Control Checks 


Revrec is designed with in-built controls and checks to help you meet your SOX compliance requirements. For example, RevRec helps you identify invalid or missing data, unusual or uncontemplated use case scenarios that warrant a second look, or software issues that may have impacted your data. Once a potential issue is identified, RevRec alerts you and provides detailed information, including the full description of the issue, an analysis of the potential impact, and the proposed resolutions, so you can review and resolve the issue.

RevRec considers process control and validation to be very critical. The Control Checks feature gives you a tool to enhance the issue identification and resolution process. RevRec helps you with the following checks:

Checks Description
Integration with Source Systems To ensure that RevRec has captured the data correctly and completely when integrating with third-party systems, such as CRM for contract information or Xero for invoicing data.
Data Validation To ensure that the data passes RevRec's quality checks. For example, a multi-currency transaction invoice should include the currency code for the invoiced amount.
Business Logic Check

To ensure all validated invoice and sales order data is processed by RevRec properly. Some additional business logic checks are:
proper allocation of transaction price to performance obligations under the contract.
the revenue recognized over the contract term should be equal to the allocated transaction price.
when both contract and billings/invoices data are provided, the total billings should be equal to the total transaction price/contract value.
Accounting Journal Entries To ensure that accounting journal entries are created correctly and capture the recognized revenue.

RevRec conducts these checks automatically to ensure that any exceptions or issues are promptly identified.

Working with Control Checks 

RevRec conducts the checks automatically and sends notifications to users when a control issue is identified. These issues can be tracked on the Control Checks component of the dashboard.

When you click the Control Checks alert icon, RevRec opens the Control Checks page. The top bar lists the areas that RevRec checks for potential impacts including Bookings, Invoices, Revenue, and Deferred Revenue. In addition, RevRec highlights the specific impacted area of the issue. Following is an example where the issue impacts the Recognized Revenue:

The Control Errors section displays additional information. When you hover your mouse over the information icon, you can see a tooltip with a brief description of the issue and the estimated impact.

There are additional options to Apply Proposed fix, Ignore this error, and Download Analysis Report. Click the download icon to review the detailed analysis along with the proposed data fixes in an Excel file and you can then decide whether you want to apply the resolution or ignore the issue if the impact is not material. The Excel file comes with multiple tabs such as:

  • Impact summary: The summary tab provides a high-level description of the issue and the potential impact.
  • Detailed analysis: The analysis tab(s) will include the detailed data and analysis so as to allow you to understand the scope and impact of the issue. Note, that there is no specific format the analysis tab(s) will follow, and each issue can use a bespoken format that best suits the scenario.
  • Proposed data fixes: The proposed resolution tab(s) are the standard RevRec bulk-upload formatted data that lays out the data fixes that can correct the issue when processed. You can also make additional changes to the proposed data fixes.

Below is an example of the impact analysis that shows the population of data impacted by an issue and the estimated accounting impact.

You can contact RevRec Support for additional information or clarification regarding the impact analysis or the proposed resolution.

Once you have reviewed the analysis, you can choose to either apply the fix or ignore the issue, depending on the materiality and relevance. If you choose to apply the fix, RevRec will re-process the data contained in the proposed resolution tab(s) and notify you of the process status. If you choose to ignore it, RevRec will bypass the proposed fix. In either case, the issue will be resolved and removed from the control checks list.

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