Setting up revenue recognition

Revenue recognition is an accounting procedure that officially accounts for revenue earned.

Setting up users

To use the Revenue Workbench, you’ll need to enable permissions for these roles:

RolePermissions to assign
AdministratorRevenue Contract Clauses and Revenue Contracts permissions
Revenue ManagerRevenue Data (gives access to the Revenue > All Revenue tab > and Revenue Runs (gives access to the Revenue > Revenue Runs tab and the ability to generate runs from the All Revenue tab)
Project ManagerRevenue Contracts (gives access to view, edit, and assign contracts) and Revenue Data (gives access to view revenue reports)

Then, ensure the applicable permission sets are assigned to users who will be involved in managing revenue.

Setting up revenue clauses and contracts

Before revenue managers can recognize revenue for a project, that project must be assigned a revenue contract.Each contract is comprised of one or more clauses. These clauses define rules that determine when revenue earned for a project becomes recognizable.

Replicon comes with two revenue clauses, and their associated contracts, available out of the box. Each of these rules has some configurable elements, that you can modify to suit your requirements.If you use a completely different method for recognizing revenue, contact Replicon, and we can create a custom revenue clause for you.

Refer to Understanding revenue recognition contracts and clauses for information on the default revenue clauses – such as details about how revenue becomes recognizable in each case, and about the configurable options available.

Setting up system-level revenue clauses

To set the default settings for an existing clause:

  1. Go to Administration > Projects > Revenue Contract Clauses.
  2. Select the clause you wish to edit.
  3. From the Parameters section, update options as desired.
  4. Click Save.
If you want to add a new, custom clause, contact Replicon.

Setting up system-level revenue contracts

To configure a revenue contract using existing clauses:

  1. Go to Administration > Projects > Revenue Contracts.
  2. Select the contract you wish to edit, or click Add Revenue Contract.
  3. Give the contract a name, or rename an existing contract, if you like.
  4. Click Add Contract Clause to add a new clause.
If you include multiple clauses, they’ll work in combination.
  1. Update the clause parameters, if needed.
Modifying a parameter doesn’t change which options are available in the contract – all options will be available to project managers assigning the contract. You may still want to configure parameters, however, since the parameter you select in the contract will be the default value used.
  1. Ensure the contract is enabled, if it will be used immediately.

  1. Click Save.

If enabled, the rule is available for project managers to assign to new projects they create.

FAQs

Can we create multiple variations of the same clause?

No, there can only be one version of each method, since all variable parameters are always available for selection at the project-level. Modifying parameters only changes which value is used by default.