Think about a world where contracts aren’t buried in filing drawers or lost in email threads. A world where you can easily access important information, automate renewals, and prevent missing income possibilities. NetSuite Contract Management can do just that by keeping track of the contract lifecycle and saving the time and money of businesses. But how did conventional contract management work before NetSuite and how it has changed now? Let’s get a crash course on it through this blog.
Everything You Need to Know About NetSuite Contract Management
Software companies depend on recurring revenue from licensing and contract maintenance to stay in business. Controlling and optimizing these reliable sources is essential to success. However, many software firms today experience revenue losses and customer turnover as a result of their reliance on outdated, inefficient technologies.
This is frequently the outcome of manually managing recurrent revenue tracking and contract renewals. As with any other aspect of your business, managing renewable contracts requires the application of strong management practices.
Data silos are produced by manual procedures and outdated technology, which also make it difficult to see impending renewals. It is challenging to proactively interact with clients, respond to their complaints, and upsell them on additional capabilities due to this lack of foresight.
Software companies may automate renewals, obtain real-time insights into client health, and ultimately protect their recurring income streams by implementing modern subscription-based management software aka NetSuite Contract Management Software.
How Does NetSuite Contract Management Work?
When a contract record is generated, it is originally marked as pending. Consequently, until a contract reaches this stage, contract items are not generated. Once contract items are generated for pending contracts, they become active. A contract that is automatically created upon the occurrence of a renewal transaction is known as a renewal contract. If contract items have not been generated by the renewal contract, you have the option to refuse the transaction.
When you establish a new renewal transaction, the status of a contract record that has been denied renewal reverts to renewal generated. During the renewal process, the status of the previous contract is modified when a renewal contract is generated. The status of a contract that is either rejected, pending, or active for renewal immediately changes to cancel. The script converts expired contracts from active to closed when you run it to close contracts.
The Benefits of NetSuite Vendor Contract Management
There are many benefits of NetSuite vendor contract management including the following:
Efficient Business Processes
One of the numerous issues with renewals is having to keep track of all the different transactions you have with a customer over the course of a year. Contract management enables you to consolidate many sales orders with renewable products that co-terminate and renew annually into a single contract, saving you the trouble of handling numerous contracts for the same customer. This simplified approach guarantees that the renewal procedure is evidently efficient.
Automated Renewal Solutions
To help you manage data and transactions more easily, NetSuite provides automated renewal solutions. For example, software providers that offer both term- and perpetual-licensed goods can use NetSuite’s flexible and robust automated renewing strategy to manage the periodic invoicing of both on-premise and on-demand software licenses.
When the current contract is about to expire, NetSuite will start a fresh sales transaction right away. This reduces client turnover because the sales transaction acts as a prompt to follow up with your customer and get a renewal. Having the sales transaction created automatically saves you time and reduces the potential of errors because there is a danger that it will be pre-populated with client and contact details, including details about renewable products.
Automated Contract Renewal
Businesses usually overlook contract renewal money. Revenue recognition usually happens at the same time as a transaction. Sometimes it’s necessary to handle revenue recognition separately, depending on the type of transactions. The complexity and length of renewal are increased by the fact that this separation of income recognition frequently necessitates the creation of a new procedure.
For the purpose of revenue recognition, NetSuite users are able to work with different sets of dates. This feature makes it possible to accept payments and renew contracts without any problems. It also allows revenue recognition to be managed in a different way without adding further complexity or spreadsheets.
Real-time Insights
Real-time insights and monitoring are required to maximize the recurring revenue stream. When customers renew multiple products or services at once, revenue leakage, customer attrition, and lost opportunities for an upsell occur far too frequently.
As a result, NetSuite’s real-time dashboard displays the contracts that have expired, those that are about to expire, and those that will expire later. This provides you with the information you need to allocate resources to contracts that are about to expire or have already expired in order to preserve recurring revenue. You may customize the dashboard to provide the critical information you need to run your company, giving you total insight.
Modules that Work with NetSuite Contract Management
Because of the smooth integration of NetSuite Contract Management modules, it is regarded as the best. A single business aspect will always be able to link two or more modules together. Below-mentioned are the three NetSuite Contract Management modules:
SuiteBilling
NetSuite’s billing and revenue management features are improved by the potent SuiteBilling module. It is compatible with multiple payment methods, such as usage-based, subscription, and hybrid models. SuiteBilling automates contract billing when it is linked with Contract Management, guaranteeing precise and timely invoicing. Managing recurring revenue and optimizing the whole billing cycle are made easier with the help of this integration.
Fixed Assets Management
The goal of fixed asset management is to oversee the entire lifecycle of fixed assets, from purchase to disposal. When utilized in conjunction with Contract Management, this module facilitates the tracking of contract-related assets, like leased machinery or maintenance resources. It guarantees the precise recording and upkeep of all asset-related data, promoting improved asset use and adherence to accounting rules.
Customer Relationship Management (CRM)
The main NetSuite module for managing client relationships and interactions is called client Relationship Management, or CRM. A single view of client data, including contract history, renewal dates, and service agreements, is made possible by integrating CRM with contract management. By guaranteeing that sales and support personnel have easy access to all pertinent contract information, this integration improves customer service and increases customer satisfaction and retention.
The Features of NetSuite Contract Management
Following are some of the features of NetSuite Contract Management:
Contract Creation & Approval
Direct contract creation within the NetSuite system is possible. Contract templates can be altered to meet your company’s requirements, guaranteeing uniformity and compliance. Before contracts are finalized, the relevant stakeholders must evaluate and approve them, according to the approval workflows.
Multi-contract Management
NetSuite facilitates the concurrent management of several contracts. This is especially helpful for companies that manage many contracts with different customers or suppliers. It makes keeping track of and managing all active contracts simple.
Revenue Recognition
With NetSuite’s automated revenue recognition tools, revenue is guaranteed to be recognized in compliance with accounting requirements. This is essential for upholding compliance and correct financial records.
Uplifts & Discount Management
Complex price structures, such as uplifts and discounts, can be handled by the system. This guarantees proper reflection and management of all the contract’s financial components.
Compliance & Risk Management
The software facilitates the management of legal and regulatory compliance. It guarantees that all contracts follow the relevant guidelines and assists in reducing the risks related to non-compliance.
Document Management
You can organize, save, and retrieve all contract-related documents in one place with NetSuite’s powerful document management features. This facilitates the process of monitoring modifications and updates, ensuring that all papers are current.
Upsell & Returns Management
By managing returns and facilitating upsell chances, the system makes sure that every facet of the contract lifecycle is taken care of. This promotes revenue maximization and protects client pleasure.
Integration with other Systems
Integration between NetSuite and other business systems, such CRM and ERP, enables smooth information sharing within the company. This integration aids in preserving accuracy and consistency in data pertaining to contracts.
Why Choose Folio3
Choosing Folio3 for NetSuite contract management integration offers several advantages:
Expertise and Experience
Folio3 has over a decade of experience in NetSuite development and integration. Our team of experts can handle complex integrations, ensuring a smooth and efficient process.
Customizable Solutions
Folio3 provides fully customizable integration solutions tailored to meet the unique needs of your business. This flexibility ensures that the integration aligns perfectly with your specific requirements.
Wide Range of Integrations
We offer a variety of pre-built, Built for NetSuite (BFN) certified connectors for eCommerce, CRM, payment systems, and more. This extensive range of options allows for seamless integration with various platforms and systems.
Security and Reliability
Folio3’s integrations maintain the same high level of security as NetSuite itself, ensuring your data is protected with the utmost integrity.
End-to-End Support
From implementation to ongoing support, Folio3 offers comprehensive services to ensure your integration is successful and continues to perform optimally.
Would you like to know more about a specific feature or service we offer? You can get in touch with us and check out our resources at Folio3.
Wrapping Up
NetSuite Contract Management tool can single-handedly help boost sales success and overall revenue growth. The system is simple to use and offers a comprehensive, unified picture of customer interactions with your business. It also lets you provide clients who return things discounts.
