Manage Revenue Recognition rules
Know how to manage a revenue rule, including how to associate the rule with a charge
Revenue rules are instances of revenue rule models. These rules are associated with product rate plan charges. Rules help manage revenue recognition on subscription charges. This article explains how to manage a revenue rule, including how to associate the rule with a charge.
Revenue rules
You can do the following when managing revenue rules:
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View the configuration of a rule.
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Create or update a rule.
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Activate or deactivate a rule so that it can be applied to charges.
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Delete a rule from the list.
Zuora provides the following pre-configured revenue rules:
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Recognition upon invoicing
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Recognition daily over time
See Revenue Rule Models for descriptions of rule models and for steps on how to enable them for use.
Revenue Rule usage criteria
A revenue rule is in use when it is used by a subscription charge or used in a revenue schedule. A revenue rule is not in use if it is deactivated or associated with a product rate plan charge, but used by a subscription or in a revenue schedule. The status of a rule determines if you can update, delete, or associate the rule with a charge.
The following table summarizes when you can change the status of a rule, edit, or delete a rule.
|
Rule Status |
Is Associated with Product Charge? |
Is in Use? |
Can Change Status? |
Can Update Rule? |
Can Delete? |
|---|---|---|---|---|---|
|
Active |
|
|
Can Deactivate |
|
Must Deactivate First |
|
Active |
|
|
Cannot Deactivate |
|
|
|
Active |
|
|
Cannot Deactivate |
|
|
|
Deactivated |
|
|
Can Activate |
|
|
To know how to manage a revenue rule, refer to Manage a revenue rule.
Override the Revenue Rule on a subscription charge
You can override the revenue rule applied to the product rate plan charge when creating the subscription. A subscription charge is the charge for a product rate plan.
For example, if you have two rate plans in a subscription, and each rate plan has three charges. This subscription has six charges (2 rate plans multiplied by 3 charges). You can override any of the six subscription charges while creating the subscription.
To override the revenue rule on a subscription charge through the SOAP API, you can use the RevenueRecognitionRuleName field on the RatePlanCharge object.
To override the revenue rule from the Zuora UI, click the charge name in the Products & Charges section. Scroll to the Finance section and select the revenue rule from the drop-down.
Override the Revenue Rule on a draft Credit Memo or Debit Memo
You can override the revenue rule applied to the credit and debit memos in Draft status. See Edit Credit and Debit Memos for details.
Note that credit and debit memos are only available if you enable the Advanced AR Settlement feature.
The Invoice Settlement feature is generally available as of Zuora Billing Release 296 (March 2021). This feature includes Unapplied Payments, Credit and Debit Memos, and Invoice Item Settlement. If you want to have access to the feature, see Invoice Settlement Enablement and Checklist Guide for more information. After Invoice Settlement is enabled, the Invoice Item Adjustment feature will be deprecated for your tenant.