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Known limitations of Billing - Revenue Integration

Zuora

Known limitations of Billing - Revenue Integration

As Zuora Billing and Zuora Revenue have different policies and requirements, some limitations are applicable to Billing - Revenue Integration. 

Evergreen subscriptions

  • Billing - Revenue Integration does not support the booking-based revenue recognition for evergreen subscriptions. Only billing-based revenue recognition for evergreen subscriptions is supported. It is because evergreen subscriptions have no end date and the transaction price can only be calculated at the time of billing.
  • Billing - Revenue Integration cannot automatically support the conversion from termed subscriptions to evergreen subscriptions. You have to manually create new revenue contracts for the converted evergreen subscriptions.

Handling amendments

  • Deletion of amendments is not supported by Billing - Revenue Integration. It is because deleting an amendment happens in Zuora Billing and cannot be automatically picked up by Zuora Revenue. 
  • Amendment of removing product that happens in an already billed period cannot be supported for discount charges. It might cause a mismatch between billing and booking values.
  • The amendment for quantity upsell in Zuora Billing cannot be treated as a new revenue contract or a new POB in Zuora Revenue.

Deleting or unposting transactions

Zuora Billing allows deleting transactions, updating transaction dates, and unposting billing documents. These transactions and billing documents might have already been interfaced with Zuora Revenue. However, these changes cannot be synced automatically into Zuora Revenue because of the audit requirements of Zuora Revenue. Therefore, you cannot perform the following tasks if you have Billing - Revenue Integration enabled:

  • Delete non-draft subscriptions or orders.
  • Delete non-draft amendments.
  • Unpost invoices, credit memos, or debit memos.
  • Delete invoice item adjustments, credit memos, or debit memos.
  • Change effective dates if a subscription or an order is already active.
  • Delete renewed subscriptions without canceling the corresponding generated invoices.

Otherwise, the variance for reconciliation between booking and billing can be introduced. 

Invoice date earlier than booking date

Billing - Revenue Integration supports that the invoice date is earlier than the booking date only after the booking data becomes eligible to be collected in Zuora Revenue. It is because the Data Collection program in Zuora Revenue always collects the booking data before the billing data. For example, the booking date for a subscription is 04/02/2020, and its invoice date is set to 04/01/2020, the transaction lines can be picked up correctly in Zuora Revenue on 04/02/2020 or later. 

Charges with no dates

Billing - Revenue Integration does not support the charges with no dates that come from the subscriptions in Pending Activation status.

Usage charges

  • Billing - Revenue Integration does not support the booking-based revenue recognition for usage charges.
  • The overage smoothing charge model used in usage charges cannot be supported by Billing - Revenue Integration.

Discount charges

  • Billing - Revenue Integration does not support account-level discounts in Zuora Billing.
  • Billing - Revenue Integration only supports the billing-based revenue recognition for fixed amount discounts. 
  • Fixed amount discounts are supported only as a standalone transaction line for the full booking period with no reference to the regular charge.
  • When multiple discount charges overlap with the same regular charge, it will cause the variance for reconciliation between booking and billing.

Prepayments

Billing - Revenue Integration does not support prepayment charges in Zuora Billing. The Prepayment feature is deprecated in Zuora Billing and available only for backward compatibility.

Custom field update

For the custom field defined in Zuora Billing that has revenue impact, after the object data has synced to Zuora Revenue, any update to the custom fields in Zuora Billing cannot be automatically interfaced to Zuora Revenue.

Credit Balance Adjustment object

Billing - Revenue Integration does not support the Credit Balance Adjustment object in Zuora Billing.

Invoice Past End-of-Term billing rule

The Invoice Past End-of-Term billing rule in Zuora Billing cannot be supported by Billing - Revenue Integration. Do not enable this billing rule because it might cause incompatibility with ASC 606 revenue recognition. 

Variable consideration

The variable consideration (VC) processing is not supported.

Mass actions

You can take mass actions on revenue contracts only. See Unavailable mass actions for a list of unsupported mass actions by Billing - Revenue Integration.

Event processing

Currently, only the By Percent processing type is supported by Billing - Revenue Integration. Events cannot be processed based on the amount. For more information about creating event types, see Event setup.

Material rights

Billing - Revenue Integration does not support material right processing, which is an advanced functionality in Zuora Revenue.