Revenue Verification Workflow

1. Executive Summary

Purpose

Revenue Verification is a monthly-close workflow in which the Finance team confirms that revenue item statuses, date statuses, and end-date flags are accurate before those items can be posted to the general ledger. It surfaces revenue items that need human review, organizes them by risk category and coverage requirement, and records an immutable audit trail of every verification decision.

The workflow replaces ad-hoc spreadsheet-based reconciliation with a structured dashboard that tracks confirmation coverage, flags deal-level anomalies, and stores all decisions in revenue_verification_audit for compliance reporting.

Scope

Covered:

Revenue Verification dashboard — the central view showing verification progress and risk categories
Required confirmation workflows: Items to Confirm (revenue status) and Dates to Confirm (date status)
Coverage-threshold review: Services Complete and Services In-Progress above the dollar threshold
Deal value checks: items starting/ending this month, negative deal totals, tentative end dates
Setting revenue item status (U, C, M), date status (U, C), and tentative_end_date_ind
Adding free-text notes to revenue items
Marking in-progress items as reviewed (DATES_REVIEWED event)
Verification audit trail (revenue_verification_audit)

Not covered (documented separately):

Revenue item and billing item creation — see Billing Items Workflow
Rebilling and deduction management — see Billing Items Workflow
GL posting of revenue transactions — see Accounting Jobs

Key Objectives

Ensure 100% of revenue items requiring confirmation are reviewed before month-end close.
Surface high-value in-progress items above a configurable dollar threshold for coverage review.
Flag unusual deal-level patterns (items starting/ending mid-month, negative totals, provisional end dates).
Produce an immutable, field-level audit record of all verification decisions for compliance.

2. Process Overview

mermaid

flowchart TD
    A[Finance team opens Revenue Verification dashboard] --> B{Filter by Entity, Department, Month}
    B --> C[Dashboard shows Required Confirmations and Coverage stats]
    C --> D[Required Confirmations section]
    D --> E[Items to Confirm: revenue items with revenue_status = U]
    D --> F[Dates to Confirm: revenue items with date_status = U for completed services]
    C --> G[Deal Value Checks section]
    G --> H[Items Starting/Ending This Month]
    G --> I[Negative Deal Totals]
    G --> J[Tentative End Dates]
    C --> K[Coverage Threshold section]
    K --> L[Services Complete above threshold]
    K --> M[Services In-Progress above threshold]

    E --> N[User opens item detail panel]
    F --> N
    H --> N
    I --> N
    J --> N
    L --> N
    M --> N

    N --> O{Action}
    O --> P[Set revenue_status: C or M]
    O --> Q[Set date_status: C]
    O --> R[Toggle tentative_end_date_ind]
    O --> S[Add note]
    O --> T[Mark Reviewed - for in-progress items]
    P --> U[revenue_verification_audit row written: REVENUE_STATUS]
    Q --> V[revenue_verification_audit row written: DATE_STATUS]
    R --> W[revenue_verification_audit row written: TENTATIVE_END_DATE]
    S --> X[revenue_verification_audit row written: NOTE]
    T --> Y[revenue_verification_audit row written: DATES_REVIEWED]
    U --> Z[Dashboard coverage stats update]
    V --> Z
    W --> Z
    X --> Z
    Y --> Z

Walkthrough

Open the dashboard — The Finance team navigates to /revenue/verification. Top-level filters (Entity, Department, Month) apply across all dashboard sections simultaneously.
Check Required Confirmations — Two cards show items requiring 100% completion: "Items to Confirm" (revenue items with revenue_item_status_cd = 'U') and "Dates to Confirm" (items with revenue_item_date_status_cd = 'U' whose service dates have passed). No items in these categories can be left unreviewed.
Check Coverage — A banner shows total verified revenue as a percentage of all revenue in scope. The user can set a target coverage threshold (80–95%) and a minimum dollar threshold to focus on high-value items.
Review Deal Value Checks — Four cards surface anomalous patterns for the month: items starting this month, items ending this month, deals with negative totals, and items with tentative_end_date_ind = true. These are review-optional but must be acknowledged.
Open item detail panel — Clicking any item opens a detail side panel showing: full revenue item fields, recognition schedule, rebilling history, and the full revenue_verification_audit timeline for that item.
Take action — From the detail panel the user can:
- Set revenue status — Confirm (C) or mark as Missed (M). Writes a REVENUE_STATUS audit record.
- Set date status — Confirm dates (C). Writes a DATE_STATUS audit record.
- Toggle tentative end date — Mark the end date as provisional or confirmed. Writes a TENTATIVE_END_DATE audit record.
- Add a note — Free text attached to the item. Writes a NOTE audit record.
- Mark Reviewed — For in-progress items above threshold, marks the item as reviewed for this close cycle without changing its status. Writes a DATES_REVIEWED audit record.
Repeat until coverage targets are met — The dashboard updates as items are confirmed. Month-end close proceeds once Required Confirmations reach 100% and overall coverage meets the threshold.

3. Business Rules

3.1 Required Confirmations Must Reach 100%

Business rule: "Items to Confirm" and "Dates to Confirm" are not coverage-threshold items — they require 100% completion. Every revenue item with revenue_item_status_cd = 'U' (Items to Confirm) and every completed-service item with revenue_item_date_status_cd = 'U' (Dates to Confirm) must be actioned before close.

3.2 Coverage Threshold Is Configurable

Business rule: The Finance team sets a target coverage percentage (default 90%) and an optional minimum dollar threshold. Items below the threshold are excluded from coverage calculations. The dashboard displays progress toward the target and flags when it has been reached.

3.3 Verification Audit Records Are Immutable

Business rule: Every status change, date status change, note, tentative end date toggle, and reviewed marker writes a new row to revenue_verification_audit. Rows are never updated or deleted. The previous value for any field is inferred from the prior audit record of the same field_type_cd for the same revenue_item_id.

Foundation reference: Billing Items Data Model — revenue_verification_audit

3.4 Status Transitions Are Forward-Only Via Audit

Business rule: Revenue item status can change from U to C or M, but there is no "undo" button. A new audit record is written each time the status changes, and the current status is derived from the most recent audit record. Users can re-set a status by applying a new action — the audit trail preserves all prior decisions.

3.5 Tentative End Date Flag Surfaces in Deal Value Checks

Business rule: When revenue_item.tentative_end_date_ind = true, the revenue item appears in the "Tentative End Dates" deal value check card. Finance must review these items because the end date may affect revenue recognition schedules and GL posting. Setting tentative_end_date_ind = false removes the item from this card.

Foundation reference: Billing Items Data Model — revenue_items.tentative_end_date_ind

3.6 Notes Are Additive, Not Replacements

Business rule: Each note added to a revenue item creates a new revenue_verification_audit row with field_type_cd = 'NOTE'. Prior notes are not replaced — the full note history is preserved and visible in the audit timeline on the detail panel.

3.7 Mark Reviewed Is for In-Progress Items Only

Business rule: The "Mark Reviewed" action (which writes a DATES_REVIEWED audit event) is available only for items in the "Services In-Progress" view — items whose service is still ongoing but whose revenue value exceeds the coverage threshold. It does not change revenue_item_status_cd or revenue_item_date_status_cd. It signals that the Finance team has reviewed the item for this close cycle.

4. Verification Categories

4.1 Required Confirmations

Category	Criteria	Required Action
Items to Confirm	`revenue_item_status_cd = 'U'` and service complete	Set status to `C` (Confirmed) or `M` (Missed)
Dates to Confirm	`revenue_item_date_status_cd = 'U'` and service complete	Set date status to `C` (Confirmed)

4.2 Coverage-Threshold Reviews

Category	Criteria	Required Action
Services Complete	Service complete; revenue ≥ dollar threshold	Confirm status/dates or add note
Services In-Progress	Service ongoing; revenue ≥ dollar threshold	Mark Reviewed or confirm if appropriate

4.3 Deal Value Checks

Category	Criteria	Purpose
Items Starting This Month	`revenue_item_start_dt` falls in the current month	Validate that new-booking revenue recognition is correct
Items Ending This Month	`revenue_item_end_dt` falls in the current month	Validate that ending-service revenue recognition is complete
Negative Deal Totals	Deal's aggregate revenue item total < 0	Flag reversals or data errors
Tentative End Dates	`tentative_end_date_ind = true`	Flag items whose end date and recognition timeline may change

5. Audit Field Types

All verification actions write to revenue_verification_audit. The field_type_cd identifies what changed:

`field_type_cd`	`new_value` format	Triggered by
`REVENUE_STATUS`	Status code (`U`, `C`, `M`)	Setting revenue item status
`DATE_STATUS`	Status code (`U`, `C`)	Setting date status
`NOTE`	Note text (free text)	Adding a note
`TENTATIVE_END_DATE`	`true` or `false`	Toggling tentative end date flag
`DATES_REVIEWED`	Timestamp string	Clicking "Mark Reviewed" on in-progress item

Foundation reference: Billing Items Data Model — revenue_verification_audit

6. Permissions & Role-Based Access

Revenue Verification is operated by the Finance / Client Accounting team. No separate new role is defined — access follows existing role permissions on revenue items.

Action	CASH_PROCESSOR	IT	Finance (Accounting)
View dashboard	Yes	Yes	Yes
Set revenue status (C / M)	—	Yes	Yes
Set date status (C)	—	Yes	Yes
Toggle tentative end date	—	Yes	Yes
Add note	Yes	Yes	Yes
Mark Reviewed	—	Yes	Yes

7. Integration Points

7.1 Upstream

Source	Data Provided
Billing Items Workflow	Revenue items and their current `revenue_item_status_cd`, `revenue_item_date_status_cd`, `tentative_end_date_ind`
Deal Engine	Recognition schedules (`revenue_item_schedules`) shown in the detail panel

7.2 Downstream

Consumer	Data Consumed
GL Posting Batch	Confirmed (`C`) revenue items and their recognition schedules become eligible for GL posting
AR Aging / Reports	`revenue_item_status_cd` and `revenue_item_date_status_cd` affect which items surface in coverage and aging reports

8. Functional Screen Requirements

8.1 Revenue Verification Dashboard

Route: /revenue/verification

Top filter bar: Entity (multi-select), Department (multi-select), Month (month picker). Applies to all sections.

Required Confirmations section:

Two cards: "Items to Confirm" count and "Dates to Confirm" count
Each card shows item count and links to the sub-workflow list view
Target: 0 remaining in each card before close

Total Revenue Coverage banner:

Verified revenue ($) / Total revenue ($) as a percentage bar
Target threshold selector (dropdown: 80%, 85%, 90%, 95%)
Dollar threshold override (manual input: ignore items below $X)

Deal Value Checks section:

Four cards: Items Starting This Month, Items Ending This Month, Negative Deal Totals, Tentative End Dates
Each card shows item count and configurable minimum total revenue threshold

8.2 Item Detail Panel (Side Sheet)

Triggered by: Clicking any revenue item row across all sub-workflow list views.

Section	Content
Header	Revenue item name, status badge (U/C/M), date status badge (U/C), tentative end date badge
Financial summary	Gross amount, commission %, commission amount, start/end dates
Recognition schedule	`revenue_item_schedules` rows: date, amount, posting status
Rebilling history	Prior billing item versions if rebilling has occurred
Audit timeline	All `revenue_verification_audit` rows for this item, in reverse chronological order, with field type icons and actor info
Action panel	Status selector, date status selector, tentative end date toggle, note text area, Mark Reviewed button (in-progress view only)

9. Cross-References

Document	Relationship
Billing Items Workflow	Revenue items and billing items are created and managed there; this workflow operates on the same records during month-end close
Billing Items Data Model	`revenue_item`, `revenue_verification_audit` table definitions and field-type codes
AR Aging Workflow	AR aging uses `revenue_item_status_cd` and `billing_item` open/current flags to produce aging reports

Sample Deals

Touring Deal

Endorsement Deal

Sports Endo Deal

Appendices

Appendices

Appendices

Revenue Verification Workflow ​

1. Executive Summary ​

Purpose ​

Scope ​

Key Objectives ​

2. Process Overview ​

Walkthrough ​

3. Business Rules ​

3.1 Required Confirmations Must Reach 100% ​

3.2 Coverage Threshold Is Configurable ​

3.3 Verification Audit Records Are Immutable ​

3.4 Status Transitions Are Forward-Only Via Audit ​

3.5 Tentative End Date Flag Surfaces in Deal Value Checks ​

3.6 Notes Are Additive, Not Replacements ​

3.7 Mark Reviewed Is for In-Progress Items Only ​

4. Verification Categories ​

4.1 Required Confirmations ​

4.2 Coverage-Threshold Reviews ​

4.3 Deal Value Checks ​

5. Audit Field Types ​

6. Permissions & Role-Based Access ​

7. Integration Points ​

7.1 Upstream ​

7.2 Downstream ​

8. Functional Screen Requirements ​

8.1 Revenue Verification Dashboard ​

8.2 Item Detail Panel (Side Sheet) ​

9. Cross-References ​

Revenue Verification Workflow

1. Executive Summary

Purpose

Scope

Key Objectives

2. Process Overview

Walkthrough

3. Business Rules

3.1 Required Confirmations Must Reach 100%

3.2 Coverage Threshold Is Configurable

3.3 Verification Audit Records Are Immutable

3.4 Status Transitions Are Forward-Only Via Audit

3.5 Tentative End Date Flag Surfaces in Deal Value Checks

3.6 Notes Are Additive, Not Replacements

3.7 Mark Reviewed Is for In-Progress Items Only

4. Verification Categories

4.1 Required Confirmations

4.2 Coverage-Threshold Reviews

4.3 Deal Value Checks

5. Audit Field Types

6. Permissions & Role-Based Access

7. Integration Points

7.1 Upstream

7.2 Downstream

8. Functional Screen Requirements

8.1 Revenue Verification Dashboard

8.2 Item Detail Panel (Side Sheet)

9. Cross-References