If you are a business operating with multiple subsidiaries, branches, brands, or units, you could be tracking their contracts and other transactions separately as independent entities. With RevRec's multi-entity feature, you can view consolidated reports of multiple entities in one place. While each entity continues to manage its own sales orders, invoices, reports, and settings on separate RevRec sites, the consolidated site allows you to view unified reports and track overall business performance.
Let's look at an example. ABC Tech, a consulting company headquartered in California, USA, decides to operate from India and Singapore, with each entity using a different home currency for revenue recognition purposes. To ensure compliance with guidelines established by these countries, each of these entities could be managed using separate RevRec sites. And a fourth RevRec site is created to consolidate the reports in one place.
The Consolidated ABCTech site will let you view the revenue results for all three entities, with each entity's revenue and deferred revenue measured in that entity's home currency. Additionally, you can view the invoices and orders for each entity in the transaction currency.
Contact RevRec Support to enable the multi-entity feature and consolidate your RevRec sites.
While enabling this feature, you will be asked to select one of your RevRec sites as a parent site from which all the site settings and feature-based reports are inherited to the consolidated site.
Each entity in Chargebee has a unique entity_id. You need to set this entity_id as custom fields in RevRec for the customer, product, invoice, and subscriptions in RevRec so that RevRec can directly sync with the entity_id data in Chargebee.
You can consider either of the following ways of integration depending on your business case.
If you have a separate Chargebee site for each of your entity (multiple Chargebee sites), you will need a corresponding RevRec site for each Chargebee site.
If you use a single Chargebee site for all of your entities, there are two approaches to set up RevRec depending on the home currency used by the entities.
When all your entities(parent and child) have the same home currency for financial reporting and revenue recognition, you can integrate your Chargebee site with a single RevRec site. The standard reports on your RevRec site will capture metrics on your home currency and you can drill entity-based data using the additional attribute entity_id.
When your entities use different home currencies for financial reporting and revenue recognition, you need to create separate RevRec site for each of your entities, as RevRec currently supports one home currency for one site. These RevRec sites will connect to the same, single Chargebee site and automatically split and sync data based on the entity_id, so that all transactions are processed.
While the consolidated entity provides the consolidated reporting for all your entities, it does not translate child entities' revenue in their home currencies to the parent entity's home currency - this still needs to be handled in your general ledger accounting system. The revenue and deferred revenue balance are in each entity's respective home currency.
You can use the same approach described above to integrate multiple entities from non-Chargebee systems. For example, if you have multiple Xero organizations and want to integrate them with RevRec for syncing invoices into RevRec, you can consider the above workflows depending on the home currency of your entities.
Once the multi-entity feature is enabled, a consolidated site is automatically added to the site selector drop-down along with your individual entity sites. The following sections cover in detail how you can access and use them.
After you log in to your RevRec site, the left navigation pane displays a site selector that allows you to switch between your sites. The site selector displays the Production and Test environments of all sites that you have access to.
You can continue to access each of your entity sites to manage their respective configurations for revenue recognition, data processing, General Ledger posting, and closing accounting period.
After you log in to your RevRec site, the left navigation pane displays a site selector that allows you to switch between your sites. If you are a user with access to the parent site, you can select and navigate to the consolidated site.
The consolidated site is a read-only environment with a Reports tab where you can navigate and view consolidated reports.
Only users with access to the Parent Entity can access the consolidated site. The consolidated site is a read-only environment where you can review reports.
Ensure that you are closing the accounting period for all entities consistently so that the reporting results are accurate. If you close an accounting period for one entity, you need to do it for all entities at the same time; or leave them all in restatement mode. The consolidated entity will report inaccurate results if the accounting periods of the entities are not in sync.
All standard reports are available on the consolidated site along with any additional feature-based reports that are configured and enabled for the parent entity(and not child entities). Reports on the consolidated site are updated in real-time, whenever there is an activity on a child or parent site.
All reports on the consolidated site come with a new attribute called Entity within the Drill option that allows you to drill Entity on reports.
When your sites have different home currencies, the consolidated reports will display site balances in their respective site currencies and there won't be any cross totals based on a single currency.
The Revenue and Journal Entry reports will continue to display home currencies for respective sites, while other reports will display transaction currencies.
Custom reports created by users in any child or parent sites will not be visible on the consolidated site. Drilling down on reports using custom fields is not supported on the consolidated site, as each entity may have different custom fields. Use the reports in respective entities for drilling down with custom fields.