Xactly Simplifies Accounting for Sales Commissions Under ASC 606/IFRS 15
Xactly has added functionality to its Commission Expense Accounting (CEA) solution to account for the new regulations contained in ASC 606/IFRS 15.
The automated solution ensures sales commission data integrity while enabling enterprises to adhere to the new accounting requirements with full capitalization and amortization, dynamic true-ups, and a streamlined reporting process.
"The new requirements introduced under ASC 606 and IFRS15 present an opportunity to produce a more accurate accounting that supports better business decisions, but not without the addition of substantial complexity to our revenue processes," said Udit Tibrewal, chief accounting officer at Sitecore, one of several firms that have already selected Xactly CEA to manage their commission accounting needs, in a statement. "Because it integrates seamlessly within our existing environment, Xactly CEA provides a secure system of record that streamlines our ability to ensure regulatory compliance and gives us confidence in the accuracy of the data that is used for all calculations and reports."
The announcement comes less than three months following Xactly's acquisition of Obero and further extends Xactly's sales performance AI platform with a fully integrated solution that simplifies, automates, and ensures compliance to account for commissions under the new revenue recognition standard.
"As enterprises face increasingly complex regulatory requirements, both in the U.S. and internationally, it's clear that manual solutions can't adequately scale to meet those obligations," said Christopher Cabrera, founder and CEO of Xactly, in a statement. "Combining Xactly's powerful commission calculation engine with Obero's advanced accounting management, we are bringing to market the industry's most comprehensive solution for managing commissions under the new revenue recognition standard."
Xactly CEA automates and streamlines the process of capturing, recognizing, and reporting on sales commissions, also referred to as the incremental costs of obtaining a contract, as required under ASC 606 (IFRS 15). Capabilities include the following:
- Dynamic amortization schedules, helping companies automatically true up sales commission capitalization and amortization balances;
- An extensive library of out-of-the-box summary and detailed level reports, including an accounting model dashboard, amortization schedules, accounting model comparisons, and summary roll-forward by group;
- Support for both full and modified retrospective approaches; and
- A clear audit trail.
Xactly CEA also integrates with financial and technology systems, managing any number of accounting books and interoperating with all downstream accounting ledgers.