Getting Started

Building Blocks

Subscription Features

Custom Fields

Localization

Invoices

Credits

Order Management

Billing Features

Taxes

Payment Methods

Direct Debit Payments

Configuring Gateways

Revenue Recovery

Checkout

Self-Serve Portal

Notifications

Reports and Analytics

Data Privacy & Security

Fraud Management

Migration

Other Features

Developers

Third Party Integrations

Softrax 

To automate financial compliance with ASC 606/IFRS 15 regulations, Chargebee integrates with Softrax, an enterprise Revenue Management system. You can sync subscription information to Softrax and generate revenue forecast schedule required for recognizing revenue on a monthly basis, in your Accounting system.

  • To enable this integration on your Chargebee site, you can get in touch with Support
  • It is recommended that you test the integration on the sandbox environment before connecting to the Live site.
  • It is recommended to be ideally suitable for SaaS vertical

ASC 606/IFRS 15 - Compliance 

Revenue recognition principle describes when revenue should be recognized/realized and earned, not necessarily when received. Revenue is a core element of the financial function. However, there have been multiple ways in which companies have recognized revenue. The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) identified this misalignment and collaborated to create a global standard that aligns how companies recognize revenue from contracts with customers.

  • The FASB created the Accounting Standards Codification (ASC), as Topic 606: Revenue from Contracts with Customers (ASC 606) which impacts US-based companies
  • The IASB created the International Financial Reporting Standard (IFRS) 15, which is essentially the same set of rules as ASC 606, to unify these standards across the globe

For further reference and formal updates, refer FASB.org and IFRS.org.

Note

The ASC 606 accounting standards will take effect for all US-based private entities with reporting periods after December 15, 2018. Public entities and international businesses under IFRS jurisdictions are subject to these changes by 2019, almost every business across the globe will be impacted.

The new guidance on revenue recognition affects organizations that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards.
Here's the 5 step process as defined in ASC 606 -

1) Identify the contract: Identify the criteria that must be met when establishing a contract with the customer
2) Identify the performance obligations: Identify the items to be recognized in the contract
3) Determine the transaction price: Elaborate on what must be considered when establishing the transaction price, the amount the business would expect to receive, for transferring the goods or services to the customer, if sold separately
4) Allocate the transaction price: Determine how the transaction price is allocated across the contract's separate performance obligations (proportionately across the performance obligations in the contract)
5) Recognize revenue: Revenue to be recognized as the business meets each performance obligation, can be referred to in the Revenue forecast schedule for the entire term

Sync Overview 

Here's an overview of how data in Chargebee maps in Softrax:

  • This is a 1-way integration
  • Chargebee will sync subscriptions and related invoices, products, coupons etc to Softrax
  • You can define the rules in Softrax to calculate the revenue to be recognized
  • Sync will run once every 24 hrs

Customers

  • Customers will be created in Softrax and

Plans/Addons

  • Plans/Addons in Chargebee created as Products in Softrax
  • The Plan/Addon ID in Chargebee will be set as the Product Code in Softrax

Subscriptions

  • Subscriptions will be synced as Contracts in Softrax
  • You can choose to sync upto 3 years of historical data if you are planning to report based on Full Retrospective
  • You can also choose to sync past 1 year historical data if you are planning to report based on Modified Retrospective

Invoices/ Credit Notes

  • Invoices/ Credit Notes will be created as Orders in Softrax

FAQ 

1. Which plan is Softrax integration available in?

The Chargebee - Softrax integration is available on all paying plans.

2. Will Chargebee automate journal entries in my Accounting/ERP system?

No, Chargebee will only sync subscription data to Softrax. You should manage revenue recognition in your Accounting system.

For more information, please get in touch - we would like to understand your use cases.

Was this article helpful?
Loading…