Usage Revenue Recognition with Configurable Rules
Consumption-based pricing models provide businesses and customers with greater flexibility, cost control, and scalability, as they ensure that costs are directly tied to actual usage or consumption, fostering a more efficient and customer-centric approach to pricing.
The pricing model varies based on usage tiers, such as the number of users or data storage used by a SaaS provider.
Credit Burndown / Prepaid Usage
Invoicing is done in advance of the services/software being provided. Revenue recognition does not take place until periodic usage data is available. At that point, the usage data draws down the balance of the contract liability (deferred revenue) and revenue is recognized. The remaining contract liability sits on the balance sheet until fully recognized over time.
This pricing model charges customers only for the amount of product or service they use, without requiring any upfront payment or long-term commitment.
Minimum Commitment and Overage
This model enables businesses to charge customers at their commitment level on each invoice, providing predictability in revenue expectations based on their usage amount. Any overage can be accounted for with additional invoicing and revenue recognition.
Don’t let system limitations hinder growth; we understand the headaches associated with product customizations, so we built RightRev with the ability to accommodate any consumption revenue recognition use case out-of-the box.
Transform your accounting team into a growth driver instead of a cost center
Achieve up to 100% revenue recognition automation for zero-touch accounting
in customer revenue processed through RightRev
Close the books 5X faster so you can spend time on more strategic initiatives. In a third-party analysis, RightRev demonstrated a 5X faster close than alternative solutions.