Zuora RevPro overview

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Zuora RevPro overview

Revenue management is complicated. As a business expands internationally, changes its order-to-cash process, or launches new products, the complexity of revenue recognition multiplies.

Current revenue processes are often very manual, involving complicated spreadsheets or rigid ERP systems. Despite these challenges, the accuracy of revenue numbers is not something to take a risk on. 

That's why Zuora RevPro is built.

RevPro.png

Product characteristics

Zuora RevPro is the world's leading revenue automation solution. RevPro enables you to streamline revenue recognition as your business grows and meet current and future U.S. GAAP, including the new ASC 606 and IFRS 15 revenue standards.

RevPro is designed to automate revenue recognition for any event and any business model. It has the following characteristics.

Touchless revenue recognition

Unless there is an exception to handle, revenue recognition should be automated. That’s RevPro is designed to be flexible enough to understand any contract modifications and seamlessly apply tailored rules to recognize the revenue accurately. No manual intervention is needed.

Configurable policies

Every rule and setting in RevPro is configurable. RevPro is designed to be the most configurable revenue solution in the market so that any business can tailor RevPro to its own revenue management policies.

Delivering the foundations

1revenue.png  Revenue and deferred revenue

2calculation.png  SSP calculations & allocations

3reports.png  Reports designed for the new revenue standards

4authorization.png  Granular authorization controls

5multi-book.png  Multi-book accounting

Enabling advanced use cases

6contract_modification.png  Advanced contract modification framework

7variable.png  Advanced variable consideration analyzer

8advanced_ssp.png  Advanced SSP Analyzer

9advanced_calculation.png  Advanced calculations for COGS, sales commissions, rebates, and accruals

Highly configurable

check.png  Configure performance obligation groups 

check.png  Configure contract modification rules

check.png  Configure accounting policies  

check.png  Configure data augmentation 

check.png  Configure data validation rules

check.png  Configure cost allocation rules 

check.png  Configure audit trail settings 

check.png  Configure period close settings    

check.png  Configure UI layouts

Technical overview

The following diagram provides a high-level technical overview of revenue recognition in RevPro.

  • In the top level of the diagram, the rectangles represent the external systems that have data exchanges with RevPro.
  • In the middle level, the polygons in dark blue highlight the five steps to perform revenue recognition based on ASC 606.
  • In the bottom level, the rectangles in light green represent the data processing steps that RevPro can automatically perform based on the given rules that are set up during RevPro implementation phase.

revpro-technical-overview.pngBundle Explosion Create RC Grouping Template Performance Obligations Processing SSP Setup Variable Consideration Processing Cost Processing Reports Contract Modifications ForecastingRevenue release event

During the RevPro implementation phase, the RevPro business requirement document (BRD) is created based on the accounting policies and business needs of your company. The RevPro BRD documents all of the required setups in RevPro, which can be categorized into the following types:

  • System-related configuration 
    For example, accounting calendar, user roles and privileges, accounting types, and currencies.
  • Policy-related configuration
    For example, revenue contract grouping templates, POB assignment rules, contract modification rules, variable consideration rules, revenue events, revenue approvals, revenue holds, and forecast templates.

After the required setups are ready in RevPro, transaction data such as contracts and invoices can be manually uploaded to RevPro from the upstream systems by revenue users. After the input data are validated and loaded to RevPro staging tables, the data collection process begins in RevPro.

Based on the configured revenue contract grouping criteria, RevPro automatically groups the uploaded transaction lines into revenue contracts. Then, the configured POB assignment rules are applied to identify the performance obligations within each revenue contract. Before revenue allocation, RevPro can perform price adjustments for the revenue contract to determine the transaction price based on the configured variable consideration rules. Then, SSP values can be derived for all line items within the revenue contract that is eligible for allocation based on the assigned SSP hierarchy. Revenue allocation occurs based on the derived SSP values. After that, revenue can be released for each performance obligation either manually based on uploaded revenue events or automatically based on automated revenue actions. 

In the end, accounting journal entries can be created by RevPro and then transferred to your general ledger. A variety of reports can also be provided by the Reporting capability, which can facilitate the process to close an accounting period.

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