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INV accounting entries

Zuora

INV accounting entries

In this example, the original SO line of $100 is collected in Zuora Revenue. The release event is Upon Billing, so there is no impact for the initial SO upload. The accounting entries will be the same no matter whether the Right_to_Bill flag is Y or N. 

Later, an invoice of $100 is collected, which is associated with this SO line. A one-sided initial entry is created for $100 in Zuora Revenue because the invoice is created outside of Zuora Revenue. The balance of the accounting entries are as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr Initial Entry Flag
Contract Liability   100 Contract Liability   100 Y
Contract Liability 100   Contract Liability 100   N
Revenue   100 Revenue   100 N

Then, the SO update is collected to increase the SO line value to $180. The release event is Upon Billing, so there is no accounting impact for the SO update. Later, a second invoice of $80 is collected. Again, a one-sided initial entry is created for this invoice and the balance of the accounting entries are as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr Initial Entry Flag
Contract Liability   80 Contract Liability   180 = (100+80) Y
Contract Liability 80   Contract Liability 180   N
Revenue   80 Revenue   180 N