Upload
roderick-skinner
View
220
Download
0
Embed Size (px)
Citation preview
© 2005 Wind River
Daily Revenue Recognition Solution
Kuldeep TanwarManager Business Applications
Wind River Systems, Inc
January 17th 2007
2 © 2005 Wind River
Wind River: Device Software Optimization
Wind River enables companies to develop and run device software faster, better, at lower cost, and more reliably.
3 © 2005 Wind River
Wind River Leading the DSO Industry
DSO Leader
Technology Leader
MarketLeader
• Established in 1983• Public company (1.4B market cap)• #1 market share (40%)• #1 revenues ($266M FY06)
• 1st connected RTOS• 1st IDE• 1st device software develop-
and-run platforms• 1st industry-specific services
practices
• 40,000 users• 300M deployed devices• Global operations, services,
and support• #1 DSO solution
4 © 2005 Wind River
Wind River’s Customer’s
Our customers make differentiated devices by focusing on
intelligent, connected device software.
5 © 2005 Wind River
Wind River’s Applications Footprint
Finance & HRGeneral LedgerAccounts PayablesAccounts ReceivablesCash ManagementFixed AssetsCollectionsPurchasingCustomers OnlineHuman Resources
Learning Mgmt Systems
iLearning3rd party Bolt-ons
Marketing & SalesSiebel AccountsSiebel ContactsSiebel OpportunitiesSiebel QuotesSiebel CampaignCustomers Online
Security & Monitoring10G GridOID – Single Sign On
Order ManagementOrder ManagementAccounts ReceivablesAdvanced Pricing
Plan to FulfillMRPInventoryItem/BOMWIPServices
TeleServiceiSupportService ContractsInstall BaseProject MgmtProject Resource MgmtTime & LaboriExpenseProject AccountingProject Billing
Business Intelligence6i ReportsDrake – Rich EULsPortal – BI Dashboards
© 2005 Wind River
Daily Revenue Recognition Solution Overview
7 © 2005 Wind River
Business Issue
• Wind River has subscription and maintenance contracts of variable lengths
• Lack of flexibility in Oracle variable accounting led to incorrect system revenue recognition for most ratable contracts
• Large contracts adjusted by individual manual journal entry
• Smaller contracts adjusted by “convention journal”• Entire process subject to higher level of risk due to the
amount of manual processing• Added complexity to revenue close and to revenue and
deferred revenue reconciliations
8 © 2005 Wind River
Scope
• Enabling daily revenue recognition calculation for all operating units. Manual revenue calculations using spreadsheets and manual journal entries will be discontinued resulting in lower cost, productivity gains and risk reduction.
• Business Units: Wind River Worldwide Finance– Americas (US, Canada)– EMEA (UK, France, Germany, Italy, Sweden, Netherlands, Israel)– Asia Pacific (China, India, Korea, Singapore, Taiwan)– Japan
9 © 2005 Wind River
Legacy Manual Process
4.RevRec
5.GL
Interface
7.Import fromGL Interface
6.GL
Interface Table
8.1Cal
Rev Adj
8.3Enter
Adjustments inADI
8.4Import
Journals
8.5Post
Journals
BAU
8.2WR RevAdj
3.Auto
Invoice
2.Pre
Auto Invoice
1.AR
Interface Table
Red boxes indicate manual process
10 © 2005 Wind River
No re-work Required
New Process
4.RevRec
5.GL
Interface
7.Import fromGL Interface
6.GL
Interface Table
8.1Cal
Rev Adj
8.3Enter
Adjustments inADI
8.4Import
Journals
8.5Post
Journals
BAU
8.2WR RevAdj
3.Auto
Invoice
2.Pre
Auto Invoice
(Add module to insert new rules & Update RA Interface Table
1.AR
Interface Table
Red boxes indicate manual process
11 © 2005 Wind River
Approach
• Order is booked & shipped with accounting rule “WRS Variable”
• Before Auto Invoice runs, a bolt on module will update the “WRS Variable” with a new rule based on the beginning and end dates of the service agreement and the length of the agreement.
• These new accounting rules have been created in the system as part of the solution deployment.
• Next steps are Business As Usual (BAU), i.e. Run Auto Invoice, Revenue Recognition, GL Transfer …
Above approach is applicable for invoices created after go-live from OM and SC Modules. All old invoices (i.e. created before go live) will continue to use the “WRS Variable” accounting rule. Current biz process will be followed for old invoices.
12 © 2005 Wind River
What are the New Accounting Rules?
Start Date End Date Comments New Rule Name
10-Jan-2006 03-July-2006 There are Seven Month Periods•First month Prorated for 20 days•Last Month prorated for 3 days and •5 months in between prorated for 30 days each
D10-5-D3
18-Jan-2006 10-Nov-2006 There are Eleven Month Periods•First month Prorated for 12 days•Last Month prorated for 10 days and •9 months in between prorated for 30 days each
D18-9-D10
25-Jan-2006 25-July-2007 There are 19 Month Periods•First month Prorated for 5 days•Last Month prorated for 25 days and •17 months in between prorated for 30 days each
D25-17-D25
Accounting Rule Type: ’Accounting, Fixed Duration’
Accounting period type: Month
Average Month Days : 30
13 © 2005 Wind River
Realized Business Benefits
• Plug and play solution• Improved accuracy of revenue - achieved objective of daily
calculation convention• Reduced complexity in close process and resulting in a
faster close• Correct accounting distribution is visible in A/R• Did not increase the number accounting distribution lines in
A/R and G/L• No additional manual G/L entries were required• Improved the reconciliation process• Leveraged existing reporting structure without having to
make any changes to reports• Easy to test and audit – beauty in the solution’s simplicity• Approved by our auditors• No impact of upgrades on solution
© 2005 Wind River
WIN
Wind River, the global leader in device software optimization (DSO), enables companies to develop and run software faster, better, at lower cost, and more reliably.
15 © 2005 Wind River
Backup slide - Pros and Cons
PROS: – Will utilize the Standard Oracle functionality with minimal customization– Revenue distributions will be visible thru AR.– No journal or GL adjustments will be required.– Solution is upgradeable and supportable.– Solution will not increase the number of lines in AR or in GL.– Extension will be written as in a manner to easily facilitate decommissioning at
a later date.– Little to no user intervention in creating and maintaining the rules.– Minimizes re-work to replicate additional reporting.– Will run automatically prior to Auto Invoice, so there will be no timing
differences in AR.– “ Oracle” Team liked this approach over other approaches (because it was non-
invasive).
CONS:– Daily “rules” will be created and maintained behind the scenes so there will be
no visibility thru applications. – System will have to generate accounting rules and populate the accounting
rules tables (non standard) , 60K rules will be created