Perform Period End Close Process

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Perform Period End Close Process

After you finished all the prerequisites, you can perform the period-end close process to close the period. This article introduces the mandatory programs, period-end reports, and the tasks you need to do to close the period.

Mandatory Programs

This table lists the types, names, and description of the mandatory programs to be run before finally closing the period. You need to run these programs before closing the period. See the Tasks of Running Mandatory Programs and Period End Reports section below.

Activity Type Activity Name Description
Report RevPro 3.0 Netting Process The purpose of this program is to calculate the CA/CL balance and net position of every RC in the application for a given period and create the appropriate accounting entries to ensure the correct account position for each RC. This is mandatory program when closing the period. However, it is optional when a new period is opened after closing the previous period.
Program RevPro 3.0 LT/ST Process The purpose of this program is to create the LT/ST reclass journal entry for the current open period.
Program RevPro 3.0 Accounting Transfer Master Program The purpose of this program is to post the unposted accounting entries to the GL. This is required to transfer both the netting entries and the ST/LT reclass entry to the GL. 
Program RevPro 3.0 Sweep Unposted Schedules This program is to move the unposted schedules which are placed on hold to next period. It ensures that the schedules, when posted, will have the period in which it needs to be posted and GL date in the same period.  
Program RevPro 3.0 Current Period Post Summarize Data

The purpose of this program is to summarize the reporting data based on the attributes defined in the Disclosure Aggregation setup.

The purpose for this second summarization level is to handle high volume data to ensure the reports are immediately available and feed the summary dashboard UI.

Program RevPro 3.0 Reporting Current Period Close This program need to be submitted as the LAST step before finally closing the period in Zuora RevPro. This program moves the waterfall data of the current open period to history. This program should not be submitted during the month as it may cause data corruption.

Period End Reports

The following table shows the types, names, and description of the period end reports to be run to validate the data before closing. Note that all the Rollforward reports use historical exchange rates for functional/base and reporting currencies. You need to run these reports before closing the period. See the Tasks of Running Mandatory Programs and Period End Reports section below.

Activity Type Activity Name Description
Report RC Rollforward Report This report displays the beginning and ending balances of the Contract Liability and Adjustment Liability accounts for a given period.  The report is used to reconcile Contract Liability/Adjustment Liability and Contract Asset account balances with the GL.
Report Unbill RollForward Report This report displays the beginning and ending balances of the Unbilled Receivables account for a given period. The report is used to reconcile the Unbilled Receivables account balance with the GL.
Report Cost Capitalized Rollforward Report This report displays the beginning and ending balances for the Capitalized cost accounts (both Standard and other cost types) for a given period. The report used to reconcile Capitalized Cost account balances with the GL.
Report VC Rollforward Report This report displays the beginning and end balances for the Variable Consideration Contract Liability adjustment accounts (VC Balance sheet accounts) for a given period.   The report is used to reconcile the account balances with the GL.
Report Billing Rollforward Report Report showing Invoice level details of Contract Liability account balances.
Report Waterfall Report This report is used to reconcile current period revenue/cist and includes rollout of unsatisfied and partially satisfied performance obligations (both scheduled and unscheduled (revenue only)). Ability to separate out Revenue types and cost types for analysis.
Report Revenue Insight Report Report used to reconcile PTD, QTD, YTD revenue with the GL.
Report Cost Insight Report Report used to reconcile PTD, QTD, YTD cost with the GL.
Report VC Insight Report Report used to reconcile PTD, QTD, YTD variable consideration revenue adjustments with the GL.
Report Trial Balance Report This report translates account balances by account Type based on Balance Sheet or Income Statement (P&L) definition.  Balance sheet accounts are translated using period-end rates and P&L account are translated using period average rates.
Report Unbill FX Report This report is used to understand impact of revenue recognition reversals on previously unbilled transactions for possible FX gain/loss adjustments.
Report FX Waterfall Report This report is similar to the waterfall report, but makes exchange rate adjustments for functional amounts for unbilled to use the period average rate.  For reporting amounts, it uses the period average rates.  

Tasks of Closing a Period

As part of the product installation, the recommended mandatory programs are seeded in the Close template, which needs to be run as part of the close process. You can also add any additional required program steps and manual tasks to the template based on their unique requirements.

The seeded mandatory programs to be run after initiating the period close process.

Task 1: Initiate the Period Close Process

After performing the validation checks on the Prerequisite Tasks, you can initiate the Period Close process. In order to initiate the Period Close process, assuming a period close template has been defined and associated with the Book.

  1. Navigate to Accounting > Period Open/Close.

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  2. Select the book, which needs to be closed, and right-click to select Initiate Period Close.

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Task 2: Run RevPro3.0 Netting Process

The purpose of the RevPro3.0 Netting Process program is to calculate the CA/CL balance and net position of every RC in the application for a given period and to create the appropriate accounting entries to ensure the correct account position for each RC.

Configurations on the Create Line Level Acct parameter in this program:

  • It is recommended to set the parameter to Yes for customers where they have configured the system to create netting accounting entries at the transaction line level. If it is not set, the entries will be created as a manual journal entry at the book level.
  • This parameter is recommended to be set as Yes when closing the period and when you would like to create netting accounting entries once in a month just before final closing.
  • When this parameter is set to Yes and if the entries are posted, the system will reverse the posted entries and rebook the same. Otherwise, the entries are updated with the new amounts.
  • After closing the existing period and upon opening new period, it is not necessary to set the parameter as Yes and run the netting process unless customer would like to create accounting entries.
  • This parameter helps with creating the entries at the time of period-end closing.

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Task 2: Perform LT/ST Process 

The purpose of the RevPro 3.0 LT/ST Process program is to create the LT/ST reclass journal entry for the current open period.

The program calculates the LT/ST balances and depending on the net CA/CL position of the RC, creates the LT/ST schedules between Long Term & Short Term Contract Asset when the RC is in a net CA position and between Long Term & Short Term Contract Liability when the RC is in a net CL position.

Upon creation of the schedules, the program creates the Manual Journal Entry (MJE) for transfer to the GL.

Task 3: Run RevPro3.0 Accounting Transfer Master

The purpose of the RevPro3.0 Accounting Transfer Master program is to post the unposted accounting entries to the GL. This is required to transfer both the netting entries and ST/LT reclass entry to the GL.

It is recommended to run the transfer accounting one final time before the period is finally closed.

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Task 4: Perform Sweep Process

The purpose of the RevPro3.0 Sweep Unposted Schedules program is to move the schedules which are on transfer hold to the next period. This ensures that schedules, when posted, will the period in which is supposed to be posted period and GL date in the same period and appear correctly throughout the application.

This program cannot be submitting manually from the Schedule Job. This needs to be initiated from the Period Close process UI.

Task 5: Run RevPro3.0 Current Period Post Summarize Data 

The purpose of the RevPro3.0 Current Period Post Summarize Data program is to summarize the reporting data based on the attributes defined in the Disclosure Aggregation setup.

The purpose for this second summarization level is to handle high volume data to ensure the reports are immediately available as well as feed the summary dashboard UI.

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Task 6: Validate Period End Reports

Before the final step is initiated, which is the RevPro3.0 Reporting Current Period Close, you need to validate the period end reports. The recommended reports to be used for validation are as follows:

Balance Sheet Reports

RC Rollforward Report

This report displays the beginning and ending balance of Contract Liability and Adjustment Liability accounts for a given period. The report is used to reconcile Contract Liability and Contract Asset account balances with the GL.

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Unbill RollForward Report

This report displays the beginning and ending balances of the Unbilled Receivables account for a given period. The report is used to reconcile the Unbilled Receivables account balance with the GL. 

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Cost Capitalized RollForward Report

This report displays the beginning and ending balances for the Capitalized cost accounts (both Standard and other cost types) for a given period. The report is used to reconcile the Capitalized Cost account balances with the GL.

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VC Rollforward Report

This report displays the beginning and ending balances of the Unbilled Receivables account for a given period. The report is used to reconcile the Unbilled Receivables account balance with the GL. 

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Billing RollForward Report (Invoice Based RollForward Report)

Similar to the RC Rollforward report, this report shows Invoice level details of Contract Liability account balances.

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Income Statements/P&L Reports

Waterfall Report

This report is used to reconcile current period revenue/cost and includes the rollout of unsatisfied and partially satisfied performance obligations (both scheduled and unscheduled (revenue only)). Ability to separate out Revenue types and cost types for analysis.

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Insight Reports

The Insight Reports provide information for PTD, QTD, YTD and cumulative activity for Income Statement Accounts and are categorized by type:

  • Revenue Insight Report - Report used to reconcile PTD, QTD, YTD revenue with the GL.

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  • Cost Insight Report - Report used to reconcile PTD, QTD, YTD cost with the GL.

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  • VC Insight Report - Report used to reconcile PTD, QTD, YTD variable consideration revenue adjustments with the GL.

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FX Month End Reports

FX Month-end reports are used to translate activity and balances into reporting currency using the appropriate rates. By default, RevPro’s reporting currency amounts use historical rates. 

Trial Balance Report

This report translates account balances by account Type based on Balance Sheet or Income Statement (P&L) definition.  Balance sheet accounts are translated using period-end rates and P&L account are translated using period average rates.

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Unbilled FX Report

This report is used to understand the impact of revenue recognition reversals on previously unbilled transactions for possible FX gain/loss adjustments.

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FX Waterfall Report

Similar to the Waterfall report, this report shows current period revenue and cost activity by type with the rollout of scheduled performance obligations.

It calculates functional currency amounts as follows: 

  • For all  Balance sheet accounts except for Unbilled Receivables, the report uses the historical rates associated with each transaction.
  • For all the P&L accounts except for Unbilled Revenue, the report uses the historical rates associated with each transaction.
  • For Unbilled Receivables and Revenue (both Balance Sheet and P&L accounts), the report uses the period average rate for the current open period.

It calculates reporting currency amounts are calculated as follow:

  • For all the Balance sheet accounts, the report uses the period-e end rate for the current open period.
  • For all the P&L accounts, the report uses the period average rate for the current open period.

This report is scheduled to be released in Q1-17 patch.

Task 7: Run the Final RevPro3.0 Reporting Current Period Close Program

Upon completing all the period close activities, run the final program, RevPro3.0 Reporting Current Period Close. This program moves the waterfall data of the current period to the history.

Upon successful completion of the program, the period can be officially closed and the next period can be opened.

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