Xactly Powers Compliance for New Commission Expense Accounting Requirements Under ASC 606
Delivers Solution to Capture, Track, Record, and Report Commission Data at Level Needed under New Guidelines
San Jose, CA—June 20, 2017––Xactly, a leading provider of cloud-based incentive solutions, today announced the general availability of the Xactly Commission Expense Accounting (CEA) solution to power compliance with new expense capitalization requirements for commissions under the Revenue Recognition Standard ASC 606 and IFRS 15. Xactly CEA gives businesses an end-to-end solution to capture, track, record, and report commission data at the level needed for capitalizing commission expenses in accordance with the new guidelines. Using Xactly CEA, companies have the flexibility to report commission expenses based on their specific needs to smoothly transition to the new standard, ensure GAAP compliance, and seamlessly integrate commission data with existing financial systems.
“With the new standard, many companies will need to change the way they track and expense commissions – and spreadsheets can’t deliver the depth of information needed for compliance,” said Christopher W. Cabrera, founder and CEO of Xactly Corporation. “The introduction of Xactly Commission Expense Accounting gives companies a comprehensive solution to organize and report on data to meet the complex requirements for commission accounting under the new Revenue Recognition standard.”
Xactly Commission Expense Accounting: A Simple Solution for Compliance
New revenue recognition standards represent a huge shift for U.S. businesses, requiring many companies to expense over time the commissions paid on sales. To adhere to the standard, companies must now capture a more granular level of data, capitalize commission costs as assets, and amortize them on a “systemic basis consistent with the transfer of goods or services to the customer.”
By leveraging Xactly’s existing commission calculation engine, reporting capabilities, and line-item compensation data model, Xactly CEA provides businesses with detailed commission data at the customer, contract, product level, etc. to support adherence to GAAP guidelines. Including the following features and capabilities, Xactly drives compliance with:
- Generation of the Necessary Data for Capitalization – based on FASB rules and internal corporation policies, commission data must be captured with more details
- Integration with CRM, CLM, and CPQ systems – through Xactly Connect™ to ensure the correct data is used for all calculations and reports
- Flexible Reporting – through Xactly Analytics companies can easily organize their commission data with the details needed for capitalization in their ERP or Revenue Management System.
- Automation of Data into ERP or Revenue Management Systems – through Xactly Connect™ to give businesses greater flexibility and choice, while simultaneously delivering a consolidated view of financial data
Xactly Commission Expense Accounting is available now. For more information, contact Xactly.
Headquartered in San Jose, California, Xactly (NYSE: XTLY) is a leading provider of enterprise-class, cloud-based, incentive compensation solutions for employee and sales performance management. Xactly addresses a critical business need to incentivize employees and align their behaviors with company goals. Our products allow organizations to make more strategic decisions, increase employee performance, improve margins, and mitigate risk.
Our core values are key to our success, and each day we’re committed to upholding them by delivering the best we can to our customers. To learn more about Xactly and the latest issues and trends in SPM software, follow us on Twitter, Facebook, and subscribe to the Xactly blog.
©2017 Xactly Corporation. All rights reserved. Xactly, Xactly Connect, Xactly Commission Expense Accounting, the Xactly logo, and “Inspire Performance” are registered trademarks or trademarks of Xactly Corporation in the United States and/or other countries. All other trademarks are the property of their respective owners.
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