You can distribute or change the distribution of revenue amounts in any open accounting period. The article explains how to manually distribute revenue.
About Revenue Distribution
You can manually distribute revenue into any open accounting period. Manual distribution is allowed on auto-created revenue schedules and manually created revenue schedules.
Distribute revenue amounts when you need to:
- Move undistributed revenue from an open-ended period to an open accounting period.
- Manually distribute revenue on a subscription charge that uses a manual recognition rule.
- Adjust revenue amounts in open accounting periods.
To distribute revenue, the following are required:
- The revenue schedule is created.
- The accounting period must be open.
You can distribute revenue through the Zuora UI or through REST APIs. The rest of this article explains how to distribute revenue using the Zuora UI.
See Distribute revenue across accounting periods or Distribute revenue by recognition start and end dates for more information on using REST API calls to distribute revenue.
You must have the Change Revenue Distribution permission to manually distribute revenue. See Finance Roles for more information.
How to Distribute Revenue
You can distribute revenue using the following methods:
- Manually: Enter the new amounts of revenue for each accounting period. Check that the sum of the new amounts equals the revenue schedule amount.
- Automatically: When you choose to "Automatically distribute all revenue using a date range', you will specify Recognition Start and Recognition End dates so that Zuora will automatically distribute the revenue evenly over each day of the date range using the daily recognition over time rule. The default transaction date rule is set to "recognize revenue over the recognition term regardless of when the transaction occurs" and the default rounding rule is set to round trailing. See Components and Configuration Options for more information on rule descriptions.
- Specific recognition date: Distribute a fixed amount or percentage of the total amount on the specified recognition date. This is a good option for project or milestone-based revenue recognition, where you can recognize revenue upon approval of a completed phase in a service implementation project.
When generating revenue recognition reports for any given period, the last revenue distribution method used will become the default method at the time the report is generated. For example if manual revenue distribution was last used then subsequent revenue recognition reports will not apportion unassigned revenue automatically by date and reports with open accounting periods will show gaps until the revenue is manually assigned.
Access the Distribute Revenue Page
From the revenue schedule, click distribute revenue located at the top right. See Access Revenue Schedules for options on how to access a revenue schedule.
From the charge revenue summary, click distribute under the Action column. See Charge Revenue Summary for information on how to access a revenue schedule.
- Make your distribution changes.
- Specify the revenue event type and write a note about the change.
- Click distribute revenue when you are done. The revenue schedule appears. An audit trail of the distribution change is recorded in the Revenue Events table.
See the section that follows for a description of fields.
Revenue Distribution Field Descriptions
Basic Information Fields
In addition to information about the customer and subscription, the following fields are displayed as basic information:
|Revenue Schedule Amount||The amount of revenue that you choose to recognize.
Once you create a revenue schedule, you cannot change the revenue schedule amount. To adjust the amount, create another revenue schedule with a positive or negative amount that you would like to modify.
|Reference ID||The ID is used to link a custom unlimited revenue schedule to an external transaction or entity.|
|Revenue Event Type||
Specify the revenue event type that best describes the action.
The following Zuora-defined revenue event types are supported:
If both the Invoice Settlement and Revenue features were enabled on your tenant prior to Zuora Release 230 (R230), August 2018, Zuora will create the credit memo cancelled or debit memo cancelled event type automatically when you cancel a posted credit memo or debit memo.
Additional information about the distribution.
Limit: 2,000 characters
Revenue Distribution Fields
|How do you want to distribute revenue?||Required. Select one of the following from the drop-down list:
For example, on completion of phase II of a 3-phased service implementation, an event is triggered from an external system. You can distribute a specified amount as recognized revenue in Zuora. If the revenue amount is $2,000 and the undistributed amount is $500, the amount recognized is calculated based on the distribution option you choose.
Distribution options are:
For this option, the default transaction date rule is set to "recognize revenue over the recognition term regardless of when the transaction occurs" and the default rounding rule is set to round trailing.
|Accounting Period||Open accounting periods available for distributing revenue amounts. The accounting period in which the subscription was activated is displayed by default.
Click Show previous accounting periods or Show next accounting periods to enter revenue amounts in other accounting periods.
|Existing Amount||When creating a revenue schedule, only the Open-ended period is populated with the Revenue Schedule Amount.
When redistributing revenue, this column represents the last saved revenue amount.
|New Amount||As distribute revenue amounts into accounting periods, this amount is subtracted from the Open-ended amount.
Enter the revenue amount for each accounting period. As you distribute revenue amounts into accounting periods, these amounts are subtracted from the Open-ended amount.
|Difference||The difference between the Existing Amount and the New Amount. As you distribute revenue amounts into accounting periods, a negative amount for the Open-ended period show how much revenue has been distributed (removed from Open-ended).|
Distribute Revenue from the Open-Ended Accounting Period into Newly-Created Accounting Periods
When you distribute revenue across a date range that does not have an accounting period defined, the revenue is placed in the Open-Ended accounting period. Once you create an accounting period, you can move revenue out of the Open-Ended accounting period into the accounting period you just created.
Navigate to Finance > Accounting Periods and click Distribute revenue from Open-Ended accounting period on the right-side pane under the Action section.
Any revenue in the Open-Ended accounting period that should be recognized in the new accounting period is distributed automatically. This operation does not affect revenue schedules from which you have manually distributed revenue, even if the revenue schedule still has remaining undistributed revenue. The remaining revenue must be distributed manually.