The Flowrev cost and revenue recognition and life cycle management system is easy to use. To get started, and to create a recognition schedule, just follow the below steps which walks you through the process of creating revenue schedules (step 9 summarizes costs). See the screen shots at this bottom of the page. You can also watch the demo video.
- Log in to Flowrev (or sign up - welcome!).
- "CONNECT" to and authorize Flowrev with organizations in your cloud based accounting system. On connect, and after you authorize it, Flowrev pulls over the needed chart of accounts, (inventory) items if any have been created, tracking categories for Xero or Department and Class for QuickBooks. [Home page]
Tip 1: Review the prep work solution article prior to connecting to your accounting system, and review the how to connect to Xero or the how to connect to QuickBooks solution article too.
Tip 2: If you have connected prior, you can just use "SELECT ORG | Select Company" to select the company to work with vs. "CONNECT." Once selected, use "UPDATE SELECTED" from the "Org > Change/Update" for Xero or for QuickBooks the "Company > Change/Update" page to pull over new / modified transactions and data.
- Specify an account map to determine which account sale deferral amounts and recognition amounts should go to, etc. [Accounts page]
Note: This is typically a one time setup per company. For details, see this article. Flowrev supports multiple deferral and recognition accounts too, which is detailed in linked articles.
- Optionally, specify the recognition parameters for your Items e.g. Monthly, Per Diem (for details, see this article). [Items page]
These settings specify how often you want amounts recognized on the PnL/Income Statement, and how each accounting period amount recognized is to be computed as a function of transaction amount and the contract duration specified in Step 5
Note: For Product/Services or "Inventory items," including those just used for invoicing convenience in some accounting systems, this is typically set once during initial setup, and changes only if the business decides to treat recognition differently over time. If you do not use items in your accounting system, you can skip this step.
The recognition parameters can also be set/overridden on each invoice line from the invoice details page. For invoice lines not based upon Items or Products/Services, the parameters can be set from the invoice details page, or by utilizing a company wide default setting. The same applies to bills and bill lines.
- To load or update the transactions e.g. invoices and bills that are the basis for cost and revenue recognition, for Xero go to the ORG > Change/Update or for QuickBooks go to the COMPANY > Change/Update page and click "Update Selected" - ensure that the elements you wish to update and load is checked.
- Set the service start and end dates of invoices and its individual line items (for details, see this article). You'd do this for all invoices / invoice lines for which you'd like to create a schedule. [Invoices or Invoice details page]
Note: You can set the dates in bulk from the Invoices page, or individually from each invoice detail page. Use the latter approach if you need to set different dates for different invoice lines. Date setting can be automated using the auto date feature described in this article.
If you do not use or set recognition parameters for Items / Product / Services, in addition to service dates, you would also specify/check the recognition cadence and recognition computation for each invoice line from the invoice details page.
- Generate the revenue recognition schedule by going to the "Revenue" page, and clicking on the "Generate revenue schedule" button (see screen shot below). [Revenue page]
Flowrev will generate the revenue deferrals and recognition schedule for the selected time period based upon prior specified parameters. For example, an invoice with a date different from its service start date will get deferred on the invoice date, and the amount will be recognized once the service is delivered as defined by the service delivery dates you specify.
Note: The schedule generation process will evaluate all invoices in the selected fiscal year and create schedules if one is needed based upon the recognition parameters including service dates defined. More details are in this article.
- Sync the recognition schedule(s) with your accounting system from the "Revenue" page by clicking the sync button above each month's label - see the screen shot below. You can choose when to sync, which months to sync etc. [Revenue page]
Note: Flowrev recommends reviewing each schedule prior to sync. If a schedule needs to be replaced, first cancel the existing schedule using the topmost "Trash->" button on the schedule, then set the line parameters again and run this step.
- Repeat steps 6. to 8. from the "Bills" and "Costs" page for bills to generate cost recognition schedules. On the COSTS page, bill lines mapped to EXPENSE accounts will show in the "costs" row, and non-expense mapped lines in the "Review for CostRec" row.
- Use the download icon on the Revenue or Costs page to download detailed schedule data as CSV for any external analysis or to create any custom needed. See this article for details.
You will see this workflow on the home page once you log in (see below). Follow the steps in sequence the first time for each organization. You can subsequently go directly to the steps that are relevant to you e.g. Step 1, 3, 4 and 5.
"MAP ACCOUNTS" IS A ONE TIME SETUP, AND SUBSEQUENTLY THE BUTTON CHANGES TO "UPDATE ORG."
Note: After accounts have been mapped, the button changes to "UPDATE ORG." which can be used to visit the Org page from where one can update the org data and load new invoices, etc. Clicking the numbered process step buttons shown above will take you to specific pages from where you run the actual operation.
MAP THE ACCOUNTS
Note: This is a one time setup. Your account selections are saved only when you click "Map Accounts." Also read this article. Flowrev also supports multiple deferral and recognition accounts.
SET "INVENTORY" ITEMS (if any) RECOGNITION PARAMETERS TO SPECIFY TYPE OF SCHEDULE
Note: Typically this is a one time setup. Your recognition parameters selections are saved only after you click "Update Parameters." Recognition parameters can also be set per invoice or bill line, to override any inventory item set parameter, from the invoice or bill details page. Once, Monthly, Quarterly, Years specifies the frequency of recognizing amounts to the PnL/Income statement. The duration of the contract is specified via service dates in the step below. Also read this article.
SET INVOICE (or INVOICE LINE) SERVICE START AND END DATES TO SPECIFY CONTRACT DURATION
Note: Click "Update service dates" to save selected dates (dates are selected only when highlighted in blue and "Apply" is clicked). You can set dates for all invoices shown on the "Invoices" page and save using "update service dates" at one time. To set different dates for each invoice line on an invoice, or to override recognition parameters for an invoice (or bill line), visit the invoice (or bill) details page (OPS column). Also read this article.
GENERATE THE REVENUE RECOGNITION SCHEDULES FROM THE REVENUE PAGE
Note: When you click "Generate Revenue Schedule" Flowrev will process every line on every invoice with invoice date within the selected fiscal year, and generate schedules for invoice lines that need to have one based upon the recognition parameters, and the service dates. It will report any setup issues or those requiring attention as it cross checks each line. See this article for details.
Note: To sync the recognition schedules to your accounting system, click the square button above each month's label in the Revenue table on the Revenue page.