What are Control Checks in RevRec?
How to check accounting journal entries are accurate in RevRec?
How will RevRec help in identifying missing data?
RevRec provides out-of-box control checks that help you meet the SOX-compliance requirements: for example, invalid or missing data, unusual or uncontemplated use case scenarios that warrant a second look, or software issues that may have impacted your data. Once a potential issue is identified, RevRec will alert you and provide detailed information, including the full description of the issue, an analysis of the potential impact, and oftentimes the proposed resolutions, so that you can review and resolve the issue.
The Control Checks box is located on the dashboard. You will see an alert flag when a potential issue is identified.
Click on the alert icon, and RevRec will open the Control Checks page. The top bar lists the areas that RevRec checks for potential impacts: bookings, invoices, revenue, and deferred revenue. In addition, RevRec highlights the specific impacted area by the issue. For example, this issue impacts the recognized revenue.
|Integration with Source Systems||To ensure that RevRec has captured the data correctly and completely when integrating with third-party systems, such as CRM for contract information or Xero for invoicing data.|
|Data Validation||To ensure that the data passes RevRec's quality checks. For example, a multi-currency transaction invoice should include the currency code for the invoiced amount.|
|Business Logic Check
||To ensure all validated invoice and sales order data is processed by RevRec properly. Some additional business logic checks are:
proper allocation of transaction price to performance obligations under the contract.
the revenue recognized over the contract term should be equal to the allocated transaction price.
when both contract and billings/invoices data are provided, the total billings should be equal to the total transaction price/contract value.
|Accounting Journal Entries||To ensure that accounting journal entries are created correctly and capture the recognized revenue.|