Revenue Recognition: - Basically, the principle means revenues are

recognized when they are realized or earned, irrespective of when the cash
comes in.Recognizing the revenue means recording the amount of
consideration as earned revenue in a companys financial statements. Its
the process by which companies identify when to and how much
(expected) revenue to be recorded as earned, or recognized, revenue.
Revenue is earned when a company has delivered the product(s) and/or
performed the services, and met all criteria of revenue recognition as
outlined by the GAAP guidance.
New GAAP Guidelines

A customer may pre-pay or post-pay a company for a product and/or service

or pay at the point of sale. However, the company recognizes the payment
(pre-payment, post-payment or point of sale payment) at the point in time
when the company satisfies the terms of the sales contract and the value of
the deal is delivered or transferred to the customer.
As an example, lets say your company builds widgets. This company

receives $100 of consideration (or pre-payment) from a customer for a yetto-be-built widget. This $100 pre-payment goes into your companys bank
account. Your company hasnt delivered the widget to the customer yet, so
the firm hasnt earned the consideration, or revenue, from the sale of the
widget. Using accrual accounting (in which timing for the recognition of
income doesnt coincide with timing of receipt and payment of cash), the
company must account for that $100 pre-payment as deferred revenue.
Now, in building this widget and shipping it to the customer, your company
has costs equating to $50, which are accounted for under deferred
expenses.
At the point in time when the company satisfies the terms of the sales order,
which in this example happens when the company delivers the widget to the
customer, the company may recognize the pre-payment of $100 as

recognized, or earned, revenue and may also recognize the $50 in deferred
expenses as actual, or realized, expenses.
RevPro is a revenue automation software which provide complete order to
cash management process functionality, its calculate and recognition
revenue and differed revenue by collect data from multiple sources like SAP,
Salesforce and perform functions including
1. Revenue Contract Grouping : Set up rules for grouping transactions of goods/services into revenue contracts
Identify and manage contract groupings
Create new contracts or add to existing contracts

2. Identify Performance Obligations (POB): Transactions mapped to POBs according to user-defined rules and templates
Define policies for timing and allocation of revenue
Set up rules for deferral and release of associated costs

3. Revenue Contract Workbench: View contract/POB/transaction detail and manually adjust if necessary, including
changing
POB template, adjusting forecast, releasing revenue, creating new POBs
De-link or re-link contracts or transactions
Configuration of standard and other cost accounting
See waterfall report and actual accounting entries

4. Analyze Variable Consideration (VC Analyzer): Analyzes historical data to calculate variable consideration and apply transaction
price
(Or user can upload)
Adjust VC/TP based on actuals or changes to estimates
See changes in Variable Consideration over time for transactions and contracts;
Manually update VC amount

5. Allocation:-

Automatically allocates transaction price across all eligible POBs in a contract

Systematically performs retrospective or prospective allocation and re-allocation as
Contracts are modified

6. Stand-alone Selling Price (SSP) Calculator: Analyzes historical data to calculate SSP (or user can upload)
Residual SSP derivation

7. Post To General Ledger: After releasing revenue its post those value to the General Ledger with multiple set
of books (GAAP/IFRS
).

8. Reporting/Forecasting Intelligence:-

 Processes contracts under multiple rule sets including current and future
GAAP/IFRS
User-customizable reporting and analytics
Detailed forecasting capabilities
Support for multiple currencies

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@Need further clarification on following points:Business Process: - Complete understand MSCI S&D and Revenue
Recognition Business Process.
Integration:-What are the various Master and Transaction Data
create in ECC and flow to RevPro and vice versa.
Events Type: - Various Events Types Business Functionality need
brief explain Define in RevPro.
Detail Design Document: - Need to go through the Detail Design
Document as explain in User Manual.
DEMO: - Need a complete DEMO cycle to understand the RevPro
functionality along with its integration with ERP (SAP) system.

6. Tables: - What are various tables where master data, calculation rule,

plan & actual transaction data are stored in RevPro. (EX- TVARV)