Policy-related configuration

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Policy-related configuration

ASC 606 breaks down the revenue recognition process into five basic steps:

  1. Group transaction lines into revenue contracts.
  2. Identify the performance obligations in the revenue contract.
  3. Determine the transaction price.
  4. Allocate the transaction price.
  5. Recognize the revenue as performance obligations are satisfied.

For RevPro to automatically performs these steps to recognize the revenue, you must analyze your company's accounting policies and then configure RevPro properly to suit your business needs.

Basic policy-related configuration

The following policy related configuration is the minimum requirement for RevPro to perform the ASC 606 steps properly:

  • RC grouping templates
    The RC grouping templates determine how RevPro should group the incoming transaction lines into revenue contracts as required by ASC 606 Step 1.

    For information, see Create RC grouping template.

  • POB templates and POB assignment rules
    The POB templates and assignment rules determine how RevPro identifies performance obligations within each revenue contract as required by ASC 606 Step 2 and also define the revenue treatment for each performance obligation.

    For information, see Performance obligation processing.

  • SSP
    The SSP setup determines how the transaction price is determined and allocated for each line in the revenue contract as required by ASC 606 Step 3 and 4.

    For information, see SSP setup.

After these basic configurations, RevPro can perform revenue management based on the revenue events that are uploaded.

Advanced policy-related configuration

RevPro also provides configurable rules and settings for you to tailor RevPro to your own revenue management policies, such as:

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