Configure accounting structure

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Configuring accounting structure is an important setup in Zuora Revenue. Based on the accounting structure, when accounting entries are created, Zuora Revenue can derive the appropriate account number to associate with transactions, which determines the success of further accounting transfer.

To configure the accounting structure in Zuora Revenue, the following tasks are involved:

Create account segments.
Create account types.
Map the segments to appropriate account types.

Create account segments

A segment is part of the business that has separate financial information and a separate management strategy. You can create account segments based on geography, the line of business, or department. The number of segments that you create determines the structure of your account number. At least one segment of the natural account type is required in Zuora Revenue. You can create up to 10 different segments in Zuora Revenue.

Complete the following steps to create one or more segments:

Navigate to Setups > Application.
Click to open the side menu and click Accounting Setup. The Account Setup page is displayed.
To make any changes, click Unfreeze.
To add a segment, click . A line is added.
In the Segment Name column, enter a meaningful name for the segment.
In the Segment Type column, select the appropriate type for the segment.

The segment type must be unique. It means you can create one natural account type, one legal entity type, and one intercompany account type. For other segments, keep this column blank.
(Optional): To specify how this portion of the account number is to be derived for this segment, use the Segment Source column.
- For the account number to be dynamically generated at the transaction level, select Transaction in the Segment Source column and then select the field based on which the account number is generated in the Source Field column.
- For the account number to be a fixed number, select Constant in the Segment Source column and enter the value in the Constant Value column.
Click to save your settings.
(Optional): In the Display column, specify whether this segment is to be uploaded in manual journal entries. By default, all segments are enabled for MJE upload.
To add more segments, repeat Step 4 ~ 9.
Proceed to the next task to create account types. If you have completed all the accounting setups, click Freeze.

The defined segments will be automatically populated when you define the mapping between the segments and account types.

By default, Account Segments validations are disabled. To validate, you have to manually enable the validation for Account segments.

Create account types

Account types must be created in Zuora Revenue so that amounts can be debited or credited for the appropriate accounts during data processing.

Complete the following steps to create an account:

Navigate to Setups > Application.
Click to open the side menu and click Accounting Setup. The Account Setup page is displayed.
If the accounting setup is frozen, click Unfreeze on the Account Setup page and then click Account Type.
To add an account, click . The New Account Type window is displayed.
Enter the account type name in the Account Type field and select an ID in the Account Type ID field.
Indicate the type of account by using the toggle switches in the lower half of the window.
(Optional): Specify other reference information such as waterfall type and revenue summary as needed.
Click . The account type is created.
Proceed to the next task to map segments to the account type. If you have completed all the accounting setups, go back to the Account Setup page and click Freeze.

Map segments to account types

After an account type is created, all segments that are defined on the Account Setup page are mapped to this account type. You can customize how the account number of the current account type is to be generated for each segment by editing the account map.

Complete the following steps to edit the account map:

Navigate to Setups > Application.
Click to open the side menu and click Accounting Setup. The Account Setup page is displayed.
If the accounting setup is frozen, click Unfreeze on the Account Setup page and then click Account Type.
Hover the mouse over the line of the target account type and click the Edit Account Map icon on the right. The Edit Account Mapping window is displayed.
Click the target segment line and use the Segment Source, Source Field, or Constant Value columns to specify how the account number is to be generated for the selected segment.
After you complete editing, click and close the window.
If you complete all the accounting setups, go back to the Account Setup page and click Freeze.