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Manually Create Revenue Schedules for Subscription Charges


Manually Create Revenue Schedules for Subscription Charges

You must manually create a revenue schedule if a custom revenue recognition rule was applied to a subscription charge. This article explains how to manually create a revenue schedule based on the custom recognition rule.

About Manually Created Revenue Schedules

You must manually create a revenue schedule for subscription charges based on a custom unlimited rule. With a manually created revenue schedule, you must:

  • Specify an initial revenue schedule amount.
  • Manually distribute revenue amounts.

Once you create a revenue schedule, you cannot change the revenue schedule amount.

See Revenue Rule Models for more information about custom unlimited rule models. See Revenue Schedules for conceptual information on revenue schedules.

How to Manually Create a Revenue Schedule

You can manually create a revenue schedule on a charge associated with a custom rule from the subscription. You can manually create a revenue schedule at any time after the subscription charge becomes active; for example, upon the contract effective date.

Create a Revenue Schedule

The following navigation paths lead you to manually create a revenue schedule:

  • Revenue Workbench
  • Subscription Charge
  • Charge Revenue Summary

Navigate to Revenue Workbench to Create a Revenue Schedule

Navigation: Click Finance > Revenue Workbench.

The Revenue Workbench manages the creation of revenue schedules and undistributed revenue on subscription charges. On the subscription charge that requires a revenue schedule to be created, click create revenue schedule in the Revenue Schedules column.

Navigate to the Subscription to Create a Revenue Schedule

Navigation: Click the Subscriptions > Subscriptions tab, and select the subscription from the list.

On the subscription page, find the charge and click Create under the Revenue column.

Navigate to the Charge Revenue Summary to Create a Revenue Schedule

If you have already created a revenue schedule for a subscription charge that uses a custom unlimited recognition rule, you can create more revenue schedules for the subscription charge from its Charge Revenue Summary page.

Navigation: Click Finance > Revenue Workbench. Click view revenue under the subscription charge for which you want to create a revenue schedule. The Charge Revenue Summary is displayed. In the top right corner, click create revenue schedule.

Complete the Information for Revenue Schedule

  1. Define the Revenue Schedule Date and the Revenue Schedule Amount.
  2. Distribute revenue amounts into accounting periods.
    • Enter the revenue amount to distribute in account periods under the New Amount column. 
    • Any remaining undistributed amount is left in the Open-ended (undistributed) period.

Create Revenue Schedule Field Descriptions 

Basic Information

Field Description
Revenue Schedule Date Required. The effective date of the revenue schedule. For example, the revenue schedule date for bookings-based revenue recognition is typically set to the order date or contract date.
Revenue Schedule Amount Required. The amount of revenue that you choose to recognize.

Once you create a revenue schedule, you cannot change the revenue schedule amount.

You must create another revenue schedule to adjust the revenue schedule amount. This adjusted amount is the difference between the incorrect amount and correct amount. 

Reference ID The reference ID associated with the revenue schedule. This optional ID is used to link the revenue schedule to an external transaction or entity.

Limit: 60 characters

Additional Fields

Optional fields and custom fields. Click to expand.

Field Description
Accounting Codes Use Accounting Codes from the Subscription Charge: Select this option to keep the default accounting codes that were defined on the charge. The default accounting codes are displayed.

Define separate Accounting Codes: Select this option to associate another set of accounting codes to this charge. When you select this option, select accounting codes for Recognized Revenue and for Deferred Revenue.

Notes Additional information about the revenue schedule.

Limit: 2,000 characters

Revenue Event Type Specify the revenue event that best describes the action.

Default: Revenue Distributed

See Revenue Events for more information the available types and how to create customized event types.

Revenue Distribution

Field Description
How do you want to distribute revenue? Required. Select one of the following from the drop-down list:
  • Manually distribute revenue across accounting periods: Choose this option to manually enter the amount of revenue to distribute into each open accounting period.
  • Automatically distribute all revenue using a date range: Choose this option to automatically to distribute revenue based on the specified recognition start and end date.  For example, this option may a good choice for revenue may need to be delayed by a specified period of time.
  • Distribute revenue on a specific date: Choose this option to distribute an amount of revenue on a specified recognition date.

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:

  • Fixed amount. Enter a specific amount, such as $666 of the $2,000. 
  • % of the total. Enter the percentage of the total revenue to distribute, such as 75% of $2,000. 
  • % of undistributed. Enter the percentage of undistributed revenue to distribute, such as 50% of $500.00. 

​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).