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How do I use accounting codes?

Overview

Accounting Codes are commonly referred to as General Ledger Accounts or General Ledger Account Codes. In Zuora, the use of accounting codes are optional but recommended. The solution below describes how accounting codes can be used for aggregation and reporting, and where the accounting codes are derived and defined in Zuora.

Solution

How Accounting Codes Are Used

An accounting code in Zuora allows you to aggregate Zuora transaction data. For example, you can use an accounting code called "Subscription" for all subscription services in your product catalog and use another accounting code called "Professional Services" for all other services.  Regardless of the number of products, rate plans, or charges you may have, it is possible to summarize all your invoices by these two accounting codes. There is no limit to the number of accounting codes you can enter in Zuora. Therefore, alternatively, you can use as many different accounting codes as you would like to summarize your transactions.

Using Zuora Reporting, Data Sources, or the Zuora Standard AR Summary Report, you can can create reports and data extracts based off of the accounting code for each transaction type. Such reports or data extracts can be used for creating journal entries or for line item integration into your accounting system.

How Accounting Codes Are Derived and Defined in Zuora

Accounting Codes are not mandatory and your company can choose whether you would like to use Accounting Codes to summarize Zuora transactions.

The following chart summarizes where accounting codes are derived and defined in Zuora.

Transaction Where the Accounting Code is Derived From Where to Define the Accounting Code in Zuora

Invoice Item

Rate Plan Charge

  • If ZuoraFinance is enabled:
    Product Catalog Rate Plan Charge > Finance > Accounting Code
  • If Zuora Finance is not enabled:
    Product Catalog Rate Plan Charge > Name > Accounting Code

Invoice Payment

Payment Method

Tax Item

Tax Code

Finance Settings > Configure Accounting Codes

Credit Balance Payment

Finance Settings: Configure Accounting Codes

Finance Settings > Configure Accounting Codes

Payment Refund

Payment Method

Finance Settings > Configure Accounting Codes

Credit Balance Refund

Finance Settings: Configure Accounting Codes

Finance Settings > Configure Accounting Codes

Credit Balance Adjustment

Finance Settings: Configure Accounting Codes

Finance Settings > Configure Accounting Codes

Invoice Adjustment

Note: Invoice Adjustment is deprecated on Production. Zuora recommends that you use the Invoice Item Adjustment instead.

Invoice Adjustment Transaction

When creating an Invoice Adjustment, go to Additional Fields > Accounting Code

Invoice Item Adjustment

Invoice Item: Rate Plan Charge

  • If ZuoraFinance is enabled:
    Product Catalog Rate Plan Charge > Finance > Accounting Code
  • If ZuoraFinance is not enabled:
    Product Catalog Rate Plan Charge > Name > Accounting Code
  • When adjusting an invoice item, go to Advanced Options > Change Accounting Codes. See Override Invoice Item Adjustment Service Periods and Accounting Codes for more information.
Last modified
01:44, 14 Apr 2015

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