How BANDAI NAMCO Entertainment America Inc. automated revenue recognition in 10 weeks
Recognizing revenue for a gaming company is complex—especially now under ASC 606 and IFRS 15. If you’re in the industry, you know, it’s like any software company but with a layer of complexity on top. There’s a high volume of customers making online purchases of video games and other in-game purchases (also known as microtransactions). Despite that complexity, BANDAI NAMCO Entertainment America Inc., a video game development company and publisher with its headquarter in Japan, deployed RevSym by CallidusCloud as part of their revenue recognition modernization project in only 10 weeks.
“With RevSym, it was easy to set up our policies to automate our revenue recognition under the new guidelines.” Hans Lui, Director - Applications and Operations for BANDAI NAMCO, said.
“With our complex two-step allocation and discount prorate scenarios, we thought it was too aggressive to expect implementation within 12 weeks. But with the help of the team at CallidusCloud, we were able to complete implementation and testing within 10 weeks. We have successfully loaded more than 5,500 invoice lines and configured more than 20 POBs, resulting in a clean close for April.” A typical go-live timeline is 12 weeks or even longer if there are issues along the way, and that doesn’t account for testing.
What made this implementation so successful?
- Bandai had well-defined policies, and CallidusCloud devoted the time to thoroughly understand those policies.
- Both teams—CallidusCloud and Bandai—were very dedicated to the project.
- RevSym has robust out-of-the-box features that allowed BANDAI NAMCO to factor in their policies with no customization, and full RESTful APIs that made integration to Oracle EBS a breeze.
- The CallidusCloud and BANDAI NAMCO teams have good relationships with external, technical consulting firms, delivering advice efficiently.
- RevSym is easy to use, no matter how complex the policies are.
Now, BANDAI NAMCO can access their data from one source, allowing them to see their revenue in real-time. And all of their data is stored in private data centers. After working with BANDAI NAMCO, I can now confidently say that no industry’s revenue recognition is too complex for RevSym by CallidusCloud to automate.
Webinar: Accounting for Commissions and Other Contract Costs under ASC 606
In this webinar, Matt Svetich of Effectus Group will discuss what to consider when preparing for the commission accounting changes under ASC 606 and ASC 340-40.
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Aswin Kurella | May 30th, 2018