These high-level steps help you get started with revenue recognition with minimal conceptual information. If you are new to revenue recognition, review these steps to get an overview of revenue management process. If you are familiar with revenue recognition and want to jump in without a lot of detail, these steps can guide you.
The following is a step summary on how to set up revenue recognition and how to manage revenue schedules and distribution using the Zuora application:
Before you can set up Revenue Recognition, the following are required:
Zuora recommends creating at least five years of accounting periods.
Set up your chart of accounts and associate revenue and deferred revenue accounting codes with product rate plan charges. Revenue and deferred revenue accounting codes are used for accounting close and reporting purposes.
Setting up Revenue Recognition involves defining rules that automatically or manually create and distributes revenue into accounting periods.
Optionally, define revenue event types. Zuora has standard revenue event types, but you can create your own.
Use the Revenue Workbench to assist with managing revenue schedules and distribution.