The cell phone industry has a lot of moving parts. Whether you’re a unit, parts, or accessories distributor or you do cell phone repairs, you’ve got a lot of items to keep track of. Not only do you have to handle all the standard business functions – marketing, sales, accounting, customer management, etc. – but you also have a lot of different kinds of inventory in multiple locations to keep track of.
With the new revenue recognition requirements implemented by FASB, many companies are looking for support on how to manage these requirements. The changes to revenue recognition have an impact on both organizational business processes and configurations within the software that manages revenue. The following article will illustrate considerations when managing the new requirements. ASC 606 has listed 5 core principles to managing revenue: