RevLock is a cloud-based software that enables SaaS+ companies to measure and manage their revenue, helping them compete in a subscription-based world. Chargebee integrates with RevLock to automate and ensure financial compliance with Accounting Standards Codification (ASC) 606 and International Financial Reporting Standard (IFRS) 15 guidelines. You can sync subscription information from Chargebee to RevLock and generate the revenue forecast metrics. This forecast can be used for recognizing revenue on a monthly basis in your accounting system.
Revenue is a core element of the financial function and it is the prime identifier of your business' performance. The revenue recognition principle describes that revenue should be recognized on the income statement in the period when it is realized and earned, and not necessarily when money is received. This means the delivery of the committed product or service must be fully complete for its revenue to be included in the respective accounting period.
However, companies recognize revenue in multiple ways. The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) identified this misalignment and collaborated to create a global standard that defines how companies recognize revenue from contracts with customers.
The following is the five-step process of revenue recognition as defined in ASC 606:
1) Identify the contract: Identify the criteria that must be met when establishing a contract with the customer.
2) Identify the performance obligations: Identify the items to be recognized in the contract.
3) Determine the transaction price: Elaborate on what must be considered when establishing the transaction price, the amount that the business expects to receive for transferring the goods or services to the customer if sold separately.
4) Allocate the transaction price: Determine how the transaction price is allocated across the contract's separate performance obligations (proportionately across the performance obligations in the contract).
5) Recognize revenue: Revenue is to be recognized as the business meets each performance obligation. This can be referred to in the revenue forecast schedule for the entire term.
Chargebee integrates with RevLock to automate the revenue recognition process with ASC 606 and IFRS 15 regulations. You can sync subscription information from Chargebee to RevLock to generate real-time analytics and revenue forecast metrics. This forecast can be used for recognizing revenue on a monthly basis in your accounting system.
To configure RevLock integration in your Chargebee site, follow these steps:
Log in to Chargebee, click Configure Chargebee > Third-Party Integrations > RevLock > click Connect.
Enter the following mandatory details to connect to your RevLock account:
Once the above details are submitted, you will receive an email to your registered email address containing RevLock credentials to access your RevLock site. Chargebee will create an API Key to link to your RevLock account and data from Chargebee will be sent and synced via this API Key.
Click Confirm to finish the setup.
This will connect your Chargebee site to your RevLock account. RevLock can now obtain data from your Chargebee site every 24 hours and generate the forecast schedule reports automatically.
This is a one-way integration from Chargebee to RevLock. After the set up is complete, RevLock automatically pulls information required for revenue recognition from your Chargebee site. Sync runs once every 24 hours.
If you want to stop Chargebee from syncing subscription information to your RevLock account, you can click the Unlink integration link to unlink the connection.
If you are sure to unlink the integration, your API keys will be deleted from Chargebee and you will no longer be able to sync data to RevLock. Click Confirm to complete the action.
If you want to connect again to the same RevLock account, you can click Connect and repeat the configuration steps as mentioned earlier.
Revenue Recognition reports display the growth of a company in terms of bookings and revenue streams. These reports can be used for internal analysis, which provides an easy way to look at the overall growth and outlook of your company. You can also have a customized view on the revenue generated by each product or customer on a monthly or yearly basis. Once Chargebee syncs your subscription data to RevLock, you can view the revenue and accounting numbers in detail using the reports shown below:
Integrate with RevLock now to sync customers, subscriptions, invoices, credit notes, unbilled charges, and more. Click here to learn more about the Chargebee - RevLock integration.