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Integration of current GAAP and future GAAP

Zuora

Integration of current GAAP and future GAAP

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You can integrate your data from the current GAAP (ASC 605) to the future GAAP (ASC 606) when you work with different versions of Zuora Revenue's accounting principles (ASC 605 and ASC606). For more details on GAAP see, Revenue Recognition.

Integration methods

The following integration methods are supported in Zuora Revenue:

  • Process Arrangement in cGAAP and interface Arrangement to fGAAP
    With this integration method, Zuora Revenue will process transactions under the current GAAP and then load transactions to the staging tables under the future GAAP with Revenue Contract ID and Arrangement ID stamped without the prefix. Except Sales Order and Invoice Deleted transactions, all transaction types are moved to the staging tables under the future GAAP. Revenue comparison is possible between the current GAAP and the future GAAP.
  • Interface Transactions to cGAAP and fGAAP stage
    With this integration method, when transactions are loaded to the staging tables under the current GAAP, the same transactions are loaded to the staging tables under the future GAAP. However, the Revenue Contract ID will not be stamped in the staging tables under the future GAAP.

Transaction discrepancy

In Zuora Revenue under the future GAAP, the following types of transactions will be deleted from the staging tables under the current GAAP immediately after these transactions are loaded to the staging tables under the future GAAP.

  • Credit memo created (Transaction Type = CM)
  • Credit memo cancellation (Transaction Type = CM-C)
  • Credit memo for return (Transaction Type = CM-R)
  • Credit memo for reduction order (Transaction Type = CM-RO)
  • Reduction order (Transaction Type = RORD)
  • Cost (Transaction Type = CST)

In Zuora Revenue under the current GAAP, credit memo transactions are indicated by Transaction Type being INV and Cancel Flag being Yes. This type of transaction under the current GAAP can be passed onto the staging tables under the future GAAP. However, in the same record of the ARR transaction staging table, you must use the INTG_TYPE column to populate the corresponding transaction types that are supported by the future GAAP. Use the following table to map the INV transactions under the current GAAP to the transaction types that can be supported by the future GAAP.

Transaction type under current GAAP Quantity invoiced Cancel flag Return flag Transaction type under future GAAP
INV   Y   CM-C
INV A negative value   Y CM-R
INV 0   Y CM

Configuration procedure

For Zuora Revenue to perform data integration, some configurations are required in both the versions of Zuora Revenue. The configuration steps are outlined as follows:

  1. Enable data integration in current GAAP.
  2. Set up integration method in future GAAP.
  3. Define integration mapping in future GAAP.

Enable data integration in current GAAP

Complete the following steps to configure the previous version of Zuora Revenue (or RevPro) for data integration from the current GAAP to the future GAAP:

  1. In Zuora Revenue under the current GAAP (ASC 605), navigate to Setups > Application and click the IT Admin Lookups tab.
  2. In the Lookup Type field, select COMMON SETUP from the drop-down list. The common setup is displayed.
  3. Right-click the COMMON SETUP line and then click Edit Lookup Definitions. The Edit Lookup Definitions tab is displayed.
  4. Locate the ALLOW_REVPRO3_INTEGRATION line and set its lookup value to Y.
  5. Click icon-new-save.png to save the configuration.

The integration between the current GAAP and the future GAAP is enabled.

Set up integration method in future GAAP

In the latest version of Zuora Revenue, complete the following steps:

  1. In Zuora Revenue under the future GAAP (ASC 606), navigate to Setups > Application.
  2. Click open-side-menu.png to open the side menu and click Profiles.
  3. On the Profiles page, locate the RPRO_GD_INTG_METHOD line.
  4. Hover the mouse over the line and click icon-edit-line.png.
  5. In the Edit Profile window, ensure that RPRO_GD_INTG_METHOD is selected in the Lookup field.
  6. In the System Level Value field, select one of the following integration methods:
    • Process Arrangement in cGAAP and interface Arrangement to fGAAP
    • Interface Transactions to cGAAP and fGAAP stage
    • Interface Transactions to fGAAP (With this option, the transactions are loaded to the staging tables under the future GAAP only.)
  7. Click icon-new-save.png and close the window.

The integration method to be applied is set up.

Define integration mapping in future GAAP

You must define the field mapping for data integration so that the field in the current GAAP can be mapped to the appropriate field in the future GAAP. For example, the Arrangement ID in the current GAAP should be mapped to the Revenue Contract ID in the future GAAP.

An integration mapping example is provided in a downloaded file for your reference. See Worksheet in integration of Zuora Revenue from current GAAP to future GAAP.xlsx. In this spreadsheet, fields in the Source Column with a prefix of INTG indicate that these fields are specific to the future GAAP.

Complete the following steps to define the field mapping for data integration between the current GAAP and the future GAAP:

  1. In Zuora Revenue under the future GAAP (ASC 606), navigate to Setups > Application.
  2. Click open-side-menu.png to open the side menu and click Integration Mapping to define the field mapping between transactions under the current GAAP and the future GAAP.
  3. Click icon-add-new.png to add a line for field mapping.
  4. In the Source Column cell, select the field name under the current GAAP to be mapped.
  5. In the Destination Column cell, select the field name under the future GAAP to which the source column is mapped.
  6. In the Source Table cell, select the appropriate table based on the integration method to be applied.
    Integration method Source table to be selected
    Process Arrangement in cGAAP and interface Arrangement to fGAAP
    • Select RPRO_ARR_TRANSACTIONS for the fields that exist in both current GAAP and the future GAAP, for example, CV_ELIGIBLE_FLAG, which exists both in RPRO_ARR_TRANSACTIONS in the current GAAP and RPRO_LINE_STG in the future GAAP. 
    • Select RPRO_ARR_TRANSACTIONS_STG for the fields that exist in the future GAAP only, for example, AR_ACCOUNT, which is specific to the future GAAP. 
    Interface Transactions to cGAAP and fGAAP stage Select RPRO_ARR_TRANSACTIONS_STG for all fields.
  7. Add the required number of lines.
  8. Click icon-save-new.png and close the window.

The field mapping for data integration is defined.