employees.
If you have any questions about how our ProjAX (now known as Projects+) industry solutions for Dynamics AX can help your business, feel free to visit our website at www.saglobal.com or contact us, our experts will get in touch with you.