2 weeks
100%
Deferred Revenue
The Challenge
When Simplismart sold a credit bundle to a customer, cash hit the bank. What did not happen automatically was tracking how those credits were consumed across 750 pricing dimensions and recognizing revenue as each performance obligation was satisfied under ASC 606.
Revenue from AI infrastructure is usage-based. Every GPU minute consumed, every token processed is a performance obligation satisfied and revenue earned. Until those events are tracked and matched against contract terms, the revenue sits as deferred on the balance sheet. Simplismart had no system doing that tracking in real time.
At month-end, the finance team rebuilt the picture manually: usage logs pulled, billing records cross-referenced, deferred and recognized balances separated by hand. The close ran 2 weeks late every month.
BFSI and healthcare procurement teams added another layer. These customers go through every invoice line. When they asked for billing documentation, finance had to reconstruct the audit trail from source data. That was a multi-day exercise every time it was requested.
"750 pricing dimensions, each with different rates per customer, all tracked manually at month-end.
The finance team was spending 2 weeks on a close that should take 2 days and every time a procurement team asked for documentation, they were rebuilding the same calculation from scratch."
— Shubhendu Shishir, Simplismart
