Chargebee's Orders feature automates the process of creating schedules and capturing the shipments for physical goods in a subscription. RevRec provides the support to create sales contracts for such subscriptions with orders and recognize revenue based on shipments.

Shipment Entity 

Shipment entities refer to the number of shipments fulfilled for a sales order. Shipment entities are created when an invoice is generated in Chargebee. The number of shipment entities to be created is determined by the shipping frequency of the plan. Invoices with unbilled charges or marked as future do not generate shipment entities.

For example, if an invoice for an annual plan is created with a monthly shipping frequency, then 12 shipment entities will be created. Alternatively, if the same plan has an annual shipping frequency, then only one shipment entity would be created.

Shipment Entity Status 

Chargebee's shipment status indicates the stage of an order's shipment process. RevRec currently only supports the 'Shipped' status. It's important to note that each entity can have its own status. The following statuses are currently not tracked by RevRec and may be included in the future releases:

Order status Description
Queued This is the initial status of orders waiting to be processed. This is typically their state before they have been moved to an integration platform/external fulfillment system.
Awaiting shipment Used to indicate that the orders have been moved to the integration platform/external fulfillment system.
On-hold Indicates that the order processing has been put on hold.
Partially delivered The order is only partially delivered.
Delivered The order has been delivered.
Canceled Indicates that the order has been canceled.

Payment Status 

RevRec recognizes revenue as long as the shipment entity's status is marked as "Shipped," regardless of whether or not the associated invoice has been paid.

Using Orders Feature in RevRec 

Follow these steps to leverage this feature in your RevRec site:

  1. Configure Orders feature in your RevRec - Chargebee integration.
  2. Set accounting rules for the products.
  3. Create Contracts - utilize delivered quantities for each Chargebee shipment entity to recognize revenue.

Configuring Orders Feature 

A new advanced configuration, "consume_order_stream", has been added to RevRec-Chargebee Integration and should be set to True to enable this feature.

Setting up Accounting Rules 

Set Revenue recognition method for products with orders as Proportional Performance inside RevRec.

Learn more about revenue recognition methods here.

Contract Creation 

Invoice as Contract

RevRec creates a sales order from a single invoice which is associated with multiple shipment entities and sets up a deferred revenue balance with the same amount.

Contract Term

A sales order is created for the full term of the subscription, which is the product of the type of billing cycle (e.g. monthly, quarterly, or annually) and the number of billing cycles. Each billing cycle within the subscription is represented as a separate line item in the sales order, with corresponding start and end dates. Shipment entities are created only for the first billing cycle during subscription creation in Chargebee as only the first invoices are generated. The shipment entities for subsequent invoices are generated when relevant invoices are created.
For example, a subscription with an annual plan having two annual billing cycles and a monthly shipping frequency would result in a sales order with two separate line items, with the first invoice creating twelve shipment entities. After the first year, a second invoice will be generated, creating twelve new shipment entities.

Revenue recognition

Revenue is not recognized until the status of each shipment entity is updated to "Shipped". When this occurs, RevRec records the following details in the "Professional Service Delivery" input mapping:

  • Log date with the Shipped at date for each shipment entity.
  • Unit delivered is calculated by dividing the fulfillment quantity (total units sold) of the Order line item by the number of shipment entities created from the corresponding invoice. For example, 24 units were sold with an annual plan having 12 separate shipment entities, the unit delivered for each shipment entity will be 24/12 = 2.
    RevRec consumes these Service Delivery logs and recognizes the revenue accordingly. Click here for an example.

Expedited Shipment

The Service Delivery logs in RevRec integration will be updated to reflect the number of expedited shipped units. RevRec then recognizes the additional revenue associated with the expedited shipment.


  • RevRec logic can only consume order status from Chargebee if it is marked as Shipped.
  • If the shipment entity is refunded or canceled in Chargebee, revenue already recognized in RevRec cannot be automatically reversed. This is due to the limitation to create delivery logs for canceled or refunded shipment entities.


A subscription is created in Chargebee and an invoice is generated on Day 1. The plan billing frequency is annual, and the monthly price per unit is $100. The shipping frequency is set as monthly, and 24 units are sold, with a total contract value of $2,400 per year.

Chargebee will generate 12 shipment entities, with 2 units for each shipment entity.

Shipment Entity Status Amount
Order 1 Queued $200
Order 2 Queued $200
Order 3 Queued $200
Order 4 Queued $200
Order 5 Queued $200
Order 6 Queued $200
Order 7 Queued $200
Order 8 Queued $200
Order 9 Queued $200
Order 10 Queued $200
Order 11 Queued $200
Order 12 Queued $200

RevRec Integration 

Order Detail

Order Number Invoice Number Product Code Contract Date Service Start Date Service End Date Quantity Sales Price Extended Sales Price
111 1 SaaS-Annual 1/1/2022 1/1/2022 12/31/2023 24 $100 $2,400

Billing Schedule

Order Number Contract Date Product Code Customer ID Billing Date Invoice Number Amount
111 1/1/2022 SaaS-Annual ACME 1/1/2022 1 $2,400

No revenue will be recognized at this point. After 15 Days Shipment Entity Order 1 is marked as Shipped.

Professional Service Delivery

Order Number Units Delivered Product Code Log Date
111 2 SaaS-Annual 15/1/2022

RevRec will recognize the revenue of $200 ($100 x 2) at the end of January since the unit delivered for the shipment entity is 2. Similarly, for other shipment entities, as soon as their shipment status is marked as "Shipped," RevRec will add the delivery log to the professional service delivery and recognize the revenue accordingly.

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