RevRec provides a comprehensive suite of revenue recognition features that are compliant with Accounting Standards Codification (ASC) 606 and International Financial Reporting Standard (IFRS) 15. Using RevRec you can configure and apply appropriate revenue recognition methods for all products and services.
RevRec helps you streamline the accounting and bookkeeping process for revenue recognition in a highly automated and controlled manner. Your invoice and sales order data can be directly synced from relevant source systems, and processed for revenue recognition with validations done at each step of the process.
The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) collaborated to create a global standard that defines how companies recognize revenue from contracts with customers in ASC 606/IFRS 15.
The following is the five-step process of revenue recognition as defined in ASC 606:
Revenue is not the same as cash received from customers. You can read more about this in our ultimate guide.
In the ASC 606 revenue recognition process, your billing and CRM systems provide the functionality to manage Steps 1, 2, and 3, including identifying the signed contract, contract obligation details, and final price. Chargebee RevRec supports your business with features related to Step 4 (Allocating transaction prices), and Step 5(Recognizing revenue).
Here is a list of some key features of RevRec that add value to your business:
Based on your specific requirements, there are different ways in which you can use Chargebee RevRec for your business, as follows:
While using Chargebee to manage your subscriptions and recurring invoices, if you are looking for a comprehensive set of revenue recognition features, that gives you complete control and flexibility over the process, the Chargebee RevRec is for you.
You can set up and use various features, like Standalone Sales Pricing for transaction price allocation for multi-product sales orders, applying your specific accounting policy on a range of topics such as collectibility assessment, variable considerations, commission recognition, and credit note recognition. In addition to processing your Chargebee data, you can also connect additional data sources (for example, Salesforce for contract information) for revenue recognition. The Chargebee RevRec support team will work along with you through the implementation and configuration steps.
If you are not a Chargebee user, but you are looking for a comprehensive set of revenue recognition features and control functions, you can sign-up and use RevRec directly. It offers direct integration with a range of third-party systems including Salesforce, Stripe, Hubspot, Xero, Quickbook, Intacct, and Netsuite. The Chargebee RevRec support team will work along with you through the implementation.