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Update Revenue End Date for evergreen subscriptions

Zuora

Update Revenue End Date for evergreen subscriptions

Zuora Billing - RevPro Integration is in Limited Availability

In Zuora Billing, you can create evergreen subscriptions, which have no revenue end dates. A termed subscription can also be configured to automatically change to an evergreen subscription when it is renewed. To support both scenarios, RevPro can update the end date and the booked amount for the evergreen subscriptions based on the invoices that are collected for the subscription.

Overview

There are two scenarios where evergreen subscriptions are created and collected in RevPro. One scenario is that the subscription is initially created as an evergreen subscription. The other scenario is that a termed subscription is changed to an evergreen subscription.

When an evergreen subscription is initially created in Zuora Billing and then collected by RevPro, the end date of the SO line is empty and the booked amount is zero. To recognize revenue for evergreen subscriptions, the end date and booked amount will be incrementally updated based on the invoices that are collected for the subscription in the following way:

  • The revenue end date is updated to the latest end date of the invoices that are collected.

  • The booked amount is the sum of all the collected invoices.

When a termed subscription is changed to the evergreen subscription, the following actions are performed in RevPro:

  • Update the original SO line to change the booked amount and end date based on the collected invoice.

  • Create a new SO line for the evergreen subscription starting from the amendment effective date. The booked amount for this new SO line is zero.

  • Update the booked amount and end date of the new SO line based on the upcoming invoices.

Examples are provided to explain how RevPro will update the SO line in both scenarios.

Initial evergreen subscription

In this example, the subscription is created as an evergreen subscription in Zuora Billing. After data collection is completed in RevPro, the following SO line will be created for this evergreen subscription. 

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Booked Amount Start Date End Date SO Lind Id
SO S-0001 1 C-0001 1 1 0 01-Jan-2019   C-0001.1

This evergreen subscription is billed annually. The following invoice is collected in RevPro for the first year.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Invoice Amount Start Date End Date SO Lind Id Invoice Line Id
INV S-0001 1 C-0001 1 1 1200 01-Jan-2019 31-Dec-2019 C-0001.1 INV1.1

RevPro will update the booked amount and end date of the evergreen subscription based on the INV1.1 invoice as follows:

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Booked Amount Start Date End Date SO Lind Id
SO S-0001 1 C-0001 2 1 1200 01-Jan-2019 31-Dec-2019 C-0001.1

Then, another invoice is collected for the second year.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Invoice Amount Start Date End Date SO Line Id Invoice Line Id
INV S-0001 1 C-0001 1 1 1200 01-Jan-2020 31-Dec-2020 C-0001.1

INV2.1

The end date of the subscription will be updated to the latest end date of the invoices. The booked amount will be the sum of all the billed amount.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Booked Amount Start Date End Date SO Lind Id
SO S-0001 1 C-0001 3 1 2400 01-Jan-2019 31-Dec-2020 C-0001.1

Termed subscription changed to evergreen

It is a common use case in Zuora Billing that a termed subscription is automatically changed to the evergreen subscription when it is renewed. The following example explains how RevPro updates the original SO line, which is created for the termed subscription and how the new SO line is created and updated for the evergreen subscription.

In this example, a termed subscription is created for 12 months in Zuora Billing and then collected in RevPro. The following SO line is created for the original termed subscription.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Booked Amount Start Date End Date SO Lind Id
SO S-0001 1 C-0001 1 1 1200 01-Jan-2019 31-Dec-2019 C-0001.1

Billing occurs on a quarterly basis. The invoice for the first quarter has been collected in RevPro.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Invoice Amount Start Date End Date SO Lind Id Invoice Line Id
INV S-0001 1 C-0001 1 1 300 01-Jan-2019 31-Mar-2019 C-0001.1

INV1.1

In the Apr-2019 period, the termed subscription is changed to an evergreen subscription. The original SO line will be updated based on the INV1.1 invoice as follows:

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Booked Amount Start Date End Date SO Lind Id
SO S-0001 1 C-0001 2 1 300 01-Jan-2019 31-Mar-2019 C-0001.1

Meanwhile, a new SO line is created for the evergreen subscription starting from the Apr-2019 period.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Booked Amount Start Date End Date SO Lind Id
SO S-0001 1 C-0001 2 2   01-Apr-2019   C-0001.1

The evergreen subscription is billed on a quarterly basis. The following invoices are collected and associated with the original SO line in RevPro in a single batch.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Invoice Amount Start Date End Date SO Lind Id
INV S-0001 1 C-0001 2 2 300 01-Apr-2019 30-Jun-2019 C-0001.1
INV S-0001 1 C-0001 2 2 300 01-Jul-2019 30-Sep-2019 C-0001.1
INV S-0001 1 C-0001 2 2 300 01-Oct-2019 31-Dec-2019 C-0001.1
INV S-0001 1 C-0001 2 2 300 01-Jan-2020 31-Mar-2020 C-0001.1

After data collection is completed, the end date of the new SO line will be updated to be the latest end date of the invoice. The booked amount is updated to the sum of the invoice amount.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Booked Amount Start Date End Date SO Lind Id
SO S-0001 1 C-0001 3 2 1200 01-Apr-2019 31-Mar-2020 C-0001.1

In the Apr-2020 period, another invoice is collected in RevPro and associated with the original SO line.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Invoice Amount Start Date End Date SO Lind Id
INV S-0001 1 C-0001 2 2 300 01-Apr-2020 30-Jun-2020 C-0001.1

The end date of the invoice is later than the end date of the evergreen SO line. RevPro will update the end date of the evergreen SO line to be the invoice end date. The booked amount of the evergreen SO line will also be incrementally updated.

Transaction Type Subscription # Subscription Version Charge # RPC Version RPC Segment Booked Amount Start Date End Date SO Lind Id
SO S-0001 1 C-0001 4 2 1500 01-Apr-2019 30-Jun-2020 C-0001.1