Predefined contract modification rules

There is a reduction in term or in quantity of a distinct POB and the canceled term or quantity is greater than or equal to the remaining value of the POB.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a distinct POB and ends in December 2019. The POB release event is upon booking. Amendment occurs in the Jun-2019 period with term reversal from March to December 2019.

There is a reduction in term or in quantity of a distinct POB and the canceled term or quantity is less than or equal to the remaining value of the POB.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a distinct POB and ends in December 2019. The POB release event is upon booking. Amendment occurs in the Jun-2019 period with term reversal from October to December 2019.

There is a reduction in term or in quantity of a non-distinct POB and the canceled term or quantity is greater than or equal to the remaining value of the POB.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a non-distinct POB and ends in December 2019. The POB release event is upon booking. Amendment occurs in the Jun-2019 period with term reversal from March to December 2019.

There is a reduction in term or in quantity of a non-distinct POB and the canceled term or quantity is less than or equal to the remaining value of the POB.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a non-distinct POB and ends in December 2019. The POB release event is upon booking. Amendment occurs in the Jun-2019 period with term reversal from October to December 2019.

There is a credit memo for the distinct POB, which reduces the transaction price of the contract and the unit sell price of the item.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a distinct POB and ends in December 2019. The POB release event is upon booking. Amendment occurs in the Jun-2019 period with a reduction in price for the same quantity and term.

There is a credit memo for the non-distinct POB, which reduces the transaction price of the contract and the unit sell price of the item.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a non-distinct POB and ends in December 2019. The POB release event is upon booking. Amendment occurs in the Jun-2019 period with a reduction in price for the same quantity and term.

A new POB is added to the revenue contract and the allocatable value of all the POB's lines falls within the SSP range.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a non-distinct POB and ends in December 2019. The POB release event is upon booking. Amendment occurs in the Jun-2019 period to add a new line to the revenue contract and the sell price of the new line is within the SSP range.

A new POB is added to the revenue contract and at least one of the POB's lines has the allocatable value that falls out of the SSP range.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a non-distinct POB and ends in December 2019. The POB release event is upon booking. Amendment occurs in the Jun-2019 period to add a new line to the revenue contract and the sell price of the new line is out of the SSP range.

A new line is added to the consolidated non-distinct POB and all the other lines of the POB have not been recognized.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a non-distinct POB and ends in December 2019. The POB release event is upon booking. No revenue has been recognized. Amendment occurs in the Jun-2019 period to add a new line to the existing POB of the revenue contract.

A new line is added to the consolidated distinct POB and all the other lines of the POB have not been recognized.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a distinct POB and ends in December 2019. The POB release event is upon booking. No revenue has been recognized. Amendment occurs in the Jun-2019 period to add a new line to the existing POB of the revenue contract.

A new line is added to the consolidated non-distinct POB and other lines of the POB have been partially or fully recognized.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a non-distinct POB and ends in December 2019. The contract has been recognized until May 2019. Amendment occurs in the Jun-2019 period to add a new line to the existing POB of the revenue contract.

A new line is added to the consolidated non-distinct POB and other lines of the POB have been partially or fully recognized.

For example, the current open period is Jan-2019. A contract (SO) is created in January 2019 based on a distinct POB and ends in December 2019. The POB release event is upon booking. The contract has been recognized until May 2019. Amendment occurs in the Jun-2019 period to add a new line to the existing POB of the revenue contract.

The unit sell price of the existing distinct POB is increased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a distinct POB and ends in December 2019. The POB release event is upon booking. The contract has been recognized until May 2019. Amendment occurs in the Jun-2019 period with an increase in the contract value to $13000 for the same term and quantity. 

The unit sell price of the existing non-distinct POB is increased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a non-distinct POB and ends in December 2019. The POB release event is upon booking. The contract has been recognized until May 2019. Amendment occurs in the Jun-2019 period with an increase in the contract value to $13000 for the same term and quantity. 

The extended sell price of the existing distinct POB is decreased to a value that is more than the recognized amount.

For example, the current open period is Jan-2019. A contract (SO) is created for $13000 in January 2019 based on distinct POB and ends in December 2019. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to reduce the contract value to $12000 (which is more than the recognized $5000) for the same term and quantity. 

The extended sell price of the existing non-distinct POB is decreased to a value that is more than the recognized amount.

For example, the current open period is Jan-2019. A contract (SO) is created for $13000 in January 2019 based on non-distinct POB and ends in December 2019. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to reduce the contract value to $12000 for the same term and quantity.

The extended sell price of the existing distinct or non-distinct POB is decreased to a value that is less than the recognized amount.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on distinct/non-distinct POB and ends in December 2019. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to reduce the contract value to $4000 for the same term and quantity. 

The quantity of the existing non-distinct POB is increased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a non-distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to increase the quantity to 18 for the same term and unit price. 

The quantity of the existing distinct POB is increased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to increase the quantity to 18 for the same term and unit price. 

The quantity of the existing non-distinct POB is decreased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a non-distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to reduce the quantity to 6 for the same term and unit price.

The quantity of the existing distinct POB is decreased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to reduce the quantity to 6 for the same term and unit price.

The term of the existing distinct POB is increased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to December 2020 for the same quantity and unit price.

The term of the existing distinct POB is decreased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to June 2019 for the same quantity and unit price.

The term of the existing non-distinct POB is increased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a non-distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to December 2020 for the same quantity and unit price.

The term of the existing non-distinct POB is decreased.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a non-distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to June 2019 for the same quantity and unit price.

The term of the existing distinct or non-distinct POB is decreased to a value that is less than the term in the current period.

For example, the current open period is Jan-2019. A contract (SO) is created for $12000 in January 2019 based on a non-distinct POB and ends in December 2019. The quantity in the original contract is 12. The POB release event is upon booking and the ratable method is contract ratable. $5000 has been recognized until May 2019. Amendment occurs in the Jun-2019 period to change the end date to March 2019 for the same quantity and unit price.

A transaction line or POB is manually linked to the existing revenue contract.

For example, two SO lines starting from January 2019 to December 2019 are collected in Zuora Revenue based on the distinct POB template. The release event is Upon Booking. Revenue has been recognized until May 2019. The current open period is January 2019. In the current open period, one line is manually delinked from one revenue contract and then linked to another one.

During the contract revision timeline, the Material Right flag of a transaction line is changed from Y to N. After the contract modification, if there is no material right eligible line in the revenue contract, the existing material right lines in the contract will be updated with all columns set to 0. If there is still more than one material right line in the contract, the existing material right lines in the contract will be updated with new values.

For more information about material rights, see Material rights.

During the contract revision timeline, the Material Right flag of a transaction line is changed from N to Y, a material right line is created in the contract.

For example, a contract is created with one product line and one service line. The Material Right flag of the service line is set to N. After the contract enters the revision timeline, the SO line update is collected to update the Material Right flag of the service line to Y. Then, a material right line is created in the revenue contract.

During the contract revision timeline, the quantity of a VC eligible line is changed and the fair value of this line is within the SSP range. 

For example, a contract is created with 3 lines. One line is eligible for variable change. The fair value of this line is within the SSP range. Allocation has been triggered for this contract because the fair value of some other line is not within the range. This period has been closed and then move to the next period. Amendment occurs to change the quantity of the VC eligible line.

During the contract revision timeline, the quantity of a VC eligible line is changed and the fair value of this line is not within the SSP range. 

For example, a contract is created with 3 lines. One line is eligible for variable change. The fair value of this line is not within the SSP range. Allocation has been triggered for this contract because the fair value of one or more lines is not within the range. This period has been closed and then move to the next period. Amendment occurs to change the quantity of the VC eligible line.

The CV Eligible Flag of the line is changed from Y to N.

For example, a line is collected with the CV Eligible Flag being Y. In the next period, an SO update is collected to change this line to an allocation ineligible line.

The CV Eligible Flag of the line is changed from N to Y.

For example, a line is collected with the CV Eligible Flag being N. In the next period, an SO update is collected to change this line to an allocation eligible line.

This rule is applicable to the Billing - Revenue Integration environment.

The subscription or amendment is deleted in Zuora Billing and gets consumed in Zuora Revenue.

During the revision period, values of the SSP stratification fields are changed on the SO line. 

For example, the Product Family field is used as an SSP stratification column. During the revision period, SO updates are collected with a new value for the Product Family field.