Channel Revenue Management Feature List

REVENUE RECOGNITION (VSOE, EITF 00-21, SFAS 48)
Automated booking and recognition of channel revenues including sell-through, sell-in, consignment or combinations in the appropriate fiscal accounting periods, according to appropriate accounting practices and regulations. A detailed audit trail and associated reporting tools are provided to support visibility into the whole process.

Also included is built-in support for VSOE (vendor specific objective evidence) and multi-element agreements that may include bundled line items, tiered pricing, complex discounts, multiple billing methods, and long-term support and maintenance agreements as well as channel specific arrangements like returns, in-transit, stock rotation, right of return, and price protection.

ROYALTY AND LICENSE REVIEW
Entomo's channel revenue management solution supports revenues from both product sales and intellectual property royalties. Support for royalty revenues includes automatic tracking, reporting, calculation and invoicing of royalties based on licensee POS and Inventory reports.

A primary focus of Entomo's royalty management solution is to reconcile licensee reported channel data across multiple level of the manufacturing and distribution chain with calculated values to identify unpaid royalties and gray market activity.

The system accomplishes this through seamless integration with Entomo's channel data services for timely and accurate licensee data feeds. Once this data is received patented reconciliation algorithms analyze the reported data for inconsistencies across licensees and periods so that the inconsistencies can be researched and corrected.

Royalty due reports can then be automatically generated based on the individual licensee's contract, royalty schedules, and terms taking into account sales, inventory or both. This automation significantly reduces the workload of licensing and compliance teams involved in ensuring licensees fulfill their royalty payment obligations and eliminates revenue leakage due to unpaid royalties.

REVENUE FORECASTING
The SmartHub includes the ability to extrapolate revenue trends and build "what-if-scenarios" to support strategic planning. This allows companies to evaluate the impact of changes in future revenue streams on the P&L. and gain a better understanding of how today's decisions will impact the future.

AUDIT AND CONTRACT COMPLIANCE
The SmartHub software supports compliance with revenue recognition rules (SOP 97-2, 98-9, 81-1, VSOE, SAB 101, and EITF 00-21) and other regulatory mandates. It also provides a built-in transactional audit trail for SOX 404 assertions to create a solid foundation for robust internal controls over revenue processes.

FINANCIAL REPORTING
Integration with existing business systems is supported through the automatic generation and export of G/L adjustments for Revenue, COGS, Inventory and Deferred Revenue.

WARRANTY RETURNS & STOCK ROTATION
Entomo offers manufacturing companies a complete solution to simplify and automate the warranty returns and stock rotation processes including elimination of discrepancies between contracted rotation levels and actual rotations. The solutions includes online collaboration on return material authorization (RMA) requests and their disposition as well as tracking of receipts and the automatic generation of credits.