Articles on: Setup

Quick Start Guide

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 in accordance with ASC 606.

Sales Orders – The sales order includes all of the information related to the contract with the customer. This may include multiple products and/or services.

Billing Schedule – Agreed upon invoicing terms, critical to calculating Deferred Revenues (Liability).

Recommended Steps

Step 0: Get familiar with REVLOCK by watching our how to Create a new Sales Order video

Step 1: Populate your list of products and services

Step 2: Enter the Sales Orders

Step 3: Populate Stand-Alone Selling Price Rules

Step 4: Update Delivery Log

Step 5: Enter Invoicing Information

Step 6: Get Familiar with REVLOCK Features and Functionality

Step 1: Setup Products and Services

Notice the “New Product” page asks for the term for the product. REVLOCK will use this term to determine the active period for a sales item on any order with this product, unless the term or service end date is explicitly specified in a particular order.

We recommend that you enter all of your current products upfront, which makes it easier to just select the product code when provide order information.

Existing products are listed on the product page as shown below;

Products are searchable by name or product code. Product details can be viewed, products can be edited, and new products can be added. Each time you enter a “Sales Order” existing product will be populated.

If you forget to add one to the Product Page, no worries. REVLOCK will prompt you if a sales order contains a product not on this list and you can enter it on the Sales Order Screen.

Step 2: Entering Sales Orders

The Product Name will provide a “drop down” menu of items in your products list. Once selected it will populate the list price associated with the product. If the Product Name is not in the drop-down menu REVLOCK will ask if you want to create a product and allow you to enter the product details. Enter quantity, the unit sales price, delivery date and the term of the contract.
If there are multiple line items in the Sales Order, select “Add New Sales Order Item”. Once saved, Sales Order Items are automatically matched to the appropriate Stand-Alone Selling Price Rules.

Step 3: Enter Stand-Alone Selling Price Information

(1) If the Stand-Alone Selling Price Rules are not set-up, REVLOCK will prompt you with an error message.

(2) Expand the Error Message by clicking on the right side of the item

(3) Select “SSP Not Found Click to Create New?”

(4) Enter “New SSP Rule”

Standalone Price Policy – Drop down choices including dollar amount, discount percentage range, discount dollar, residual, etc.

Revenue Recognition Rule – Drop down choices including pro-rata, as performed, proportional performance.

Commissions Recognition Rule – Drop down choices include as incurred or pro-rata.

Once saved, REVLOCK remembers these rules and applies them to future sales orders of the product and/or services. There is no need to re-enter once a rule is saved. Rules can be edited under “Settings”/”Stand-Alone Selling Price Library”

Continue adding your sales orders and where prompted configure your Stand-Alone Selling Price Rules. You will not be prompted for Stand-Alone Selling Price Rules previously configured.

Step 4: Record Delivery

Revenue is recognized as performance obligations are satisfied. Revenue from pro-rata arrangements is automatically tracked and recognized in REVLOCK. On the other hand, revenue

On the other hand, to properly track and recognize revenue resulting from Point-In-Time and Proportional Performance delivery information must be entered into REVLOCK.

(1) From the “Sale Order Screen” select “Service Delivery”

(2) Items requiring delivery information will appear in a drop-down menu

(3) Select Edit then select “Add Delivery Log”

(4) Enter delivery information

Delivery information can be entered as quantity (e.g. hours) or percentage complete. For example, if 50 hours were delivered this could be entered as 50 hours or as 50% complete.

Step 5: Enter Invoicing Information

(1) We recommend entering invoices by customer. Selecting “Customers” from the Navigation Bar takes you to the Customer Listing Page

(2) Select a customer; you will be taken to the “Customer Detail Page”. We have selected Wayne Enterprises.

(3) Select the “Invoices” Tab and select “Add New Invoice”

Invoicing information can be entered as the invoices are generated or if you are on a regular invoicing schedule, you can enter them according to the schedule. It is important to make sure the invoice date is correct since this directly impacts your deferred revenue roll-forward.

Step 6 Get familiar with REVLOCK features and functionality

Congratulations now you have everything in REVLOCK!

You can get familiar with some key features, functionality and reports by clicking here.

Updated on: 04/06/2021

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