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Why Revenue Recognition?

Why Zuora's Revenue Recognition? Find out how our Zuora Finance Revenue Recognition is designed to manage your recurring revenue.

Zuora Finance: Manage Recurring Revenue

 

Revenue Recognition determines when revenue can be recognized for a service.  Revenue recognition follows the basic principle that revenue can be recognized when a service has been provided and when you are likely to receive payment for that service.

Recognizing revenue in a subscription business model introduces new challenges

1

Your revenues are constantly changing with subscription lifecycle events

Customer upgrades, downgrades, and amendments affect subscription revenue schedules, and your business needs to maintain a real-time and up-to-date snapshot of revenues.

2

Your revenue recognition is complex

Your subscription pricing models result in complex revenue recognition processes which, without automation, lead to countless hours of manual processes and audit risk.

Zuora Finance lets you automate revenue distribution and stay up-to-date on subscription revenue schedules

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Flexible Revenue Recognition Automation

Automate revenue recognition with a combination of out-of-the-box recognition models that require no coding and an extensible API framework for complex requirements.

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Configurable Recognition Rules

Easily create and configure separate revenue recognition rules for different products.

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Built-in Subscription Lifecycle Awareness

Automatically have revenue schedules adjusted as changes occur in the subscription lifecycle.

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Revenue Schedule Management

View revenue schedules in real-time while having the flexibility to manually distribute revenue across accounting periods.

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Deferred and Earned Revenue Reporting

View deferred and earned revenue summaries in Zuora and run reports for additional details.

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Revenue Audit Tracking

Maintain an audit trail by tracking and reporting on all changes made to revenue.

Key Features

Revenue Recognition offers:

Common Scenarios

Common scenarios of revenue recognition include:

Billing-based policy 

Revenue is recognized upon sending the invoice, which is a billing-based policy. For example invoicing $300 for January through March results in $100 of revenue recognition for each month in the three-month period. A delay in recognition could occur, such as when payment receipt is past due or service activation date is pushed out. 

Custom revenue schedule

Any number of custom scenarios where you would like to have complete control over your revenue recognition. 

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