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Industry: High Tech Enterprise Software, Hardware & Services
Annual Rev: ~$700m (public)
Employees: ~2600
VRNT (Nasdaq traded)
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| Verint is the leading provider of Actionable Intelligence software, hardware and services solutions for enterprise workforce optimization and security intelligence with over 10,000 organizations
in over 250 countries. |
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| http://www.verint.com |
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| Verint Systems Inc. |
| Automating Multi-Element Revenue Recognition in Oracle |
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| Overview |
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| Verint Systems has grown significantly through mergers and acquisitions over the past few years. It has 3 distinct global business lines selling complex multi-element deals comprising of software, hardware, maintenance contracts, services (hosted or managed, installation, consulting and training. This has posed significant operational challenges as a result of different business models; disparate financial, sales and ordering processes and systems. However, the biggest challenge is with revenue recognition. A strategic initiative was identified for standardization of enterprise revenue and billing management on a single platform. The goal was to provide a solution that automates the US GAAP requirements for revenue recognition (SOP97-2 and EITF08-1 and 81-1) and help in streamlining the contract to revenue process, company-wide. Aquarius, revstreamTM product was chosen to become the global standard for Verint. |
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| Challenge |
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 Time consuming non-systematic manual calculations for Relative Selling Price/VSOE/Carve outs.
Very Manual (outside oracle) revenue recognition and cogs deferrals.
Current Oracle ERP application lacks the flexibility to define complex evolving revenue recognition rules such as SOP97-2 and EITF 08-1.
Inability to separate billing from revenue recognition process.
Multiple system and non-standard quote to revenue processes.
Compliance risks due to semi-automated legacy system to perform revenue recognition, billing & month-end reconciliation.
Inability to quickly and accurately provide revenue reports and projections internally to executives and to the street for guidance. |
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| Solution |
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aquarius was engaged for this effort for their expertise in hi-tech industry, domain expertise in software revenue recognition and oracle financials experience. aquarius, “revstreamTM” revenue automation engine was configured and implemented in less than 16 weeks to provide a single system on the oracle platform to manage Verint’s complete revenue accounting lifecycle.
key capabilities:
Automated revenue allocation based on EITF08-1 and SOP97-2.
Automate calculation of "carve-outs" based on VSOE.
Automate revenue scheduling based on business events.
Automate revenue deferrals based on contractually specified acceptance criteria.
Configure complex revenue recognition and billing rules ex: define substantive rates and rule mapping for term or carve-outs.
Automatically perform "complete arrangement analysis.
Automate approval of transactions based on pre-defined thresholds.
Perform reviews, adjustments, approvals from a central workbench.
Automatically create distributions and post to GL.
Billing and revenue processes can be managed independently.
Segregation of duties (SOD) and audit trail reports.
Multi-org and Multi-currency enabled.
Revenue Management reporting and using Oracle Discoverer.
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| Results |
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Highly automated, efficient and accurate revenue scheduling, allocation and accounting process.
Single, integrated and standardized global revenue platform to provide accurate and timely daily revenue reporting and forecasting.
Compliance risks minimized and mitigated with the use of approvals, exception reporting, audit trails and SOD.
Increased productivity of finance team - standard process and "one revenue system".
Scalable and flexible platform to support future product lines and evolving business model.
Single source of truth for full financials (billing, revenue, credits, cash, collections, GL) on Oracle.
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