About Chargebee RevRec 

Overview 

Chargebee RevRec provides a comprehensive suite of revenue recognition features compliant with Accounting Standards Codification (ASC) 606 and International Financial Reporting Standard (IFRS) 15. RevRec automates the capture and analysis of your revenue contract data and provides the required financial reporting.

In this document, we are going to review some core concepts in RevRec so you can familiarize yourself with how RevRec works.

Key Features of RevRec 

Here is a list of some key features of RevRec that add value to your business:

• RevRec is fully compliant with ASC 606 revenue recognition capabilities that cover your sales activities right from contract changes (renewal, modification, cancellation), to selling through partners or reselling as an agent with commission arrangements and conducting multi-currency transactions.
• It is a versatile application that comes with built-in checks and validations based on industry best practices to ensure auditability, compliance, and controls.
• It serves as a revenue subledger with detailed records at the customer and contact level, with customizable General Ledger (GL) mapping, direct journal entries posting, flexible close process, and accounting period support (such as the 5/4/4 calendar).
• RevRec is easy to use with an out-of-box integration with a wide range of third-party systems, such as Salesforce, Hubspot, Stripe, Quickbooks, Xero, Intacct, and NetSuite.
• RevRec comes with a modern, intuitive web UI and Microstrategy-based reporting package that provides insight into your revenue, from reviewing the revenue allocation in a multi-item contract to spotting the major revenue drivers impacting your business.
• It is capable of supporting more complicated revenue recognition scenarios such as variable consideration, collectibility assessment, and material rights.

RevRec Workflow 

The revenue workflow starts with your subscription or sales order records brought into RevRec either automatically or manually. If you are tracking your sales data in a CRM or billing system, you can integrate them with RevRec to automate the inflow of these orders into RevRec. If not, you can enter them directly on RevRec or import them in bulk and manually track changes on these transactions.

For each sales order record, RevRec automatically creates a revenue schedule in accordance with ASC 606 and IFRS 15 based on the revenue recognition rules. You can review the revenue arrangement for each contract and the treatment for its respective performance obligation, how the standalone price was determined for each product or service, what was allocated, how it gets recognized, and so on.

Similar to automating your revenue recognition process, RevRec also allows you to automate your expense workflows for any expenses that were incurred directly as part of obtaining and/or executing the sales order.

The data is then processed with validations done at each step of the process. You can review RevRec's process results through Control Checks, Data Process Summary, Data Error Reports, and Revenue Recognition Results or Reports.

You can finally manage your revenue accounting sub-ledger by:

• configuring General Ledger(GL) accounts and mapping rules,
• generating and posting the journal entries, and
• managing your accounting period including closing an accounting period (or when needed, reopening a closed accounting).

Using RevRec 

We currently support the latest versions of Google Chrome and Apple Safari. We also recommend that you update to the latest versions of your browser to ensure optimal performance with all features, as these are the best-tested versions with RevRec.

We recommend that you have access to Microsoft Excel (a version > 2008). This will allow you to fully leverage our bulk upload features and download well-formatted reports from our reporting engine.

Security and Compliance 

RevRec comes with a multi-layered approach to protect your account and data, ensuring you have a safe and secure experience while using RevRec for your business. RevRec protects your data from threats by employing strict security controls at every layer from physical all the way through the application layer. RevRec adheres to the current state-of-the-art best practices for security employed by some of the largest US banking institutions. These include secure authentication, authorization, data encryption(both at rest and when in transmission), and role-based access control amongst others.

Learn more about Security and Compliance at Chargebee.