Data Models that Work for Finance
Revenue reporting and accounts receivable management are crucial components of any finance operation, and they are heavily reliant on accurate and timely data. One of the primary sources of this data is the sales process, where customer information, product details, pricing, and payment information are all collected and stored.
Salesforce, a popular customer relationship management (CRM) platform, is known for generating high-quality data during the sales process. This data can be leveraged to streamline revenue recognition and accounts receivable management, without requiring manual intervention or data reconciliation.
There are several options for integrating Salesforce with your enterprise resource planning (ERP) system to manage revenue and accounts receivable:
Lead to invoice: Salesforce can manage the entire invoicing process, including quoting, pricing, order generation, and invoice calculation. Invoice data is then handed off to the ERP for managing accounts receivable. This approach is suitable for larger companies heavily invested in ERP systems for accounts receivable.
Lead to payment: Salesforce can also manage electronic payment processing, with payment information pushed to the ERP for accounts receivable management. This approach is suitable for mid-sized enterprises that want to take electronic payments from a Salesforce property or charge cards.
Lead to ledger: Salesforce can manage the entire revenue process, including quoting, pricing, order generation, and invoice calculation, with AR living in Salesforce. Journal entries are then sent to the ERP. This approach is suitable for smaller companies with recurring revenue products.
Alternatively, companies can take a hybrid approach, combining different approaches for different product lines and ordering channels, leveraging the flexibility of the Salesforce platform.
When considering integrating Salesforce with your ERP system for revenue recognition and accounts receivable management, it's essential to analyze your current architecture and determine the best fit for your business and data. Summit Technologies LLC can help with this analysis and provide guidance on the best approach for your business.