Scope
How to configure RevRec integration in Chargebee?
How to integrate RevRec in Chargebee?
What are the steps to integrate RevRec with Chargebee?
How RevRec classify Chargebee subscription data?
Summary
The RevRec Revenue Recognition module works natively with Chargebee with the revenue recognition standards. Chargebee + RevRec offers a best-in-class solution that simplifies the complexity of ASC 606 and IFRS 15 compliance. After logging in to your RevRec site, you can navigate to the environment panel on the top left corner of your site name then select Production for the live environment or Test for the sandbox environment to configure Chargebee by navigating to RevRec > Sync > Connect your data > Invoices > Chargebee.
Solution
Configuration of RevRec
We recommend you first get familiar with environments and go through our Quick Start guide first. The Quick Start article will walk you through a manual entry process of items needed for proper revenue recognition. By manually entering a few transactions, you will gain familiarity with the information needed, how it is used, and the functionality of the solution.
Setup involves the following steps:
Link RevRec to Chargebee
Setup your Standalone Selling Price (SSP) Library
Configure your Posting Process
Conversion of Prior Balances
1. Link RevRec to Chargebee
You can integrate RevRec with Chargebee by navigating to RevRec > Sync > Connect your data > Invoices > Chargebee.
Connection Parameters
Chargebee Site
Each Chargebee site has a corresponding site that you will configure into RevRec so it can pull data that is needed for processing. https://{site}.chargebee.com/.
API Key
Read-only API key, that RevRec will use to connect to the Chargebee site.
Product Catalog
Product catalog version that your environment is configured to use. Possible values are 1.0 or 2.0, refer to this link on how to check your site's Product Catalog version.
Payment Required
[True] if at least one paid invoice is required for Revenue Recognition to start. [False] otherwise.
Dereference Service Start Date
API key of the custom field that will be used as the service start date.
Dereference Service End Date
API key of the custom field that will be used as the service end date.
Invoice Period Equals Contract Term
[True] If each invoice's billing period equals the contract term. [False] otherwise.
Custom Fields
Custom fields are to be copied from Chargebee. The value of this property should be a valid JSON with the following format.
{
"cf_product_type":{
"name":"Product Type",
"api_name":"cf_product_type",
"type":"string"
},
"cf_event_date":{
"name":"Event Date",
"api_name":"cf_event_date",
"type":"date"
}
}RevRec supports downloading custom fields for the following objects.
Customer
Subscription
Product Catalog 1.0
Plan
Addon
Product Catalog 2.0
Plan Item
Addon Item
Charge Item
This configuration parameter should only be set at the time of onboarding. If you need to make any additions or updates please work with your contract at RevRec to update the configuration.
Force Drop PII
[True] Forces RevRec to drop all information that can be used to identify a customer which includes customer name, email & company. RevRec by design does not synchronize customers' phones or addresses when downloading data from Chargebee. When this property is set RevRec will replace the customer name using the customer ID from Chargebee as "Customer {ID}" where {ID} is the customer ID in Chargebee.
[False] Otherwise.
Setup your SSP Library
After the configuration is completed, the first step is to set up your SSP Library Standalone Selling Price. Whenever you bring data into RevRec for products that are not already in the library it will prompt you to populate the library with rules for that product.
How RevRec handles Chargebee data?
Subscription Classification
RevRec classifies all subscriptions in Chargebee as one of the following
Evergreen
Contract Based.
Evergreen Subscriptions
In evergreen mode, RevRec treats each invoice as an independent contract term that matches the terms of the invoice. This means you will see a new sales order in RevRec for each invoice.
Contract Based Subscriptions
This mode is used when the contract term does not match the terms specified on the invoice. For example, if the legal term on the contract is 12 months but it is billed quarterly this mode is adopted. In this case, a renewal for a customer is also marked by creating a new subscription for the customer.
RevRec chooses one mode or the other for each based on the plan for each subscription. If the plan includes a multi-period billing cycle (Billing Cycle > 1) then RevRec will choose contract mode. In all other cases, it will choose Evergreen.
Other Contract Events
Termination
When a subscription is canceled on Chargebee, RevRec will also automatically terminate the sales order and make necessary adjustments to the revenue plans based on the date of cancellation.
Early Renewal
If the contract for a customer is renewed before the expected completion of a prior subscription, you must first cancel the existing subscription on the date of early renewal and create a new subscription with the terms of the renewal contract. This will cause RevRec to terminate the prior sales order on the early renewal date and create a new order for the renewal. All adjustments to invoices done by Chargebee are automatically picked up.
Other Data
Invoices
RevRec automatically imports and syncs all invoices and their changes from Chargebee. Each invoice that is sent is automatically linked to a customer.
NOTE: Sales Order in RevRec is created when the first invoice is created for a new subscription. This means that if a subscription is in Trial Period or is scheduled to be activated on some future date, it would not show up in RevRec. As soon as the subscription is activated and the invoice is sent SalesOrder will be created.
Product Catalog
RevRec will sync the product catalog directly from Chargebee. Any new plan or add-ons added to Chargebee will be automatically synchronized to RevRec. All plans and add-ons (including recurring & non-recurring add-ons) are loaded into RevRec as products.
Customers
RevRec automatically syncs all customers from Chargebee and will keep them in sync.
Scheduled Sync
Out-of-the-box configuration for RevRec+Chargebee integration schedule the sync to happen at midnight every day. The schedule can be updated by navigating to the RevRec Connect Source dialog. To open the dialog go to the Sync module and click on CONNECT button from the top. Under the Chargebee tile press the schedule icon, here you can update the schedule to what you require it to be.
Then you can set Frequency, Time as per your preference.
Start an unscheduled Sync with Chargebee
You can manually trigger an unscheduled sync from Chargebee from Connect Source dialog. Go to Sync -> CONNECT (three cables icon) on the right-hand corner > Invoices > Chargebee > Run Job. Click on the [Run Job] icon button on the Chargebee tile.
RevRec to Chargebee Field Mapping
Below is a detailed mapping of how each field in Chargebee maps to the fields in RevRec
Note, that you can test creating Sales Order and Revenue Recongnition using Time Machine in Chargebee test site & RevRec test enviornment.
Related Articles
How to integrate RevRec with Salesforce integration?