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SO accounting entries

Zuora

SO accounting entries

Two examples are provided to explain SO accounting behaviors.

Example 1 - Right to Bill flag set to N

In this example, the initial SO line of $100 is uploaded to Zuora Revenue. The release event is Upon Booking. The impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability 100   Contract Liability 100  
Revenue   100 Revenue   100

Later, the SO line with the same SO line ID is uploaded to increase the SO value to $180. The impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability 80   Contract Liability 180  
Revenue   80 Revenue   180

After that, the SO value is decreased to $150 in another upload. The impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability 30   Contract Liability 150  
Revenue   30 Revenue   150

Example 2 - Right to Bill flag set to Y

In this example, the initial SO of $100 is uploaded to Zuora Revenue. The release event is Upon Booking and the Right_to_Bill flag is set to Y. No invoice is received. The Unbilled account will be impacted. After the initial upload, the impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Unbilled 100   Unbilled 100  
Revenue   100 Revenue   100


Again, the SO value is increased to $180 in the next upload and no invoice is received. The impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Unbilled 80   Unbilled 180  
Revenue   80 Revenue   180

Then, the SO value is decreased to $150 in another upload and no invoice is received yet. The impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Unbilled 30   Unbilled 150  
Revenue   30 Revenue   150

After that, an invoice of $100 is received. The impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability   100 Contract Liability 100  
Unbilled   100 Unbilled 50  
Revenue 100   Revenue   150
Contract Liability 100        
Revenue   100