Revenue Recognition Differs for Eto Manufacturers

by : Thomas Cutler



Karen McDonald, accounting manager, MeteorComm singled out Encompix's revenue recognition feature as a product differentiator. Clearly, revenue recognition is an important issue for any project-based manufacturer building complex products with long lead times.

Encompix (www.encompix.com) a business unit of Made2Manage Systems, has filled the manufacturing software requirements of engineer-to-order companies since 1992. The company name reflects a commitment to developing business application solutions that encompass the complex areas of project-based and job-based manufacturing. Encompix provides ETO manufacturers with a competitive advantage by improving bottom line results.

Recently Bryan Furtaw, treasury & systems controller, Hallmark Tools in Canada alerted us to an article published in CFO.com. According to a recent survey of financial executives. A full 92 percent of all U.S. public companies use spreadsheets for critical accounting activities in their revenue reporting processes. And that increases the likelihood of compliance failures and financial restatements. The research, which involved 685 companies, was conducted by www.RevenueRecognition.com and IDC and sponsored by Softrax Corp.

"We've just completed the first month using the Encompix revenue recognition feature," said Furtaw. "We found that the system works as designed and avoids the 'hockey stick' effect that our spreadsheet model produced, where all the revenue came in at the end of the job when it was most labor intensive."

About Made2Manage Systems Inc.

With more than 2,150 customers worldwide, Made2Manage Systems Inc. has a 20-year track record of delivering enterprise resource planning software and a broad range of services that meet the unique market specifications of more than 30 manufacturing sectors, including industrial and commercial machinery, fabricated metals, rubber and plastics, electronics, analytical and measuring equipment, furniture and fixtures, durable goods, and metals, wire and cable. Made2Manage Systems' sustained leadership position in the ERP marketplace is built on a commitment to fostering productive, long-lasting customer relationships, developing a quality product line based on unique industry specifications, and providing excellence in customer support and professional services.