Required configurations and best practices for using Order to Revenue
We recommend the following required configurations and best practices to achieve proper revenue accounting results in Zuora Revenue.
Required settings
This section describes the required settings for Zuora Billing and Zuora Revenue respectively.
Required Zuora Billing settings
Make sure that you configure the following settings in Zuora Billing as given below.
- The following table lists the billing rule settings with the required values for the Order to Revenue feature to work:
Billing rule setting | Required value |
---|---|
Bill recurring charges for partial month (with monthly based billing periods)? | Yes |
Bill recurring charges for partial week (with weekly based billing periods)? | Yes |
Bill usage charges for partial month (with monthly based billing periods)? | Yes |
Bill usage charges for partial week (with weekly based billing periods)? | Yes |
Create credit memos mirroring invoice items? | Yes or Yes but do not create for zero balance invoice items |
When prorating a month, assume 30 days in a month or use actual days? | Use actual number of days |
When prorating periods greater than a month, prorate by month first, or by day? | Prorate by day |
When bill credit for recurring charges, based on billed period or credit period | Based on the total billing period amount and charged amount |
Invoice Past End-of-Term when Auto-Renew is OFF? | No |
Invoice Past End-of-Term when Auto-Renew is ON? | No |
- The following table lists the default subscription settings with the required values:
Default subscription setting | Required value |
---|---|
Allow update Subscription trigger dates | No |
Update Rate Plan Charge trigger condition | No |
- Contact Zuora Global Support to enable the Subscription Term for Revenue feature. For more information, see Subscription term for revenue generation.
- Contact Zuora Global Support to enable the Finance feature. Also, complete the following Finance settings:
- Home Currency
- Reporting Currency
Required Zuora Revenue settings
Make sure that you configure the following settings in Zuora Revenue as given below.
Setting | Setting Type | Recommended Value |
---|---|---|
INVOICE_CONTRACT_RATABLE | Profile | Yes |
ENABLE_CONTRACTUAL_PROSPECTIVE | Profile | Yes |
ALLOW_OVERSTATED_INVOICE | Profile | Yes |
SSP_WITHIN_FV_GRP_BY_COL | Profile | PRNT_CHRG_NUM : PRNT_CHRG_SEGMENT |
CREATE_RORD_CONTRA_ENTRY | Profile | No |
CONSUME_DELETED_TRANSACTION | Profile | No |
REPORTING_CURRENCY | Profile | Default to USD, but can be changed as per requirements |
Best practices
The following billing operations contribute to the reconciling items for financial audits.
Use invoice reversal instead of un-posting, canceling, or deleting invoices and memos
Once the following transactions are posted, do not perform the un-posting, canceling, or deleting operations in Zuora Billing, as the transactions might have already been accounted for in Zuora Revenue. These operations disturb the accounting generated in Zuora Revenue and cause data inconsistency between Billing and Revenue. Instead, you can use invoice reversals to perform the preceding operation.
- Invoice items
- Credit memos
- Debit memos
- Invoice item adjustments
Do not delete amendments or orders
Once an amendment or order is activated, do not delete the amendment or order in Zuora Billing, as the transactions might have already been accounted for in Zuora Revenue. The deletions disturb the accounting generated in Zuora Revenue and cause data inconsistency between Billing and Revenue. Instead, you can use scheduled orders to perform the preceding operations on future-dated order actions.
Regenerate transactions manually
If you find data inconsistency between the booking CCV amount and the total billing amount, use the Regenerate booking transactions API operation to regenerate the booking transactions.