Deferred Revenue Solution Automation

A US-based manufacturing company successfully implemented our automated deferred revenue solution using Oracle applications, achieving a zero percent error rate.

Case Summary

SLK’s Client, a US-based Manufacturing Company using Oracle applications, sought an automated solution to recognize advance payments made throughout the month. With SLK’s proficiency, we crafted a flexible and error-free automated solution to meet their needs.

The Challenge

Accurate recording of deferred revenue requires several  key details to ensure the transaction reflects its specific  terms and conditions. These include the transaction date,  payment amount, subscription period, subscription terms,  revenue recognition method, customer information,  accounting entries, adjustments, supporting  documentation, and compliance with relevant accounting  standards. By capturing these details, companies can  maintain proper records, track performance obligations,  and ensure regulatory compliance. 

Due to the complexities in capturing deferred revenue,  business users face a challenging task during month-end.  They must extract information from various Business  Intelligence (BI) reports, perform manual calculations, and  post entries in the General Ledger (GL). This activity is  prone to errors due to the significant effort involved and  the rush to complete tasks with tight deadlines.

The Solution

SLK collaborated with business users across various units  to develop a unified report capable of consolidating data  from different modules. This report serves as a reusable  tool for verifying the accuracy of data and calculations.  Once validated, users can seamlessly post the verified  entries to the General Ledger (GL) during month-end with  a single step. 

SLK’s proficiency in Oracle Applications expedited the  development of a robust report, ensuring it’s not only easy  to comprehend but also highly adaptable to meet various  requirements.

Business Impact

The implementation of our automated deferred revenue solution significantly reduced manual  efforts by streamlining the processes of data generation, validation, and consolidation across  spreadsheets, and manual entries in the General Ledger (GL): 

  •  By utilizing the preview mode report for validations, we achieved a remarkable zero percent   error rate in calculations, ensuring accuracy and reliability for users. 
  • Reduced manual efforts required to gather and consolidate data across spreadsheets,   enhancing productivity and accuracy. 
  •  Ensured complete availability, allowed users to run the programs at any time based on   order shipment schedules. Additionally, users can switch between preview mode   throughout the month for ongoing checks and final mode during month-end once all   validations are completed satisfactorily. 

100%

Efficiency in reducing manual efforts

100%

Availability enabled users to run programs anytime according to order shipment schedules.

0%

Error rate

SLK’s Efforts Showed Quick Results:

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