Revenue plans are key to your sales order records that help understand how RevRec calculates revenue. You can drill down and view the cumulative revenue arrangement for the sales orders over time and the revenue allocation across all products within the sales order, as you see fit.
Once a sales order record is added to your RevRec site, a revenue plan is automatically created using the configured accounting rules. The sales orders that have revenue plans are marked as ACTIVE.
To view the Revenue arrangement for a sales order, click open the Sales Order record and click Arrangements to view the revenue arrangement.
On the Arrangements page, you can view the revenue allocation by expanding the Revenue Elements section.
Revenue is allocated to the products in the sales order based on the Sale Price, and the Standalone Selling Price configured for the respective products. Click the ellipsis icon next to each product to view the revenue calculations in detail.
The popup displays a clear breakup of the associated product details and contract period, along with the SSP configuration, Standalone Price, and Revenue Recognition Rule.
The Relative Selling Price percentage is calculated from the Standalone Price of the Product line item and the Total Standalone Price. It is then applied to the Total Contract Price to arrive at the revenue allocation for the respective line item.
Click the Revenue Plan section to view the revenue schedule for the sales orders accumulative or for each product. You can either view it graphically over time, or you can flip the "Graph" toggle to see it as numbers. Use the Product(s) drop-down to view the plan for specific products.
You can also switch to the Product by Product tab to view the revenue schedule for each product.
The Arrangements Comparison feature within RevRec is a robust tool for gaining insights into the sale order change and the associated revenue arrangement history. You can extract valuable insights into revenue and expenses by comparing order versions over specified periods and utilizing diverse viewing options.
You have the flexibility to contrast any two periods that have order updates. In comparing order versions, the scope is confined to the most recent version within each accounting period. This constraint ensures the accuracy and relevance of the comparison to your existing arrangements.
You can access order details in various formats,
Choose ORDER DETAILS AS JSON to display order details in JSON format. A thorough side-by-side analysis of modifications in any field within a Sales Order is highlighted with a darker color, to help you identify the difference.
Choose REVENUE ELEMENTS for a product-by-product comparative analysis of the revenue elements to provide insights on how transaction prices are allocated across different products in the sales order based on the relevant Stand-alone Sale Price rules.
Choose REVENUE PLANS for a detailed month-over-month comparison chart showcasing total monthly revenue for selected versions.
