Revenue Recognition - Project Details / Task List
Tag: revenue-recognition
Total Hours: 75h
Structure: Multi-Milestone (>50h)
Milestone 1: Revenue Recognition - 1. Assessment & Configuration
Tag: revenue-recognition
Description: Audit current revenue tracking, define metric specifications with Finance/Sales alignment, and build CRM revenue fields with validation rules.
Hours: 32h
Task List: (Revenue Recognition) 1. Assessment & Configuration
Contains: Parts 1-2
| Task | Est | Description |
|---|---|---|
| 1. Audit Current Revenue Tracking Practices | 5h | Document how revenue metrics are currently being tracked across CRM, spreadsheets, and accounting systems to establish baseline and identify gaps. End state: Current state assessment showing what exists, what's missing, and where inconsistencies occur. • Interview Finance Controller and VP of Finance to document current revenue recognition policies and pain points • Pull existing CRM opportunity field list and identify which revenue metrics exist vs. are missing (ARR, ACV, TCV, Net New ARR, Contract ARR, Net ARR) • Review sample of 10-15 closed-won deals to identify inconsistencies in how revenue is being recorded • Document all spreadsheets and manual calculations currently used for revenue reporting • Map current quote-to-cash process flow from opportunity creation through invoice generation |
| 2. Map System Integration Points | 5h | Document all systems involved in the revenue lifecycle and how data flows between them. End state: Clear integration map showing CRM, billing, and accounting system connections and data dependencies. • Identify all systems in quote-to-cash process (CRM, CPQ, billing, accounting/ERP) • Document integration points between CRM and billing system (e.g., Salesforce to Stripe/Chargebee) • Map data flow from CRM to accounting software (e.g., Salesforce to QuickBooks/NetSuite/Xero) • Identify which system is current source of truth for each revenue metric • Document any API connections, sync schedules, and data transformation logic |
| 3. Define Revenue Metric Specifications | 6h | Align Finance and Sales on exact definitions and calculation logic for each revenue metric before building. End state: Written metric definitions document signed off by VP Finance, Controller, and VP Sales. • Define ARR calculation logic (include/exclude one-time fees, how to handle multi-year deals) • Define ACV calculation (annual contract value including any one-time components) • Define TCV calculation (total contract value across full term) • Define Net New ARR (new logo ARR + expansion ARR - contraction ARR - churn ARR) • Define Contract ARR (ARR at time of contract signature vs. start date) • Document handling rules for edge cases: usage-based pricing, ramped deals, mid-term upgrades/downgrades • Get explicit written sign-off from Finance and Sales leadership on all definitions |
| 4. Build Core Revenue Metric Fields | 6h | Create the primary revenue tracking fields in the CRM with formula calculations that auto-compute based on opportunity data. End state: Six core revenue fields created and calculating correctly on opportunity records. • Create ARR field with formula based on subscription amount and contract term • Create ACV field with formula including subscription + one-time fees (per definition) • Create TCV field with formula calculating total value across contract term • Create Net New ARR field (may require rollup or flow logic for expansion/contraction tracking) • Create Contract ARR field capturing ARR at booking moment • Create Monthly Recognized Revenue field for deferred revenue tracking • Test all formula calculations against 5 sample opportunities with known correct values |
| 5. Build Supporting Fields for Revenue Tracking | 5h | Create the secondary fields needed to support revenue calculations and handle various deal structures. End state: Complete field set supporting all revenue scenarios the client encounters. • Create Contract Start Date and Contract End Date fields (if not existing) • Create Contract Term (Months) field with formula calculating term length • Create Revenue Type picklist (New, Expansion, Renewal, Contraction, Churn) • Create One-Time Fees field to separate from recurring revenue • Create Usage/Variable Revenue field for variable pricing components • Create Billing Frequency field (Monthly, Quarterly, Annual, Upfront) • Document field dependencies and calculation order |
| 6. Configure Validation Rules & Data Quality Controls | 5h | Implement validation rules that prevent deals from closing without complete revenue data. End state: Validation rules active ensuring data integrity at deal close. • Create validation rule requiring Contract Start Date before marking Closed Won • Create validation rule requiring Contract Term (Months) with minimum/maximum bounds • Create validation rule requiring Revenue Type selection at Closed Won • Add error messages explaining what's missing and how to fix it • Configure validation rule exceptions for edge case handling (documented) • Test validation rules by attempting to close opportunities with missing data |
Milestone 2: Revenue Recognition - 2. Reporting, Enablement & Handoff
Tag: revenue-recognition
Description: Build revenue schedules and dashboards, train Sales and Finance teams, validate calculations, and hand off to client.
Hours: 43h
Task List: (Revenue Recognition) 2. Reporting, Enablement & Handoff
Contains: Parts 3-5
| Task | Est | Description |
|---|---|---|
| 7. Create Revenue Schedule Templates | 6h | Set up deferred revenue tracking that automatically calculates monthly recognition based on contract terms. End state: Revenue schedule objects/logic that break contract value into monthly recognition amounts. • Design revenue schedule object structure (parent-child with opportunity or custom object) • Build logic to generate monthly revenue schedule records from opportunity data • Configure recognition start date logic (contract start vs. first invoice vs. service delivery) • Handle pro-rated first/last month calculations • Set up revenue schedule status tracking (Scheduled, Recognized, Adjusted) • Create sample revenue schedules for 3-5 deal types (monthly, annual, multi-year) |
| 8. Build Revenue Dashboards & Reports | 6h | Create CRM reports and dashboards showing key revenue metrics for Finance and leadership. End state: Executive dashboard with ARR by segment, Net New ARR trending, and revenue waterfall views. • Build ARR by segment/product report (filterable by time period, owner, region) • Create Net New ARR by quarter report showing new, expansion, contraction, churn components • Build Contract ARR waterfall report showing opening → changes → closing ARR • Create revenue forecast vs. recognized revenue comparison report • Build Finance reconciliation report matching CRM to billing/accounting records • Configure dashboard with key metrics: Total ARR, Net New ARR (QTD/YTD), ARR Growth Rate • Set up scheduled report delivery to Finance and RevOps stakeholders |
| 9. Test Revenue Calculations Against Edge Cases | 5h | Validate all revenue field calculations and schedules work correctly across different deal scenarios. End state: Documented test results confirming calculations handle all standard and edge case scenarios. • Test standard new business deal (12-month subscription, annual billing) • Test multi-year deal (36-month contract with annual escalator) • Test expansion mid-contract (upgrade adding ARR to existing deal) • Test contraction/downgrade scenario • Test early renewal scenario (renewal before current term ends) • Test usage-based component mixed with subscription • Document any calculation issues and fix formulas as needed • Get Finance sign-off that calculations match their expected values |
| 10. Conduct Sales Team Training | 4h | Train sales team on new opportunity fields, revenue data requirements, and why accurate entry matters. End state: Sales team trained and comfortable entering required revenue data on deals. • Schedule 45-minute training session with full sales team • Cover: what each revenue field means, why Finance needs accurate data, validation rule expectations • Walk through deal entry process with new required fields • Demonstrate what happens when trying to close deal with missing data • Create quick-reference guide for reps (1-page PDF with field definitions) • Record training session for future onboarding • Send follow-up email with recording link and reference doc |
| 11. Train Finance Team on CRM Revenue Reporting | 4h | Enable Finance to pull revenue reports from CRM and reconcile with accounting system. End state: Finance team self-sufficient in accessing CRM revenue data and running reconciliation. • Schedule 45-minute training session with Finance/Accounting team • Cover: how to access revenue dashboards, how to run standard reports, export options • Walk through monthly reconciliation process: CRM ARR vs. billing system vs. GL • Demonstrate revenue schedule views and deferred revenue tracking • Show how to identify and flag data discrepancies for RevOps to fix • Create Finance user guide with report locations and reconciliation steps • Record training and share with Finance team |
| 12. Create Revenue Recognition Documentation Package | 4h | Document all field definitions, calculation logic, and processes for ongoing reference and compliance. End state: Complete documentation package enabling client self-sufficiency. • Create Revenue Recognition Policy document with all metric definitions and formulas • Document field descriptions and calculation logic for admin reference • Write step-by-step reconciliation runbook for monthly Finance process • Create troubleshooting guide for common data issues • Document edge case handling procedures for non-standard deals • Compile all docs into single folder/location for client access |
| 13. Run Parallel Reconciliation Period | 5h | Run CRM revenue reports alongside existing process for 1-2 weeks to validate accuracy before cutting over. End state: Confirmed that CRM revenue metrics match Finance expectations within acceptable tolerance. • Run first monthly close using both old process and new CRM reports • Compare ARR totals between CRM and existing spreadsheet/system • Identify and resolve any discrepancies (data entry errors vs. calculation issues) • Document variance explanations for Finance leadership • Make any final formula adjustments based on reconciliation findings • Get Finance sign-off that CRM can become primary revenue source |
| 14. Establish Ongoing Data Quality Process | 5h | Set up recurring checks and responsibilities to maintain revenue data integrity over time. End state: Monthly data quality process documented and assigned to specific owner. • Create monthly revenue data quality checklist for RevOps • Set up automated report flagging opportunities with missing/suspicious revenue data • Define escalation path for deals that fail validation but need exception handling • Assign data quality owner (typically RevOps) with clear responsibilities • Schedule recurring monthly data quality review meeting (15-30 min) |
| 15. Project Handoff & Close | 4h | Transfer all documentation, access, and ownership to client team and close out engagement. End state: Client fully self-sufficient with all credentials, documentation, and support contacts. • Transfer admin credentials and access to client RevOps lead • Deliver complete documentation package (policy doc, field guide, runbooks) • Conduct final walkthrough of system with primary client stakeholders • Schedule 30-day check-in call to address questions and edge cases • Document any known limitations or future enhancement recommendations • Close out project and confirm client satisfaction |
Summary
- Total Milestones: 2 (32h + 43h)
- Total Task Lists: 2 (consolidated from 5 Parts)
- Total Tasks: 15 (one per Step)
- Total Hours: 75h
- Generated from: playbook_revenue-recognition.md
- Generated on: 2025-12-31