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Tensoft RDM: An Inside Look with Tensoft’s CEO

Over the last twenty years, Tensoft CEO Bob Scarborough has implemented or managed over 150 business software solutions for a wide variety of industries. In addition to his system expertise and broad industry knowledge, Bob has designed a number of highly sophisticated custom and out-of-the-box software applications. Tensoft’s latest release is Tensoft Revenue and Deferral Management (RDM), which addresses the business needs of technology companies with complex revenue requirements. Recently, Tensoft Marketing Associate Alejandro Barajas caught up with Bob to ask him about RDM.

BARAJAS: Could you provide some background on Tensoft’s new Revenue and Deferral Management module for Dynamics GP? What are the business needs that it addresses and what sort of companies will benefit from RDM?
SCARBOROUGH: Tensoft’s new Revenue and Deferral Management module grew from our experience working with technology company revenue requirements. Almost every industry we support has unique needs that impact revenue recognition. Additionally, management of revenue in a systematic way has a high value add to companies: streamlined business processes, efficient time to revenue recognition, and fully auditable and traceable processes.

Tensoft semiconductor customers will benefit from distributor revenue management and support for ship and debit contracts. Software customers will benefit from revenue contract management, carve outs, and recurring billings. Technology manufacturing concerns will benefit from support of FOB revenue recognition delays and application of SOP standards to revenue. Many companies can benefit from planning or phasing the timing of revenue recognition, as well as support for sales related expenses (royalties, marketing credits, margin costs).

BARAJAS: Can you describe some of the key functionality that RDM provides?
SCARBOROUGH: The initial core functionality focuses on revenue and COGS recognition. Four main revenue models are supported: acceptance based (revenue postponed until customer acceptance), distributor based (revenue recognized based on distributor sales or POS information), OEM or Royalty based (invoicing based on OEM contract reporting) and license based (variety of revenue models that support phased revenue recognition and carve outs).

These revenue models can be linked together as business process routes — so you could have a customer acceptance step prior to a contract revenue model. We are handling many of the complexities in revenue recognition right from the start. We are also supporting a fully integrated solution — one that reviews invoices from Microsoft Dynamics and posts the revenue back to Dynamics in a closed loop, efficient revenue model.

BARAJAS: Typically, how do companies that don’t have RDM manage their revenue management needs?
SCARBOROUGH: Well, most companies manage this in spreadsheets. This has a number of issues. The time from invoice to revenue recognition is slowed due to manual processes and required safeguards on the manual processes. Significant time is required from a senior revenue accountant to manage the detailed transactions. At the same time the data repositories are not easily combined and formatted for reporting and analysis. Senior staff is underutilized and over burdened — never a good combination. Finally, spreadsheets and related manual processes are less auditable and traceable. A fully automated solution allows for easier auditor review and acceptance, as well as improved internal controls.

BARAJAS: What benefits can companies that use RDM expect?
SCARBOROUGH: Companies should expect consistent, streamlined revenue recognition in a fully auditable and traceable system. They should expect full integration with their ERP system. They should expect to recognize revenue faster in a justifiable manner. They should also expect more information for improved revenue analysis — with available staff time to review.

BARAJAS: How is RDM sold?
SCARBOROUGH: Tensoft sells RDM through channel partners and directly to our ERP customers.

BARAJAS: What does the product roadmap look like for RDM?
SCARBOROUGH: Right now, we are very focused on the full set of needs related to revenue and related cost recognition. We are focused on revenue analytics and dashboards to add insight for customers. We are also focused on tight integration with the Microsoft Dynamics product line and Microsoft technology stack.

BARAJAS: Thanks for your insight today!

For further information, please contact Caprice Murray, Tensoft Director of Business Development, at 888-450-4030 x406 or at caprice@tensoft.com