What is Conversion in RevRec?
How to run a conversion job in RevRec?
How conversion handles new contracts and historical contracts in RevRec?
Conversion refers to how you convert from your current ASC 606 accounting process into a new accounting close process that runs on RevRec. Conversion is a process that you run right after you have configured RevRec and must do you close your first Accounting Period. Navigate from Settings > Configure > Conversion Date.
There are a number of decisions/steps to answering how you will perform the conversion, illustrated in the diagram below:
The first step is figuring out what population you want to convert into RevRec. You must decide whether you want to
If the customer chooses to bring in new contracts only there are only two steps that need to be performed
Once you decide you want to bring in a historical population you have a further set of choices you have to make.
Note that the larger this population the more work you might have to do to reconcile prior ASC 606 results against what is produced by RevRec.
Once you have determined your conversion method and know you need to convert historical data you will follow the process above to create a conversion data set and run it.
The first step is to determine if you are running an automated sync. If you are connected and run a Sync job learn how. When you run sync jobs in setup mode RevRec will automatically generate a "Conversion Data" set for you in an Excel format that you can download.
This data set is filtered to an active population and instead will include the population in the source system of record. You have the ability to download and filter the dataset based on criteria you may deem relevant to determine your initial population.
If you do not have an automated sync connection or if the data set in your current set is incomplete you can use our bulk upload process to prepare a dataset in Excel. Read more about it in our Import Data in Bulk Help.
After you have your conversion dataset ready you can go ahead and bulk-load it on the Sync screen and run through it to populate RevRec.
Once you have run through RevRec with your historical conversion data you will need to reconcile your prior results against the numbers produced by RevRec. This will include looking at your deferred revenue and commission balances on your GL and comparing them to those produced by RevRec. Once you are comfortable with any difference you will post adjusting entries to your ledger to have it tie back to RevRec as of the conversion date.
Once you have done this your conversion is effectively complete. All you have to do at this point is to . Note that if you wish to not receive any updates to prior contracts from your source system at this point you can still set the and RevRec will ignore future updates on these contracts. We recommend you not set this unless you know that changes to this population need to be out of scope.
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