The scope

The Revenue Recognition Rule for Non-Subscription Items tenant setting serves as a default revenue recognition rule for invoice items that are not associated with a subscription rate plan charge.

This setting applies only to standalone invoice items, such as:

• Invoice items created from external charges

• Invoice items created from standalone order line items

• Manually created standalone invoices

This setting does not affect revenue schedule creation for subscription rate plan charges. If a revenue schedule is missing for a subscription charge, investigate other possible causes listed in the tables in Revenue schedule FAQs.

How Zuora determines the revenue recognition rule for standalone invoice items

When processing a standalone invoice item, Zuora determines the revenue recognition rule in the following order:

1. The revenue recognition rule explicitly specified at invoice creation (through the API or UI).

2. The accounting codes and revenue recognition rule from the associated charge or order line item.

3. The Revenue Recognition Rule for Non-Subscription Items tenant setting (used as the fallback default).

If none of these sources provide a revenue recognition rule, Zuora cannot create a revenue schedule for the invoice item.

Revenue recognition rule set to Unlimited Recognition

If the revenue recognition rule is successfully determined but is set to Unlimited Recognition, Zuora does not create a revenue schedule for the invoice item. This is expected behavior.

The following are the recommended actions:

• If a standalone invoice item does not have a revenue schedule and you see this message, configure the Revenue Recognition Rule for Non-Subscription Items in Settings > Finance > Manage Non-Subscription Items and Standalone Orders. For more information, see Manage Revenue Recognition Rules.

• If the invoice item is associated with a subscription rate plan charge, this setting is not the cause. Investigate other reasons listed in Revenue schedule FAQs.