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Tensoft Revenue and Deferral Management for Distribution Channels (RDM/D): An Inside Look with Tensoft’s RDM/D Expert

Tensoft's Revenue and Deferral Management product expert, Dan Berube, has helped an array of semiconductor and high tech customers tackle their most complex revenue management issues. Below is an in-depth interview with Dan and Tensoft Marketing Associate, Alejandro Barajas on how RDM/D is helping customers improve accuracy and efficiency when managing revenue through distributor channels.

BARAJAS: What are the critical business needs that Tensoft Revenue and Deferral Management for Distribution Channels (RDM/D) addresses?
BERUBE: RDM/D targets customers that sell their products through a distributor. In this case, revenue and cost may be deferred until point-of-sale (POS) data is sent from the distributor identifying the end customer. RDM/D defers that revenue, which it automatically recognizes -- along with the associated cost -- when the POS data is received from the distributor. It also gives our customers more direct visibility into the end-customer, price points, and their targeted markets.

BARAJAS: Are these issues unique to particular industries? What industries are most affected, and why?
BERUBE: Any industry can be affected if their products are sold through a distributor and end-customer data is required for revenue and cost recognition. Also, a customer that would like additional reporting capabilities and visibility into end-customer data is affected as well.

BARAJAS: Typically, how are these needs addressed?
BERUBE: Many companies use worksheets, email and other unstructured data as workarounds for these complex issues, which invites errors and duplication. RDM/D addresses these issues automatically by providing data structures and keeping the data all in one central location for more accurate revenue reporting and cost recognition.

BARAJAS: So Tensoft RDM/D streamlines these complex processes?
BERUBE: Yes. RDM/D streamlines the processes by automating the invoice received from the POS data. Rules can be created, so that as people act on data, the correct entries and data are captured. This eliminates the need for external data and creates a central place for it to be viewed.

BARAJAS: What are some of the benefits that Tensoft RDM/D customers can expect?
BERUBE: Customers can expect improved and broader visibility into their sales, which helps reduce price erosion and overpayment of channel incentives. They can easily track compliance of customer contract commitments by understanding the pricing to end customers through the channel and to ensure appropriate pricing. RDM/D customers can also improve their efficiency by implementing a consistent and controlled reconciliation of POS data and provide a full audit trail. In the end, regulatory compliance is simplified by using RDM/D, which supports AICPA, FASB and SEC regulations, and Sarbanes-Oxley Section 404 requirements. Customers will also be able to speed up their audits with complete transaction history, detailed reporting, and controlled processes.

BARAJAS: Tensoft has two Revenue and Deferral Management products: Tensoft RDM and Tensoft RDM/D. What are some of the key differences between these two products?
BERUBE: RDM/D was created to specifically handle sales through distributors by tracking distributor on-hand quantities, while automating any price credits a distributor may get for selling a product at a certain price. RDM is geared for industries that are required to recognize revenue over defined time frames, such as subscription sales.

BARAJAS: How can readers learn more about Tensoft RDM/D?
BERUBE: Anyone interested in Tensoft RDM/D can directly contact Tensoft for further information.

BARAJAS: Dan, thank you for your time. It’s greatly appreciated!

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