Skip to main content

Release revenue based on events for amended charge segments

Zuora

Release revenue based on events for amended charge segments

Zuora Billing - RevPro Integration is in Limited Availability

In RevPro, there is an option to release revenue based on events. For example, you can upload revenue events to release the revenue for a charge segment (SO line) based on the specified percentage or quantity. When the charge segment amendment occurs, a new charge segment might be created. In this case, RevPro can automatically release revenue for the new charge segment according to the release percentage of the previous charge segment.

Note: Revenue for the amended charge segment can be automatically released only when the event to release revenue for the original charge segment is of one of the following types:

  • Percentage based revenue event
    Revenue is released based on the percentage that is specified in the uploaded event.

  • Quantify based revenue event
    Revenue is released based on the quantity that is specified in the uploaded event.

The most important thing to release revenue for the amended segment is to determine the release percentage for the new charge segment.

  • If the revenue of the previous charge segment is released based on percentage, the same percentage will be applied to the new charge segment.

  • If the revenue of the previous charge segment is released based on quantity, the release percentage to be applied to the new charge segment is calculated as follows. If the calculated percentage is greater than 100%, 100% will be applied.

    Quantity of previous charge segment * Release percentage of previous charge segment / Quantity of the new charge segment

Examples are provided in the following sections to help you understand how to determine the release percentage in the two scenarios.

Revenue release based on percentage

In this scenario, a subscription is created for 12 months with the following details. According to the event setup and POB template definition in RevPro, the revenue event for this charge segment is based on percentage.

Subscription # Subscription Version Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date
S-00001 1 C-00001 1 10 12000 01-Jan-2019 31-Dec-2019

After the revenue event is uploaded and processed in RevPro, 50% of the revenue is released on this charge segment.

Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date Released Percentage Released Revenue
C-00001 1 10 12000 01-Jan-2019 31-Dec-2019 50% 6000

In the Mar-19 period, an amendment occurs to increase the quantity from 10 to 15. The previous charge segment will be updated and a new charge segment is created as follows:

Subscription # Subscription Version Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date
S-00001 2 C-00001 1 10 2000 01-Jan-2019 28-Feb-2019
S-00001 2 C-00001 2 15 15000 01-Mar-2019 31-Dec-2019

The release percentage of the charge segment 1 (50%) will be applied to the charge segment 2. The released revenue for the two charge segments are as follows:

Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date Released Percentage Released Revenue
C-00001 1 10 2000 01-Jan-2019 28-Feb-2019 50% 1000
C-00001 2 15 15000 01-Mar-2019 31-Dec-2019 50% 7500

Revenue release based on quantity

In this scenario, a subscription is created for 12 months with the following details. According to the event setup and POB template definition in RevPro, the revenue event for this charge segment is based on quantity.

Subscription # Subscription Version Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date
S-00001 1 C-00001 1 10 12000 01-Jan-2019 31-Dec-2019

After the revenue event is uploaded and processed in RevPro, the revenue is released for the quantity of 10 on this charge segment. The total quantity of charge segment 1 is 10, so the release percentage for charge segment 1 is 100%.

Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date Released Percentage Released Revenue
C-00001 1 10 12000 01-Jan-2019 31-Dec-2019 100% 12000

In the Mar-2019 period, an amendment occurs to increase the quantity from 10 to 15 for the original charge segment. The original charge segment will be updated and a new charge segment is created as follows:

Subscription # Subscription Version Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date
S-00001 2 C-00001 1 10 2000 01-Jan-2019 28-Feb-2019
S-00001 2 C-00001 2 15 15000 01-Mar-2019 31-Dec-2019

The release percentage for charge segment 2 can be calculated based on charge segment 1:

Release Percentage = Quantity of previous charge segment * Release percentage of previous charge segment / Quantity of the new charge segment

                                 = 10 * 100% / 15 = 66.67%

Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date Released Quantity Released Percentage Released Revenue
C-00001 1 10 2000 01-Jan-2019 28-Feb-2019 10 100% 2000
C-00001 2 15 15000 01-Mar-2019 31-Dec-2019   66.67% 10000

In the Jul-2019 period, another amendment occurs to decrease the quantity from 15 to 5. The previous charge segment will be updated and a new charge segment is created as follows:

Subscription # Subscription Version Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date
S-00001 2 C-00001 1 10 2000 01-Jan-2019 28-Feb-2019
S-00001 2 C-00001 2 15 6000 01-Mar-2019 30-Jun-2019
S-00001 2 C-00001 3 5 3000 01-Jul-2019 31-Dec-2019

The release percentage for charge segment 3 can be calculated based on charge segment 2:

Release Percentage = Quantity of previous charge segment * Release percentage of previous charge segment / Quantity of the new charge segment

                                 = 15 * 66.67% / 5 = 200.01%

Because 200.01% is greater than 100%, the release percentage for charge segment 3 will be 100%. The released revenue for the three charge segments are as follows:

Rate Plan Charge # Rate Plan Charge Segment Quantity Booked Amount Start Date End Date Released Quantity Released Percentage Released Revenue
C-00001 1 10 2000 01-Jan-2019 28-Feb-2019 10 100% 2000
C-00001 2 15 6000 01-Mar-2019 30-Jun-2019   66.67% 4000
C-00001 3 5 3000 01-Jul-2019 31-Dec-2019   100% 3000