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Use cases of mapping order actions or amendments

Zuora

Use cases of mapping order actions or amendments

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Billing - Revenue Integration includes support for various use cases. The following table demonstrates how order actions or amendments are mapped to Zuora Revenue sales order actions: 

Zuora Order Action/amendment Termed subscription: Segment/charge behavior Evergreen subscription: Segment/charge behavior Zuora Revenue SO action
New Subscription
  • New Charge ID
  • New Segment
  • New Charge ID
  • New Segment with no End Date
 New SO Line
New Product
  • New Charge ID
  • New Segment
  • New Charge ID
  • New Segment with no End Date
 New SO Line
Amendment/Order Action - Price Change
  • Original Charge ID
  • Existing Charge Segment with an End Date
  • Original Charge ID
  • Existing Charge Segment with an End Date
 Update Existing SO Line
  • New Charge Segment with an End Date
  • New Charge Version
  • New Charge Segment with no End Date
  • New Charge Version
 New SO Line
Amendment/Order Action - Quantity Change
  • Original Charge ID
  • Existing Charge Segment with an End Date
  • Original Charge ID
  • Existing Charge Segment with an End Date
 Update Existing SO Line
  • New Charge Segment with an End Date
  • New Charge Version

  • New Charge Segment with no End Date

  • New Charge Version

 New SO Line
Renewal
  • Original Charge ID
  • New Charge Segment with an End Date
  • Original Charge ID
  • New Charge Segment with no End Date
 New SO Line
Remove Product
  • Original Charge ID
  • Bring forward Segment End Date
  • Original Charge ID
  • Create Segment End Date
 Update SO Line
Cancel
  • Original Charge ID
  • Bring forward Segment End Date
  • Original Charge ID
  • Create Segment End Date
 Update SO Line
Terms and Conditions
  • Original Charge ID
  • Extend or bring forward Segment End Date
  • Original Charge ID
  • Extend or bring forward Segment End Date
 Update SO Line
Suspend
  • Original Charge ID
  • Bring forward Segment End Date
  • Original Charge ID
  • Bring forward Segment End Date
 Update SO Line
Resume
  • Original Charge ID
  • New Segment
  • Original Charge ID
  • New Segment
 New SO Line
Owner Transfer None None None

When creating a new subscription or amending an existing subscription in Zuora Billing, the number of the created SO lines depends on the discount type of rate plan charges:

  • For regular rate plan charges without discount, including one-time charges and recurring charges, each charge is mapped to one sales order (SO) line in Zuora Revenue.
  • For fixed amount discount charges, a charge is treated in Zuora Revenue as a new and stand-alone SO line that will not be allocated, regardless of how it is applied. This is done through extracting the Fixed Amount Discount amount from the Rate Plan Charge Tier data source from Zuora Billing.
  • For percentage discount charges, a charge can be mapped to multiple SO lines in Zuora Revenue depending on the number of transactions it is applied to. It ensures Zuora Revenue can correctly allocate the revenue against the charges that have been discounted.

See Charge Models for more information on rate plan charge models.

Segment changes with Billing - Revenue Integration enabled

New segment created upon subscription renewal

In the scope of Zuora Billing, when you renew a subscription, the existing rate plan charge segment is extended. This behavior can result in several issues when relevant data is collected by Zuora Revenue, so the subscription renewal logic is changed in Zuora Billing if you enable the Zuora Billing - Revenue Integration feature. With this feature enabled, when you renew a subscription, a new rate plan charge segment is created. The original charge segment is thus split into two segments.

However, historical charge segments will not be split by term. It is because Charge Segment is a fundamental object in Zuora Billing, which not only is used by Billing - Revenue Integration, but can impact other downstream functions like rating and invoicing. Therefore, to mitigate the risk of duplicating rated or billed charge segments, the segments for historical charges cannot be split by the time the Billing - Revenue Integration is enabled.

Segment splitting for amendments

Billing - Revenue Integration uses the combination of original charge ID and charge segment to identify the granular transactions within the booking and billing data.
When you create a new termed subscription associated with a rate plan charge, Zuora Billing creates a new charge segment that starts from the subscription term start date until the term end date. For evergreen subscriptions, no end date is set for this segment. 
If you amend the price or quantity during the subscription term, the initial charge segment will be split into two segments - the existing segment and the new segment.

  • For the existing segment: the start date remains the original term start date, and the end date is updated to the amendment date. 
  • For the new segment: the start date is the amendment date and the end date remains the original subscription term end date. No end date is set for evergreen subscriptions. 

Examples

The examples of typical use cases are provided in this section to help you understand how the actions in Zuora Billing affect Zuora Revenue behaviors.

New subscription

If you create a subscription of Product A (Quantity:1) on Jan 1, 2019 for 1 year in Zuora Billing, and the monthly fee is $100, the following data will be sent to Zuora Revenue:

Charge Name Original Charge ID Subscription Version Charge Segment Quantity Dates Booked Value Zuora Revenue Transaction Type
Product A Monthly 1a2b3c 1 1 1 01/01/19 - 12/31/19 $1,200 New SO (#1)

Zuora Revenue will create a new revenue contract that includes one SO line (SO #1).

Increase price

The monthly fee is increased to $150 on Jul 1st, 2018, then the original rate plan charge segment will be split into two segments:

Charge Name Original Charge ID Subscription Version Charge Segment Quantity Dates Booked Value Zuora Revenue Transaction Type
Product A Monthly 1a2b3c 2 1 1 01/01/19 - 06/30/19 $600 Update SO (#1)
Product A Monthly 1a2b3c 2 2 1 07/01/19 - 12/31/19 $900 New SO (#2)

This amendment will trigger the prospective contract modification to the existing revenue contract. Zuora Revenue will bring forward the end date for SO #1 and create a new SO line (SO #2).

Increase quantity

On Oct 1, 2019, you want to increase the quantity to 2, then the latest charge segment will be split again into two segments:

Charge Name Original Charge ID Subscription Version Charge Segment Quantity Dates Booked Value Zuora Revenue Transaction Type
Product A Monthly 1a2b3c 2 2 1 07/01/19 - 09/30/19 $450 Update SO (#2)
Product A Monthly 1a2b3c 2 3 2 10/01/19 - 12/31/19 $900 New SO (#3)

This amendment will trigger the prospective contract modification to the existing revenue contract. Zuora Revenue will bring forward the end date for SO #2 and create a new SO line (SO #3).

Add a product

On Nov 1, 2019, you want to add a Product B (quantity:1) to this subscription for one month. It is a one-time charge and the price of Product B is $500 per month. The following data will be sent to Zuora Revenue:

Charge Name Original Charge ID Subscription Version Charge Segment Quantity Dates Booked Value Zuora Revenue Transaction Type
Product B 1a2b3c 3 1 1 11/01/19 - 11/30/19 $500 New SO (#4)

This amendment will trigger the prospective contract modification to the existing revenue contract. A new performance obligation (POB) will be added to the contract (SO #4).

Renew subscription

On Dec 31, 2019, you decide to renew the subscription for Product A with the existing quantity for the following year at the price of $150 per month. The data sent to Zuora Revenue will be:

Charge Name Original Charge ID Subscription Version Charge Segment Quantity Dates Booked Value Zuora Revenue Transaction Type
Product A Monthly 1a2b3c 4 4 2 01/01/20 - 12/31/20 $3,600 New SO (#5)

Zuora Revenue will create a new revenue contract that includes a new SO line.