Revenue Recognition – Are you ready? RGP and policyIQ can help.

RGPnewlogoSmall.pngIf you are in the finance or accounting departments – or if you are a regular reader of our blog – you already know that the IASB and the FASB issued updated standards with regards to revenue recognition in May of last year.  These new revenue recognition standards impact virtually every company across the globe – and while standards are not effective until 2018, companies must start preparing now.

Are you ready?

SWquoteRGP has invested a great deal of time and intellectual capital to prepare our clients for the new “rev rec” standards.  Our industry experts have created assessment and implementation tools that they are using in companies across the world to help prepare for compliance with the new standards.  The impact can be significant and involves people, processes and technology!  Check out our RGP website for an overview of the revenue recognition services offered, and let us connect you with an expert in your area.

policyIQ can help to organize your data!

One of the key aspects of preparation of the new revenue recognition standards requires an evaluation of all existing contracts.  For many companies, simply locating all contracts and pulling the data into a central place can require a huge investment of resources.

Companies have been using policyIQ as a centralized database to capture contracts for many years, and coupled with new rev rec contract evaluation tools developed by RGP, policyIQ can be a powerful tool for revenue recognition preparedness!

Reach out and let us talk about the services that RGP can offer and the value that policyIQ can add!

policyIQ: Support for the Full Contract Lifecycle and Revenue Recognition Standard

Our clients helped us, early on, to recognize that policyIQ is an excellent match for their contract administration needs. Using policyIQ for Risk and Compliance, Audit, or Policies and Procedures, they realized that the features that gave them better control over the integrity of their information, more simplified access to the content, version control, workflow and reporting capabilities, and easy-to-understand-while-powerful security would also be great for management of their agreements and contracts.

Over the years, we have worked with a number of companies to help them bring automation to various areas of their contract lifecycle:

blogsb

Tracking critical attributes, in combination with features like policyIQ’s Custom Alerts, makes it possible to address key business decisions and deliverables related to a company’s agreements, for example:

  • Alert Procurement Manager when a Vendor Agreement is approaching the Contract End Date (i.e. within 30 days of )
  • Alert HR Manager when a new Staffing Agreement is published (trigger to send New Hire Packet to Employee)
  • Customer Contracts
    • Alert Sales Manager when
      • Expected revenue exceeds $30,000
      • The agreement is Approaching Expiration
    • Alert Operations Manager when
      • A Milestone has not been met by our team
      • A Reporting Date is approaching

And with more urgency now that we’re already into 2015, the Revenue Recognition Standard issued in May of 2014 is leading companies to put controls and measures in place to ensure compliance with the standard.

With a few quick adjustments, policyIQ can help by providing a place to capture, track, and monitor agreements and the variables that are critical for compliance. In addition to the fields that you might already be tracking (like the start and end dates of contracts, deliverables, report dates, approval requirements and renegotiation concerns), you can ensure that you’re considering the value of services delivered at various points in time, all associate agreements that may be pertinent, whether those agreements start and end in the same year, and so on.

blogsb2

Have you organized your various agreements in policyIQ? Do you have questions about how to best configure policyIQ so that you can review and monitor your agreements from various perspectives? Have you updated your policyIQ configuration to better monitor critical attributes for compliance with the Revenue Recognition Standard? Reach out to the policyIQ team, support@policyIQ.com, and let us know what your pressing questions are—we’re happy to help!

Make More Efficient Work of your Contract Administration Process

We continue to have clients and potential clients ask about the use of policyIQ for Contract Administration. It has occurred to existing policyIQ users that they can configure templates and folders to better manage all sorts of information—including contracts.

If you are still trying to monitor your agreements in Excel spreadsheets or you struggle to locate contracts because of the method in which they have been stored on your shared drive, getting your agreements into policyIQ will go a long way toward solving your ills. If you would like to look up agreements by contract start date, alphabetical order, by initiating department or by dollar amount, these and any other variables that you can imagine can be configured into your contract templates in policyIQ.

Consider this example:

1302_Contract Example

You are limited only by your imagination.

What questions are posed to your team members? What methods of communication do you have to monitor to ensure that all relevant parties are aware of their responsibilities? How do you track contracts over a specific dollar amount so that they are flagged for higher level review? Contact us to arrange a brainstorming session where we can help you to make more efficient work of your contract administration processes.

Easily Monitor Contract Variables, Deliverables, Milestones, Reporting Dates, End Dates and more!

I was thinking, this morning, about our Legal and Supply Chain customers who have asked us about Contract Management and how to make use of policyIQ for monitoring and compliance. Then, I was thinking about how the tools and practices for monitoring typical contracts can really apply to all sorts of agreements.

Want more info on Contract Management?
We met for a CPE web session a couple of months ago to talk about the use of policyIQ for contract management.  (Click this link to see the video recording of the session.)  While we’re talking this month about amplifying your use of policyIQ to take advantage of those features that demonstrate it is much more than a document repository, I thought I’d remind you of those actionable pieces of information that you can get to easily by using reports.

You’ve heard the saying: “Garbage in = garbage out.”
legal_supplychainIn any case where we’re highlighting the power of reporting, keep in mind that your reports are only as good as the information that you’re tracking. You not only have to be capturing the information in order to be able to report on it, but some field types lend themselves to more reliable results than others. Use List fields (Drop down or multi-select) and give authors of your content a set of choices where possible. This eliminates the data integrity issues caused by misspellings, typographical errors, abbreviations and so on.  Date, currency, and whole number fields are okay, too. Text fields are the least reliable for reporting, but they certainly do have their place and usefulness. Just think critically about what you want to get out before you decide how to lead others to put information in!

What tasks are you responsible for that require you to track down information?
Consider the information that we’re putting in and how this can be useful for producing actionable report results for all types of audiences tracking and monitoring contracts or agreements. Here’s some food for thought:

Legal – monitoring all contracts: Build a Detail Page Report filtering for all pages created from all Contract or Agreement-related Templates. These Templates might have a Drop Down field that indicates the stage of the agreement (Proposal, In Negotiation, Active, Renewal Review/Re-negotiation, Expired) or you may choose to simply Delete expired contracts and agreements so that only active agreements are returned in your Report results.  (Remember that “Deleted” pages may be reported on if you choose to select the relative Stage filter and pages will continue to reside in your policyIQ site until they are “Permanently Deleted”.)

Staffing Agreements – Report on Staffing Agreements (filter #1) with a specified End Date (filter #2) within your Department (filter #3) and be sure to include Compensation Amount as a field on the Template and within the Columns of your report to help you accurately budget resources for the upcoming quarter. Use filters to review all Staffing Agreements with an Employee Start Date in the coming 30 days so that you can ensure that they receive the appropriate New Hire Packet of paperwork.

Customer Agreements – Use filters to narrow down to your Customer Agreements and filter further to see only those with a Projected Annual Revenue over a specified dollar amount. This report will help your team to focus on your high priority customers.

Vendor Contracts – Narrow down one of your Vendor reports to those with Milestone Dates within the last 30 days and be sure to include the Deliverables or Commitments field, so that you can review and hold your vendors/suppliers accountable.

Partner Agreements – Report on Partner Agreements from a number of perspectives to 1) ensure that both parties are meeting the agreement, 2) prepare in plenty of time to renegotiate the agreement if necessary, and 3) Determine if you wish to renew the agreement upon the contract expiration date.

Maybe you already have agreements in policyIQ and are not sure how to construct the reports to get at the information that is most valuable to your team. Or, you might wonder how to build the Templates to most effectively capture the information that will lead to more streamlined management of your contracts and agreements. We have a number of people ready and waiting to troubleshoot and brainstorm with you. Give us a call: 1.866.753.1231. If you prefer, you can email us at support@policyIQ.com.