Quick Start Guide for RevRec integration
What are the steps to configure RevRec integration?
How to create Sales Order in RevRec?
How to create Products in RevRec?
Once you create an account with RevRec and verify your account you are ready to get started.
Step 0: Get familiar with RevRec by watching our how to Create a new Sales Order video
Step 1: Populate your list of products and services
Step 2: Enter the Sales Orders
Step 3: Populate Stand-Alone Selling Price Rules
Step 4: Update Delivery Log
Step 5: Enter Invoicing Information
Note: When you log in to RevRec you get a test and a production environment. We recommend you to set up a sample data set in the test environment first and once you get a comfortable move to production.
There are a few items that you will need during the set-up process:
The Price Book – The price book includes all of the products and services that you offer and the “list price” for each item.
Stand-Alone Selling Price Rules – To comply with ASC 606 revenue recognition standards, companies need to define their Stand-Alone Selling Price Rules.
These rules include two items
Stand-Alone Selling Price –The price at that a product would be sold on a stand-alone basis. This Stand-Alone Selling Price is determined by the company’s management and should be reviewed by your outside auditors (if applicable)
Revenue Recognition Policy – Under ASC 606, revenue is earned as performance obligations are satisfied. The identification of performance obligations and the revenue recognition policy is determined by management and should be reviewed by your outside auditors (if applicable).
The Stand-Alone Selling Price Rules are configured in RevRec's Stand-Alone Selling Price Library™. This information is applied to each line item of each contract to properly recognize revenue in accordance with ASC 606.
> Sales Orders – The sales order includes all of the information related to the contract with the customer. This may include multiple products and/or services.
> Billing Schedule – Agreed upon invoicing terms, critical to calculating Deferred Revenues (Liability).
Step 1: Setup Products and Services
Click on 'Products > New Product'
Once you are on the new product page, fill in the 'Product Name, Product Family, Product type, Product Code, ID (Optional), Price, Currency), and Recurring. This information will come from your Pricebook.
If it's a non-digital product, you can add the Delivery Start date, Start Offset, Units, Delivery start from date terms, and end date.
Notice the 'New Product' page asks for the term for the product. RevRec will use this term to determine the active period for a sales item on any order with this product unless the term or service end date is explicitly specified in a particular order.
It is recommended that you enter all of your current products upfront, which makes it easier to just select the product code when providing order information.
Existing products are listed on the product page as shown below;
Products are searchable by name or product code. Product details can be viewed, products can be edited, and new products can be added. Each time you enter a 'Sales Order' an existing product will be populated.
If you forget to add one to the Product Page, no worries. RevRec will prompt you if a sales order contains a product not on this list and you can enter it on the Sales Order Screen.
Step 2: Entering Sales Orders
The Product Name will provide a 'drop-down' menu of items in your products list. Once selected, it will populate the list price associated with the product. If the Product Name is not in the drop-down menu, RevRec will ask if you want to create a product and allow you to enter the product details. Enter quantity, the unit sales price, the delivery date, and the term of the contract.
If there are multiple line items in the Sales Order, select 'Add New Sales Order Item'. Once saved, Sales Order Items are automatically matched to the appropriate Stand-Alone Selling Price Rules.
Step 3: Enter Stand-Alone Selling Price Information
(1) If the Stand-Alone Selling Price Rules are not set up, RevRec will prompt you with an error message.
(2) Expand the Error Message by clicking on the right side of the item
(3) Select “SSP Not Found Click to Create New?”
(4) Enter “New SSP Rule”
Standalone Price Policy – Drop-down choices including dollar amount, discount percentage range, discount dollar, residual, etc.
Revenue Recognition Rule – Drop-down choices including pro-rata, as performed, and proportional performance.
Commissions Recognition Rule – Drop-down choices include as incurred or pro-rata.
Once saved, RevRec remembers these rules and applies them to future sales orders of the product and/or services. There is no need to re-enter once a rule is saved. Rules can be edited under Settings/Stand-Alone Selling Price Library
Continue adding your sales orders and where prompted configure your Stand-Alone Selling Price Rules. You will not be prompted for Stand-Alone Selling Price Rules previously configured.
Step 4: Record Delivery
Revenue is recognized as performance obligations are satisfied. Revenue from pro-rata arrangements is automatically tracked and recognized in RevRec. On the other hand, revenue
On the other hand, to properly track and recognize revenue resulting from Point-In-Time and Proportional Performance delivery information must be entered into RevRec.
(1) From the Sale Order Screen select Service Delivery
(2) Items requiring delivery information will appear in a drop-down menu
(3) Select Edit then select Add Delivery Log
(4) Enter delivery information
Delivery information can be entered as quantity (e.g. hours) or percentage complete. For example, if 50 hours were delivered this could be entered as 50 hours or as 50% complete.
Step 5: Enter Invoicing Information
(1) We recommend entering invoices by customer. Selecting Customers from the Navigation Bar takes you to the Customer Listing Page
(2) Select a customer; you will be taken to the Customer Detail Page. We have selected Wayne Enterprises.
(3) Select the Invoices Tab and select Add New Invoice
Invoicing information can be entered as the invoices are generated or if you are on a regular invoicing schedule, you can enter them according to the schedule. It is important to make sure the invoice date is correct since this directly impacts your deferred revenue roll forward.
How to add Custom fields to a RevRec report?
The accounting period in RevRec