How to test Chargebee with RevRec using sandbox environments?

Scope

Example: Chargebee - Testing with Chargebee

How is the revenue calculated for the Backdating invoices?

How RevRec recognizes the invoices with delayed payment?

How RevRec does catch up with accounting in the current period for the data changed in a prior period?

Summary

In this article, we explain how you can build up an example scenario in Chargebee and then bring the data over to RevRec and see the corresponding revenue arrangement for the subscription. Please refer to the quick instructions below.

1. Clear the data on your Chargebee Billing test site

2. Clear the data on your Chargebee RevRec site

3. Use Time Machine in Chargebee billing

4. Create Customers, Subscriptions, and Invoices on the time machine mode

5. Sync the data manually in Chargebee RevRec

6. Review Sales Orders, Revenue plan, Revenue Elements, Deferred Revenue Rollforward

Solution

In order to test any activities, you can perform them using the Chargebee test site and RevRec test site. On your Chargebee test environment to test using a clean environment, you can delete all the sample data from Settings > Configure Chargebee > Test Site Data > Delete or Repopulate Test site data > Delete all data.

On the RevRectest site, click on the site name then the ellipsis, and select 'Clear'.

Then, you can navigate from Settings > Configure Chargebee > Time Machine. Click here to know more information.

Now, you can create Customers, add a Payment method and create a Subscription. Then, navigate to RevRec > Sync > Invoices > Chargebee and sync the recent changes into RevRec. Refer to this link for more details.

You will see the sync status under History and the status should be in 'Success'

Then navigate to Customers, you will the customer recently created in Chargebee under RevRec.

Click the specific customer, and select Sales Orders to look into the products, contracts, and prices configured in Chargebee.

Then click on Arrangements, to get a detailed view of the items click on Revenue Elements, and for a details view of the data click on Revenue plan (you will also have a graphical view of the data which can be filtered by product). Click here for more information.

You can test three scenarios using the test environment:

1. Backdating invoices

2. Invoices with delayed payment

3. Late Renewals with catch-up adjustments

1. Backdating invoices

You can also test invoices that are backdated in Chargebee using Time Machine, Chargebee, and RevRec test environments.

Note: Backdating invoices are not enabled by default, Contact support to enable for your site.

Once the Backdating feature is enabled, you can test this feature on the Chargebee test site and RevRec test site by following the above steps. Click here to know more about Backdating Subscription and Invoices.

Once you have created past invoices in Chargebee, you need to manually sync those new invoices in RevRec. You can manually trigger an unscheduled sync from Chargebee from Connect Source dialog. Go to Sync -> CONNECT (three cables icon) on the right-hand corner > Invoices > Chargebee > Run Job. Click on the [Run Job] icon button on the Chargebee tile.

Note:
For testing purpose, you need to ensure the backdating invoice date is not before the Accounting period. If not you need to close it and set it within the invoice date. Click here to know on how to manage the Accounting period

2. Invoices with delayed payment

RevRec has the ability to not recognize revenue until a customer makes their first payment. This can be used in cases where you are not reasonably assured of payment from your customers for services they have purchased.

Note: Unpaid invoices will not be recognized in RevRec untill there is some revenue collected for that invoice.

Once the invoice is paid, you can manually sync invoices and it will reflect the invoices in RevRec. Say, for example, we have a subscription created on December 09' 2020 with auto-collection disabled. Therefore there wasn't any payment collected for the invoice.

Hence, the invoice status stays in Payment Due. Also, this subscription will not be reflected in RevRec.

For the testing purpose, using Time Machine we have moved ahead from December 2020 to March 2021 and the payment was collected on March 08, 2021.

After the successful payment, you can manually sync Chargebee with RevRec. Now, this subscription will be available in RevRec with the same billing period.

In our case, since the accounting period is set to March 2021 the revenue in RevRec will display for the billing period from December to March.

3. Late Renewals with catch-up adjustments

This is a similar example as a scenario: 2. For example, On 6th March 2021, we backdated a subscription on 08th December 2020.

After the successful sync from Chargebee to RevRec, you will see this subscription in RevRec, to get a detailed overview, navigate from Customers > Sales Order > Deferred Revenue Rollforward.

You will see the Jan-2021 & Feb-2021 will not be reflected in this report since the revenue was collected only on Mar-2021 for the subscription created on Dec-2020.

Related Article and Documentation

Chargebee RevRec