Grouping Revenue Contracts

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Grouping Revenue Contracts

Companies enter into contractual agreements with their customers to sell goods or services. These contractual agreements are referred to as revenue contracts with customers. Companies keep and manage information about these revenue contracts in their ERP systems. Companies often use their ERP system to track sales orders along with related documents such as invoices and credit memos. 

Zuora RevPro always views and processes revenue contracts as group of one or more sales order lines. Each sales order line is referred to as a transaction. Companies always input their source data from their source system as lines of transaction data into RevPro for revenue recognition processing.

Time Based Grouping

A time-based grouping criterion is often defined for a grouping rule when the grouping criteria
are generic. For example, the grouping criteria may be the Customer Name (or Customer ID)
with a time-based grouping criterion such as 30 days (from the initial sales order date). Most
companies view time-based grouping criteria as a period of days such 30, 60 or 90 days. 

There are three types of duration that can be set for time based grouping. They are:

  • Day(s)
  • RC Creation Period  
  • RC Creation Qtr

How to Create an RC Grouping Template and RC Grouping Rule

The steps to first create an RC grouping template and then create an RC grouping rule with defined grouping criteria is given below:

  1. Navigate to Policies > RC Grouping Template.

New Grouping Template.png

  1. Click New Template and enter the template details.
  2. Enter the RC grouping template name.
  3. Select the effective date in the Start Date field.
  4. Enter a description for the template in Template Description.
  5. Check the Enabled checkbox to enable the template. 
  6. Click Save.
  7. In the Grouping Rules pane, click + to create a new rule.
  8. Enter the rule name and click the Actions button.
  9. In the Edit Grouping Criteria screen, from the Group By Available Fields, select the criteria and move it to the Selected Fields.

For specifying Time Based Grouping do the following steps:

Edit Grouping Crieteria1.png

  1. Select the Duration Type from the drop down. If the Duration Type is Day(s), then you have to enter the Base Date and Duration fields.
  2. Select the Base Date from the drop down. Based on this date only the time based grouping is performed.
  3. Enter the number of days in Duration.

For Time based grouping, ensure that you disable the Retain SO check box in Setups > Application Setups > Functionality tab. If this check box is enabled and even though you specify the Duration Type, RevPro ignores the time based grouping.

An RC Grouping Template created in Policies > RC Grouping Template, must be associated while creating or updating an Transaction Upload Template.

upload.png

Select the relevant RC Grouping Rule, which is the template created in the RC Grouping Template screen. Unfreeze the template to make these changes and then freeze the template. 

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