LT/ST reclassification process
Run LT/ST Reclass in Zuora Revenue to create schedules for eligible transactions and, if needed, generate MJE directly from the UI
In Zuora Revenue, the balance in your Contract Liability account as of the current period end can be reclassified as long-term and short-term accounts based on the future revenue waterfall. This process is referred to as long-term and short-term reclassification (LT/ST Reclass) in Zuora Revenue. This reclassification process also covers the Allocation Adjustment Liability account and cost-accrual account.
The LT/ST reclassification process can be started by using the LT/ST Reclass menu option in the Zuora Revenue UI. After this process is completed, LT/ST schedules are created for the eligible transaction lines and are downloadable for review. Then, you can also choose to create MJE for these LT/ST schedules directly in the UI.
37.014.00.00 onwards system automates LT/ST Reclass process for the entire month. To Close the Period for the month, you must trigger the LT/ST batch from the UI and create MJE.
Before you begin
Before you start the LT/ST reclassification process, make sure that the following requirements are met:
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The LT/ST reclassification related profiles are specified according to your business needs. For more information, see Configuration overview.
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The setups of account types, user security, and revenue books are ready in the system. For more information, see Configuration overview.
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If the netting functionality is enabled in the system, the netting process must be performed before the LT/ST reclassification process when all the revenue release is complete for a given period. Otherwise, the LT/ST reclassification process cannot be started correctly. If the netting functionality is not enabled in the system, it is not mandatory to the complete the netting process before LT/ST reclassification. For more information, see Netting process.
For steps on starting the LT/ST reclassification process, see here.
FAQs on automated LT/ST process
Q: What is the frequency of the automated LT/ST process?
A: The system triggers the automated LT/ST computation once a day during non-peak hours of the PST time zone.
Q: Which reports are impacted during the period with the automated LT/ST process?
A: While there is no impact on the RC RollForward report, the Netting / LTST report will display the output based on the last automation execution.
Q: What is the impact on month-end user steps of LT/ST?
A: You will run the same jobs and processes. The execution time will be faster as it now runs in incremental mode.
Q: How do I validate the completeness of LT/ST execution?
A: Optionally run the select * from rpro_rtp_wi_header_g where status = 'NEW'; query from Data query utility before closing the period to ensure no RCs are showing up in the queue
Q: During period close & open, will the automation still run?
A: No, the automation is incompatible with the Period Close and Open Summarization. The automation will run only when the period status is Open.