This feature or setting is available to all customers on any Recurly subscription plan with an additional cost.
This feature or setting requires an additional cost. Please reach out to your Recurly account manager or [email protected] for more pricing details.
Recurly's revenue recognition standard is a comprehensive, integrated solution within Recurly's subscription management application designed to streamline and automate the process of revenue recognition in accordance with major reporting standards, including ASC 606 and IFRS 15. This powerful tool simplifies how businesses track, manage, and report revenue accurately by enabling users to effortlessly establish recognition rules and automate accounting processes through a single, user-friendly interface. With Recurly's revenue recognition standard, organizations can benefit from detailed insights into contracted revenue via extensive built-in reports, such as the Revenue Waterfall Report, Liability Balances Report, and Transfer Accounting Report. The end result is a significant reduction in audit and revenue reporting errors, elevated compliance standards, and enhanced revenue insights and accuracy, empowering businesses to focus more on strategic activities rather than complex revenue calculations and compliance tasks.
Streamlined Accounting Process:
Recurly's revenue recognition standard automates the complex process of revenue recognition, aligning effortlessly with major accounting standards like ASC 606 and IFRS 15. This automation allows for more efficient and accurate accounting operations, freeing up valuable time for your finance team to focus on strategic initiatives.
Enhanced Compliance and Reduced Errors:
By providing a tool specifically designed to conform to recognized accounting standards, Recurly ensures that your business is consistently in compliance with relevant regulations. This significantly reduces the risk of audit issues and costly revenue reporting errors, thereby safeguarding your company’s financial integrity.
Insightful and Comprehensive Reporting:
Recurly’s revenue recognition standard includes built-in, detailed reports, such as the Revenue Waterfall Report, Liability Balances Report, and Transfer Accounting Report. These reports offer valuable insights into contracted revenue, enabling better decision-making through clear and accurate data. It empowers businesses to have a granular understanding of their revenue streams and financial standing.
Recurly revenue recognition standard offers a streamlined experience for managing your revenue recognition process. By configuring rules, you can automate the application of revenue treatment for specific performance obligations and define the appropriate liability and revenue account codes that seamlessly map to your general ledger. The system provides flexibility for recognizing revenue over time (daily or partial monthly), at a point in time, or through manual recognition. You can define revenue recognition rules and accounting codes for subscription plans, items, shipping fees, gift cards, and more.
Transactions and billing events automatically flow from Recurly's subscription management module into the revenue recognition module, ensuring immediate capture and real-time reporting. With a unified data model and a single source of truth, Recurly offers ready-to-use, actionable reports, including:
- Revenue waterfall report: Track the waterfall of revenue across multiple accounting periods. Gain detailed views into recognition schedules by month, quarter, year, or multi-year periods.
- Liability balances report: Empower users with insights into liability balance details by account, contract, and even by item.
- Transfer accounting report: Obtain a detailed view of journal entry data by period, including contract, item, and account details. Easily manage how revenue data is exported into the general ledger.
Initialize Accounting Codes: Prior to establishing your plans, add-ons, and items, the initial step is configuring your accounting codes. This is fundamental to ensure that your accounting setup is robust and your reporting is precise. Consider setting up default accounting codes for each business entity to maintain organization and clarity.
Craft Revenue Recognition Rules: For each of your plans, items, shipping options, gift cards, and other pertinent categories, establish revenue recognition rules and assign appropriate accounting codes. This pivotal step guarantees that revenue from various types of transactions is recognized in accordance with relevant accounting standards.
Engage in Revenue Recognition: With the essential configurations in place, you are set to utilize the Recurly platform for recognizing revenue. As transactions are processed and entered into the system, Recurly automatically captures the required data to compute revenue recognition with precision.
Utilize Essential Reports: In the background, Recurly's revenue recognition engine is the force driving your key reports, including the Waterfall, Liability Accounting, and Transfer Accounting Reports. These can be exported to your accounting systems, facilitating seamless and accurate revenue recognition. Regular examination of these reports not only provides valuable insights into your revenue recognition procedures but also empowers you to detect potential issues and pinpoint areas ripe for enhancement.
Note: For a deep understanding of the setup process for Recurly revenue recognition standard, please visit our dedicated page.
- Take the time to carefully and accurately configure the settings to ensure precise revenue recognition.
- Regularly review the key reports to monitor your revenue streams, identify potential issues, and discover areas for improvement.
- Consider seeking guidance from an accountant or financial professional to ensure compliance with accounting standards and best practices.
- To maximize the benefits of Recurly revenue recognition standard, we recommend regularly reviewing the key reports, monitoring revenue streams, and using the insights gained to make informed business decisions and optimize your revenue recognition process.
Q: Is it a prerequisite to be on the Professional plan for Standard and on the Elite plan for Advanced?
A: There are no prerequisites for the Standard edition, allowing you to access it without any specific plan requirement. However, for the Advanced edition, it is necessary to be on an annual plan to be eligible. If you need assistance in selecting the best option for your needs, please reach out to your Recurly account manager or [email protected] for more details.
Q: Can I purchase the Standard edition as a standalone product?
A: No, the Standard edition of Recurly Revenue Recognition is not available as a standalone product. It is a feature embedded right within the Recurly platform. To access the Standard edition, you will need a Recurly subscription. However, Recurly Revenue Recognition Advanced is available for purchase as a standalone product.
Q: Which is better for me - the standard or advanced solution of Recurly revenue recognition?
A: To determine which version of Recurly revenue recognition—standard or advanced—is the best fit for your business needs, please reach out to our support team at [email protected]. They can initiate discussions with the appropriate personnel to assist you in making an informed decision.
Updated 20 days ago