Manage Non-Subscription Items
The Unified Invoicing feature is generally available as of Zuora Billing Release 313, November 2021. New customers will have the feature enabled by default. If you are an existing customer and want to access to the feature, submit a request at Zuora Global Support for Unified Invoicing.
With the Unified Invoicing feature enabled, the Manage Non-Subscription Items setting is available on the Finance Settings page. You can use this finance setting to define the default accounting codes and revenue recognition rule for non-subscription invoice items.
Creating non-subscription invoices can have an impact on your accounting process. To precisely group non-subscription invoice items from the accounting perspective, you need to tailor accounting codes for non-subscription invoice items so that they can be mapped to the correct accounts in your GL system. You can view, edit, and create accounting codes for accounting purposes through the Manage Chart of Accounts setting. See Manage Chart of Accounts for more information.
When this setting is used
With the Unified Invoicing feature enabled, the accounting code and revenue recognition rule are used in the following order:
- The accounting code and revenue recognition rule configured in the product rate plan charge that is associated with the invoice.
- The accounting code and revenue recognition rule specified in the Create a standalone invoice API operation.
- The accounting code and revenue recognition rule configured in the Manage Non-Subscription Items setting.
In other words, this setting allows you to configure the default accounting codes and revenue recognition rules. These default values take effect only if no product rate plan charges are associated with non-subscription invoice items, and the accounting codes or revenue recognition rules are not specified in the Create a standalone invoice operation.
Configure accounting codes for non-subscription invoice items
Before you start configuring the accounting codes for non-subscription items, ensure that:
- You have set up at least one revenue recognition rule in the Manage Revenue Recognition Rules setting. See Manage Revenue Recognition Rules for more information.
- The accounting codes for non-subscription invoice items have been created. Check the existing accounting codes in the Manage Chart of Accounts setting.
Take the following steps to configure the default accounting codes and revenue recognition rules for non-subscription invoice items:
- Navigate to Finance Settings > Manage Non-Subscription Items in your Zuora tenant.
- Select a rule from the Revenue Recognition Rule dropdown list. The revenue recognition rules displayed in the dropdown list are the rules defined in the Manage Revenue Recognition Rules setting.
- Define how journal entries will be created when the invoice is posted and the revenue is recognized, which are similar to the Finance configuration of a product rate plan charge.
- In the Invoice Posted table, select the accounting codes in the Credit entry for Deferred Revenue and Sales Tax Payable, respectively. Note that the accounting code for Sales Tax Payable are used only if the tax code is not specified in Zuora.
- Select the respective accounting codes in the debit entry for Accounts Receivable. Note that this field cannot be blank and is enabled for IIS tenants.
- In the Revenue Recognized table, select the accounting code in the Credit entry for Recognized Revenue.
- Click save to save the configuration.
This section is only applicable if you have enabled Billing - Revenue Integration.
When accounting codes are missing on the billing documents (invoice, invoice item adjustment, credit memo, debit memo) integrated to Zuora Revenue, Zuora Revenue cannot generate correct accounting entries.
Use this section to set default accounting codes for each account type. The system will use these default values for integration when any document line items do not have accounting codes. For example, when you create a standalone invoice from a new charge, these default values will be automatically populated in the Revenue area on the Zuora UI.
To save the Manage Non-Subscription Items, you must select the Revenue Accounts even if you have selected Yes in Allow blank Accounting Codes rule in Configure Accounting Rules.