Question 1

REVLOCK + Chargebee

Accepted Answer

REVLOCK + Chargebee

The REVLOCK Revenue Recognition module works natively with Chargebee. Chargebee + REVLOCK offers a best in class solution that simplifies the complexity of ASC 606 and IFRS 15 compliance. This document explains how to configure Chargebee to ensure compliance with the revenue recognition standards. We have also included a detailed data mapping for the curious.

Chargebee connection to REVLOCK

REVLOCK connection to Chargebee site can be established using REVLOCK interface. Below is a short video that demonstrates how this works.

${youtube}Connect Chargebee to REVLOCK

Configuration of REVLOCK

In order to properly use REVLOCK you need to first configure a few items. We recommend you first get familiar with environments and go through our Quick Start guide first. The Quick Start article will walk you through a manual entry process of items needed for proper revenue recognition. By manually entering a few transactions, you will gain familiarity with the information needed, how it is used and the functionality of the solution.

Setup involves the following steps:

Link REVLOCK to Chargebee
Setup your Standalone Selling Price (SSP) Library
Configure your Posting Process
Conversion of Prior Balances

That's it!

1. Link REVLOCK to Chargebee

You can do this by going into your Chargebee instance and..

2. Setup your SSP Library

The first step

Question 2

Import Data in Bulk

Accepted Answer

Import Transactions in Bulk

Sometimes you just need to import your transaction data from a report or a spreadsheet. REVLOCK allows you to do this leveraging our "Import" feature.

Import Transactions

Importing Transactions

In order to access this you click on Sync -> Import as shown here.

We support importing your transactions in as Microsoft Excel workbooks. Each sheet is a particular type of data (the sheet and column names have to match exactly).

OrderDetails - This represents the sales order details. All the data is presented at a line item level
BillingSchedule - The amounts that are invoiced against the orders, also tracked at a line item level.
ProfessionalServicesDelivery - Delivery of "work" against professional services type activity, expressed in units of work (typically hours).
Reference information about the customer and products.

*Note that if the reference information (products/customers) are already known by REVLOCK (since you entered them earlier, sync'ed them into the system or entered them when you setup the SSP or elsewhere from the user interface) you do NOT need to provide them again.

An example transaction file with contract details is available here. An example file with commissions for each contract is available here.

Question 3

Understanding SSP rules

Accepted Answer

Standalone selling price rules

The standalone selling price is defined as the price at which a vendor would sell a promised product (goods or services) separately to a customer.

ASC 606 allows for several different approaches to establishing standalone price for products sold. REVLOCK enables users to easily define rules that can be used to establish standalone price automatically in full compliance with ASC 606.

Standalone Price Policy

REVLOCK help easy configuration of Standalone Price rule using Standalone Price Policy. What follows explain different Standalone Price policies that REVLOCK supports.

Dollar Amount

When using this policy user will define a numeric standalone price for the product being sold. For example, when sold individually, 1-year SAAS subscription for Product A is $4000.

Dollar Amount

Dollar Amount Range

This policy is used when sales personals have some flexibity in price when selling products to customer. For example, when sold individually, price for 1-year SAAS subscription for a Product A is between $3200 and $3800.

Dollar Amount Range

Discount Percentage

When using this policy user will define a percentage discount that is given to the customer with respect to the list price. For example, when sold individually, 1-year SAAS subscription for

Question 4

Journal Account Mapping

Accepted Answer

Journal Account Mapping allows you to map the internal accounts used by REVLOCK to the actual account numbers you are using in your ledger package / accounting system.

|| To understand how entries are created read about our journal posting process

Mapping Accounts

Once you have connected your accounting system you can use the account mapping feature to select the account you want to use from the list pulled from your accounting system.

Bulk Account Mapping

You can change your account mapping by;

Download your current mapping as an Excel file, change and Upload your new mapping in bulk
Change an individual mapping on the UI

Changing a Single Mapping

Journal Mapping Fields

|| This feature is not supported for account of type Deferred Revenue and Contra Revenue. User should not override Deferred Revenue account or Contra Revenue accounts from what's is set as default at the environment level.

For a simple Ledger configuration you can use the default setup with a single account for each account type, for example a single deferred revenue and revenue account for the company. For more complex setups you can use other fields such as Product Family or Product Type to map

Question 5

Accounting Period

Accepted Answer

The accounting period is a primary time concept in any accounting system. REVLOCK leverages the accounting period to determine what transactional data belongs to which period.

The accounting period is always visible right in the top toolbar.

Accounting Period

Once you set the accounting period the system marks the prior period as "closed" (in my example this would be the month of July) and hence the revenue for that period is closed or locked down and the revenue or any other accounting number for that period cannot be changed.

Prior Period Adjustments

You can still make corrections to orders from prior periods but the net effect of those changes will be computed by REVLOCK by using an internal rewind/ replay algorithm and the change in value will be available in the current period.

Effects of Closing

When you do close a period you will want to post to your ledger at the same time. If you have opted to use automated integration to an accounting system, REVLOCK will automatically post your journal entries for you at this time, if not then you can use our journal summary reports to manually record your ledger transactions at whatever level you choose.

Question 6

Quick Start Guide

Accepted Answer

Once you create an account with REVLOCK and you verify your account you can login and are ready to get started.

||| Note that when you login to REVLOCK you get a test and a production environment. We recommend you setup a sample data set in the test environment first and once you get comfortable move to production.

What you need before you start

There are a few items that you will need during the set-up process:

The Price Book – The price book includes all of the products and services that you offer and the “list price” for each item.
Stand-Alone Selling Price Rules – To comply with ASC 606 revenue recognition standards, companies need to define their Stand-Alone Selling Price Rules.

These rules include two items

|| Stand-Alone Selling Price –The price that a product would be sold for on a stand-alone basis. This Stand-Alone Selling Price is determined by the company’s management and should be reviewed by your outside auditors (if applicable).

|| Revenue Recognition Policy – Under ASC 606, revenue is earned as performance obligations are satisfied. The identification of performance obligations and the revenue recognition policy are determined by management and should be reviewed by your outside auditors (if applicable).

The Stand-Alone Selling Price Rules are configured in REVLOCK’s Stand-Alone Selling Price Library™. This information is applied to each line item of each contract to properly recognize revenue

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