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Forecasting

Zuora

Forecasting

Under the ASC 606 guidance, forecast reporting is one of the disclosure requirements. Zuora Revenue provides the forecast functionality to foresee the deferred revenue from a single line. With the forecast feature, you can forecast the revenue based on configurable forecast hierarchies and forecast schedules. The actuals and forecasted comparison reports can be generated to help drive your revenue recognition decision-making process.

Overview

Zuora Revenue can create forecast schedules for all transaction lines within the POB based on the associated forecast templates. Alternatively, you can manually upload forecast schedules. After that, Zuora Revenue can generate forecasted revenue for the following scenarios:

  • POBs that have met all revenue recognition criteria (actual waterfall)

  • POBs that have not met any revenue recognition criteria but has integrated into Zuora Revenue as bookings (forecast waterfall)

  • POBs that have only partially met revenue recognition criteria where bookings are partially backlog (backlog waterfall)

To have Zuora Revenue automatically create forecast schedules, you must first define a forecast template and then associate the forecast template with the POB template. In the forecast template definitions, you need to specify the forecast date hierarchy by specifying the dates based on which revenue can be forecasted. Then, you define the forecast schedules, which includes durations and the percentage of the forecasted revenue to be released in each duration, for each forecast date hierarchy.

A background job is scheduled to run on a daily basis to generate the forecasted revenue for the POBs that have forecast templates associated or have manually uploaded schedules. Periodic snapshots of the forecast are captured at the end of each month.

Related articles

For Zuora Revenue to automatically create forecast schedules, see Create forecast template.

For information about manually uploading forecast schedules to Zuora Revenue, see Manually upload forecast schedules.

For calculation examples of forecasting waterfall, see Waterfall calculation.