Pre-summarization

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Pre-summarization

Pre-summarization can be performed by Customers to view the revenue released for a particular period and also view the details of the unreleased revenue. All the details about released and unreleased revenue can be viewed and based on the pre-summarization. The Customer can analyze and come up with the analysis about the revenue that is going to be released. This document lists the activities that has to be performed and based on these calculations, the released and unreleased revenue related overall details are displayed.

In this document, month end activities are categorized into 3 period close sections along with a section for period open.  They are listed in the following sections.

Mandatory Reports     

Run the following Period End Reports to validate the data before closing the current period:

Activity Type

Activity Name (Note all Rollforward reports use historical exchange rates for functional/base and reporting currencies)

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 is 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 is used to reconcile PTD, QTD, YTD revenue with the GL.

Report

Cost Insight Report

Report is used to reconcile PTD, QTD, YTD cost with the GL.

Report

VC Insight Report

Report is 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 the 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. 

 

The following are the mandatory programs that has to run before finally closing the period:

Activity Type

Activity Name

Description

Program

RevPro3.0 Sweep Un posted Schedules

This program is to move the un posted schedules that are placed on hold to next period.  It ensures that schedules, when posted, will have period in which it need to be posted and GL date in the same period. 

Program

RevPro3.0 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 as well as feed the summary dashboard UI.

Report

RevPro3.0 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 a mandatory program when closing the period, however, it is optional when 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 ST/LT reclass entry to the GL.

Program

RevPro3.0 Reporting Current Period Close

This program need to be submitted as the LAST step before finally closing the period in 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.


 Perform the Period Open activities when new period is opened in RevPro:

Activity Type

Activity Name

Description

Program

RevPro3.0 Netting Process

This program is to calculate the CA/CL balance and net position for each RC in the new current open period by carrying forward the prior period ending CA/CL balance and net position to the new current open period.

Program

RevPro3.0 Reporting Period Open

This program is to carry forward all balance sheet account balances at the account level from the prior period to the new current open period to reflect the correct amounts on the report(s).

Manual Task

Review SSP’s

This is a reminder to the user to review and validate SSP’s both for values and effective dates. Any updates should be made PRIOR to pulling in any transactions in the new current open period.

 

Prerequisite activities to be performed before initiating period end close process

  1. Run the Line Staging Report.

This report provides visibility to any unprocessed or error records that are available in the transaction stage table to ensure they are collected and processed. Select the report Line Staging Report from SOX & Audit category. Key in the required parameters to run the report. Validate the data and fix any records with errors using either the Data Interface UI or by re-uploading/resending the previously failed records that have been corrected. 

  1. Run the data collection program to process any remaining transactions in the transaction staging table. 

Select the job RevPro 3.0 Data Collection Master from the drop down to launch the job or Create a new RC Batch from the RC Batch screen and submit by selecting Collect Data.

Wait for the job to complete and verify if there are any failed records in the transaction stage table by running the Line Staging Report or from the UI by selecting the Inbound submenu under the Data Interface Menu. Repeat steps 1 and 2 as required.

  1. Check for any unprocessed Events staged in the Events stage table.

Run the Event Staging Report from the Transactions Report category. Review and validate the records in the report. If required, run the Event process program to process events.

  1. Check for any orphan transactions in the system by running the Orphan Transactions report.  

If required, fix orphan transactions by linking orphan transactions to existing RC’s or creating a new RC. Run Orphan Transactions report under the SOX and Audit Report Category

  1. Run the SSP Exception report to check for any transactions where RevPro was unable to derive SSP and, therefore, allocations were not performed.

To correct, users can create/upload new SSPs and/or manually update SSP for specific transactions and re-allocate the affected RCs. Run the SSP Exception report available under SOX & Audit Report category.

  1. Review all RC’s in RevPro where approval rules have been applied and revenue is being held due to pending approvals.

Run the Approvals report to display ALL pending approvals and who needs to approve them. To approve RC(s): Navigate to the Workbench menu, and select the Approvals submenu.  This will display all the RC(s) pending approval by the user. RC(s) can be approved at the screen by selecting the RC(s) to be approved or drilling into each RC and approving there. All approvals require an approval comment.

  1. Review all RC’s where holds have been applied and revenue is being deferred pending release of the hold. 

Run the RC Hold/Release Report from the SOX and Audit Report Category to see all unreleased holds. To release holds: Navigate to the Workbench menu and select the Holds submenu option. All pending holds (RC, POB and line level) are displayed. Users can release holds from this screen or drill into the RC and release the hold. The release of all holds requires comments and a release reason.

  1. Run the POB Immediate Release Master to release any POB(s) that has expired.
  2. Run the Event Collection Process to process any pending release events.

This is needed to be run at the end of the review process, due to the fact, that there may be RC(s) that have been approved and/or holds released for which events can now be processed. After submitting the program, the program will process the pending events. After completion of the program, verify the Events Report for any unprocessed events in the events staging table.  

  1. Review all unreleased POB(s) to validate that they do not require manual release. Run the Unreleased POB Report from the Transactions Report Category to review all unreleased POB(s)

For any POB(s) that need to be manually released, go the Workbench menu, Revenue Contracts submenu to search and select the RC(s) with POBs to be manually released.  All manual releases require a comment and are tracked. Users may always want to run the POB(s) Released Report from the Transactions Report Category to validate all POB(s) that were manually released and ensure that they do not need to be deferred.

  1. Perform Transfer Accounting before initiating the period close to ensure there are no unposted schedules. This will exclude any transactions with transfer holds.  

Mandatory programs to be run before finally closing the period. After performing the validation checks on the pre-requisite steps as detailed above, users 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, click on the Period Open/Close submenu under the Accounting menu. Upon selecting the Period Open/Close, select the book which need to be closed and right click to choose “Initiate Period Close.”

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

Run the following seeded mandatory programs after initiating the period close process:

  1. Sweep Process

The purpose of this program is to move the schedules that are on transfer hold to the next period. This ensures that schedules, when posted, the period in which it has  to be posted and GL date in the same period appearing correctly throughout the application.This program cannot be submitted manually from the Schedule Job. This need to be initiated from the Period Close process UI.

  1. Zuora 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 as well as feed the summary dashboard UI.

  1. Zuora RevPro3.0 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 program has the parameter Create Line Level Acct.   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 not set, 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, when customers would like to create netting accounting entries once in a month just before final closing. When set to Yes and if the entries are posted, system will reverse the posted entries and rebook the same, else, 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.      

  1. Perform LT/ST Process 

The purpose of this 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. 

  1. Zuora RevPro3.0 Accounting Transfer Master

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 ST/LT reclass entry to the GL. It is recommended to run the transfer accounting one final time before the period is finally closed.

  1. Before the final step is initiated, which is the RevPro3.0 Reporting Current Period Close, users need to validate the following period end reports.
    1. Balance Sheet Reports
      1. 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. 
      2. 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. 
      3. 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. 
      4. 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. 
      5. Billing RollForward Report (Invoice Based RollForward Report):  Similar to the RC Rollforward report, this report shows Invoice level details of Contract Liability account balances.
    2. Income Statements/P & L Reports
      1. Waterfall Report: This report is used to reconcile current period revenue/cost 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.
      2. Insight Reports: The Insight Reports provide information for PTD, QTD, YTD and cumulative activity for Income Statement Accounts and are categorized by type:
        1. Revenue Insight Report - Report is used to reconcile PTD, QTD, YTD revenue with the GL.              
        2. Cost Insight Report - Report is used to reconcile PTD, QTD, YTD cost with the GL.
        3. VC Insight Report - Report is used to reconcile PTD, QTD, YTD variable consideration revenue adjustments with the GL.
    3. 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. 
      1. 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.
      2. Unbilled FX Report: This report is used to understand impact of revenue recognition reversals on previously unbilled transactions for possible FX gain/loss adjustments.
      3. 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.

Zuora RevPro calculates the 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.

Zuora RevPro calculates the Reporting currency amounts as follows:

  • 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
  1. 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.

Period Open activities

There are certain period open activities that are performed when the new period is opened in RevPro. If the Period Open template is defined and enabled, upon closing the period, the system will display the Period Open activity template with the following tasks to be completed:

  1. Zuora RevPro 3.0 Netting Process

This program is to calculate the CA/CL balance and net position for each RC in the new current open period by carrying forward the prior period ending balance and net position to the new current open period.

  1. Zuora RevPro 3.0 Reporting Period Open Process

This program is to carry forward all balance sheet account balances at account level from the prior period to the new current open period to reflect the correct amounts on the report(s).

  1. Review SSP’s

This is a reminder to the user to review and validate SSP’s both for values and effective dates. Any updates should be made PRIOR to pulling in any transactions in the new current open period.  

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