Contract modification in Recurly RevRec covers approved alterations to the price, term, or both of a contract — changes mutually agreed upon by the supplier and customer. The system automatically selects the appropriate modification sub-type based on the nature of the change, so revenue recognition stays accurate and compliant. This feature is part of Recurly RevRec. Learn more.

Available as part of Recurly RevRec

1Definition 2Key benefits 3Key details 4FAQ

Prerequisites

A valid Recurly account with appropriate permissions.
Basic understanding of Recurly's revenue recognition processes.
Familiarity with contract terms and conditions.

Limitations

Modifications must be approved by both parties.
Not all types of modifications may be supported under certain conditions.
Manual modifications using the Revenue Workbench may be treated differently.

Definition

Contract modification in Recurly Revenue Recognition pertains to approved alterations in the price, term, or both of a contract. These changes are mutually agreed upon by both the supplier and customer, either in writing or through established practices.

Key benefits

Flexibility Adjust contract terms easily to accommodate changing business needs.

Automation The system automatically selects sub-types based on the nature of the modification.

Clarity Clear categorization of modifications ensures accurate revenue recognition.

Efficiency Streamlined processes reduce manual intervention and errors.

Transparency All modifications are traceable and viewable within the Revenue Workbench.

Key details

Types of modification supported

Recurly Revenue Recognition supports six primary types of contract modifications. Each primary type encompasses various sub-types. Depending on the nature of the change during the set Contract Revision Level, specific actions are triggered:

New Line/POB

The system selects an appropriate sub-type based on the modification.

Price Change

A sub-type is chosen based on the nature of the price alteration.

Quantity Change

The system determines a sub-type according to the modification.

Term Change

A sub-type is selected based on the term adjustment.

Cancellations / Returns

Activated when a contract amendment results from a cancellation or return.

All Others

Any alterations made to the contract using manual functions in the Revenue Workbench are treated as a Contract Modification.

Key terminology

POB-related terminology: POBs are categorized as distinct or non-distinct based on term, quantity, or both.
SSP-related terminology: Terms such as "Within SSP Range" and "Outside SSP Range" describe the sell price of a new line relative to the SSP range.
Treatment-related terminology: Contract modifications can be treated as "Cumulative Catchup," "Prospective Catchup," or "No Allocation."

Setting the Contract Revision Level

The Contract Revision Level defines how long after a change the system recognizes it as a modification.

Navigate to Contract Revision Level

Go to Setup → Profiles → Contract Revision Level.

Select the revision level

In the value column, choose one of the following from the dropdown.

All: All changes to the contract are treated as modifications.
Period: Changes in the next and subsequent periods are recognized as modifications.
Quarter: Adjustments in the next and subsequent quarters are considered modifications.

Changing treatment in modification rules

Navigate to Contract Modification

Go to Setup → Contract Modification.

Select the rule

Choose the desired contract modification rule from the dropdown list.

Viewing modifications in the Workbench

Open the contract

Access the Revenue Workbench and select the modified contract.

Review the Modifications tab

Under the Modifications tab of the contract, all changes and revision levels are displayed.

FAQ

What is a Contract Modification in Recurly RevRec?

It's an approved change in the price, term, or both of a contract within Recurly's revenue recognition platform. Both the supplier and customer must agree on the modification.

How many types of modifications does Recurly RevRec support?

Recurly RevRec supports six primary types of modifications, each with its own sub-types: New Line/POB, Price Change, Quantity Change, Term Change, Cancellations/Returns, and All Others.

Can I manually modify a contract in Recurly RevRec?

Yes. You can make manual modifications using the Revenue Workbench. These changes are treated as the "All Others" type of Contract Modification.

How can I view the changes made to a contract?

Navigate to the Revenue Workbench and select the modified contract. Under the Modifications tab, you'll see all changes and revision levels.

What's the difference between Cumulative Catchup and Prospective Catchup treatments?

Cumulative Catchup uses a retrospective approach, recalculating amounts from the beginning of the contract. Prospective Catchup only considers changes from the moment they were made, excluding amounts posted in closed periods.

How do I set the Contract Revision Level?

Go to Setup → Profiles → Contract Revision Level. From there, select the desired revision level from the dropdown — All, Period, or Quarter.

What happens if a new line's sell price falls outside the SSP range?

It's described as "Outside SSP Range" — terminology used to indicate that the sell price of a new line falls outside the configured SSP range.

Are all modifications treated the same way in Recurly RevRec?

No. Modifications can be treated as Cumulative Catchup, Prospective Catchup, or No Allocation, depending on the nature of the change and the settings you choose.

What are Contract Modification Rules and how do they automate one-off scenarios?

Contract Modification Rules define how RevRec automates one-off contract changes such as upsells, downsells, or extensions. Configuration steps are detailed in the Application setup → Contract modification section. See the Contract Modification documentation for complete setup guidance.