General Software Question-Tracking Revenue Transactions

[lori]

Hello Everyone,

I am an accounting student and have an assignment that involves writing a business report. I am somewhat confused by the description of the software referred to in the assignment.

The assignment is this:
Your company’s managers have been thinking about purchasing software that will help it track revenue transactions involving payouts to several parties. Find out what kind of software is available, develop criteria for evaluating the options you find, and offer your managers recommendations. In other words, is it worth it to purchase this type of software at all? If so, which is the best choice?

My question is what is meant by "revenue transactions involving payouts to several parties"? I am clearly not thinking outside the box, to me revenue is money coming in. Can anyone shed any light on this?

Also if anyone knows of a better place to post such questions I am open to suggestions.
Thanks.

Lori

 

[JVAcct]

Revenue Distribution software

You are being asked to identify software which distributes company revenue to partners. This primarily occurs in joint ventures. Each partner would have a royalty interest which entitles them to a share of the venture revenue. To automate or not automate would depend on the complexity of the venture. Typical joint ventures have only a few partners. Automating this is practical (and advisable) where the selected solution is low cost. Venture Manager is a free solution for managing joint interests. In the US, oil and gas partnerships may involve thousands of royalty interest owners. In this case, automation is necessary. Many industry specific solutions are available. The cost/benefit of these (they are expensive) would depend on the specific requirements.

 

[lori]

Revenue Distribution software

JVAcct,

Thank you for responding I really appreciate your help.

Lori H

 

[carltonnash]

One software to track revenue transactions is TurboTax. The reason to track revenue transactions involving payouts to several parties is you have a product or service to the buyer and require additional payment to 3rd parties like licensing of the product or service or 3rd parties components.