RevRec Essential 

What is RevRec Essential? 

If you are a Chargebee user and you are looking for a GAAP and IFRS-compliant revenue recognition solution that is easy to use, and equipped with solid controls and reporting capabilities, the Chargebee RevRec Essential is for you. It comes auto-populated with data from your Chargebee site and pre-configured with rule-based revenue allocation, reporting capabilities, and auto-accounting close.

Why should I choose RevRec Essential? 

There is minimal implementation or configuration effort required with the RevRec Essential. It automatically integrates with your Chargebee site and processes your product catalog, invoices, and sales order data. It supports default accounting treatments for revenue recognition based on industry best practices. It provides versatile control and audit support, and it is a complete solution for small and medium businesses that don't have complex sales contracts yet.

What features are available in my RevRec Essential Package? 

The following section covers in brief, all the capabilities and configurations offered to you on your RevRec Essential site:

  • RevRec Essential comes auto-populated with data from your Chargebee site. It comes with an easy-to-use and intuitive dashboard with revenue-related charts. You can view and search for customers, sales orders, and product records on the user interface. The data is automatically synced from Chargebee to RevRec once every 24 hours.
  • A sales order record gets created for every Chargebee invoice. It processes invoices with multiple products that include both recurring plans and one-time charges. RevRec Essential supports multiple product sales orders, as long as the product does not require proportional performance recognition.
  • It handles discounts and credit notes for revenue recognition. Multi-currency transactions are also supported.
  • RevRec automatically creates a revenue arrangement in accordance with ASC 606, based on the default Daily Ratable or Point-in-Time revenue recognition methods. Subscription renewal, modification, proration, and point in revenue are all handled seamlessly.

Contact RevRec Support for more details on what is included in RevRec Essential.

How do I set up and implement RevRec Essential for my business? 

No effort is required from you.

What kinds of reports are available in RevRec Essential? 

RevRec Essential comes with the following default reports:

Category Report Description
Revenue Unearned Revenue Rollforward Tracks the deferred revenue balance (or unbilled receivable) by accounting period, as well as the activities, including sales, billings, recognized revenue, and foreign currency adjustments that impact the balances.
Unearned Revenue Waterfall Forecasts the future deferred revenue balances based on the current orders and revenue recognition schedules.
Sales & Invoice Sales Order Shows the active sales orders (contract value) and SSP allocation by accounting period.
Invoices Tracks the invoices that RevRec has received, including future dated invoices.
Control and Validation Invoice Control Tracks the invoices that RevRec has received, up to the current period.
Journal Entry Control Ensure that the accounting journal entries match the total revenue recognized for the current period (no issues in GL account mapping).
Job Errors Reports the data exceptions identified during bulk upload or in automated data sync with Chargebee.
Accounting Journal Entry Tracks the accounting journal entries for revenue based on the account mappings.
Forex Forex Exchange Rates If your site holds multi-currency transactions, this report helps track the daily close foreign exchange rates used by RevRec for foreign currency transactions.

Does RevRec Essential support accounting close and journal entry booking? 

Yes, RevRec Essential supports both accounting close and journal entry booking. The first day after the accounting period ends, you will receive an email with preliminary results. The accounting period is automatically closed ten days after the period ends. The RevRec Essential uses the default Journal accounts in RevRec for GL mapping. You can manually download the journal entries and upload them into your general ledger accounting system.

Note

You must close the first accounting period on your RevRec site, and RevRec will then auto-close going forward.

How is the RevRec Essential different from the Revenue Recognition Reports in Chargebee? 

The Chargebee Revenue Recognition Reports track Accounting Summary, Revenue Recognition, and Deferred Revenue.

In addition to providing all the above, RevRec Essential is a system of records and sub-ledger for revenue that facilitates the end-to-end revenue recognition process with an automatic accounting period close with default accounting journal entries. It offers versatile ASC606 and IFRS15 features with improved discounts and credit notes revenue recognition. It comes with built-in control and audit support and additional insights with reports on GL accounts, Journal entries, controls, reconciliation, and roll forward.

As your business scales, you can further upgrade your RevRec Essential to more advanced plans with better capabilities.

Can I import additional data outside Chargebee or customize the settings in my RevRec Essential account? 

To import any third-party data or customize the settings, you must upgrade your account to more advanced plans to import or add data to your RevRec Essential account.

When should I Upgrade to Advanced Plans? 

Chargebee RevRec is offered in three plans ? Essential, Performance, and Enterprise ? each of which is tailor-made and packaged to automate revenue recognition for businesses of varied sizes and growth stages. As your business scales, you can consider upgrading to the advanced plans of RevRec that come with the following capabilities:

  • Connect RevRec to other billing or CRM systems for automated data sync through third-party integrations, or manually upload bulk data on demand.
  • Advanced Standalone Selling Price (SSP) & Revenue Recognition Rules configuration that supports Proportional Performance or Consumption-based Recognition.
  • GL mapping customization for User-defined GL Accounts and mapping with custom fields.
  • Journal Posting to third-party Accounting System.
  • Recognize expenses related to sales such as commission and resell partnership costs.
  • Advanced reporting functionalities and use of custom fields for reporting.
  • Dedicated Implementation and Customer Success team support.

Contact RevRec Support for more details on RevRec advanced plans.

How can I upgrade from RevRec Essential? 

You can upgrade to the advanced plans in the following two ways:

  • RevRec User Interface: On the application user interface, RevRec allows you to enable certain advanced settings that are not available by default on RevRec Essential. When you choose to enable the settings, you will be prompted with a notification on the potential impact of the change in settings. You can simply follow the instructions to enable it, and your account gets upgraded. A RevRec team member will reach out to you shortly to discuss the upgrade including any specific requirements and questions that you might have.
  • Contact Support: At any point in time, you can write to RevRec Support to upgrade your RevRec Essential account.
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