The newly implemented FASB standard ASC 606, and its nearly identical international counterpart IFRS 15, are challenging the way companies calculate commissions. Providing a new way of accounting for revenues on contracts with customers, ASC 606 will have a large impact on sales compensation, as it falls into the category of “incremental costs of obtaining a contract.
The new rules address the increasingly common case of goods and services that are delivered over time, governed by detailed contract terms, such as subscription services.
beqom ensures that Sales Ops can accurately calculate commissions that are compliant with ASC 606 and in line with the guidelines defined by Finance, while all sales incentive earnings and payments are accurate, consistent, and transparent, for trust and compliance in your compensation system.
Download the e-guide below