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Zuora Revenue

Zuora BillingZuora PaymentsZuora PlatformZuora CPQZephrZuora RevenueAccounts ReceivableRelease NotesBasicsEntitlementsSupport and policies
Zuora BillingZuora PaymentsZuora PlatformZuora CPQZephrZuora RevenueAccounts ReceivableRelease NotesBasicsEntitlementsSupport and policies

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Accounting behaviors of transaction types

PORD accounting entries

This document provides examples of PORD accounting behaviors, illustrating the impact and balance of accounting entries in scenarios of price adjustments.

Example 1 - Price down

The initial SO line of $100 is uploaded to Zuora Revenue. The release event is Upon Booking. The impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability 100 Contract Liability 100
Revenue 100 Revenue 100
Later, the SO line with the same SO line ID is uploaded to increase the SO value to $180. The impact and balance of the accounting entries will be as follows:
Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability 80 Contract Liability 180
Revenue 80 Revenue 180
Then, an invoice line of $180 is collected, which is associated with the SO line. A one-sided initial entry is created for this invoice line as follows:
Impact Balance
Account type Dr Cr Account type Dr Cr Initial Entry Flag
Contract Liability 180 Contract Liability 180 Y
The reclass entries are created by Zuora Revenue as follows. The first two lines are to reverse the journal entries created for the SO line. The other two lines are to recognize the invoice amount.
Balance
Account type Dr Cr Note
Contract Liability 180 SO reverse
Revenue 180 SO reverse
Contract Liability 180 Invoice recognized
Revenue 180 Invoice recognized
Later, a PORD line is collected, which is associated with the original SO line. The EXT_SLL_PRC value of the PORD line is -$50 to decrease the SO value by $50. The impact and balance of the accounting entries are as follows for the billed revenue:
Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability 50 Contract Liability 130
Revenue 50 Revenue 130
After the PORD line, a CM-RO line of $50 is collected. The impact and balance of the initial entry is as follows:
Impact Balance
Account type Dr Cr Account type Dr Cr Initial Entry Flag
Contract Liability 50 Contract Liability 130 Y
The accounting entries for the billed revenue remains the same:
Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability Contract Liability 130
Revenue Revenue 130

Example 2 - Price up

The initial SO line of $100 is uploaded to Zuora Revenue. The release event is Upon Booking. The impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability 100 Contract Liability 100
Revenue 100 Revenue 100

Later, the SO line with the same SO line ID is uploaded to increase the SO value to $180. The impact and balance of the accounting entries will be as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability 80 Contract Liability 180
Revenue 80 Revenue 180

Then, an invoice line of $180 is collected, which is associated with the SO line. A one-sided initial entry is created for this invoice line as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr Initial Entry Flag
Contract Liability 180 Contract Liability 180 Y

The reclass entries are created by Zuora Revenue as follows. The first two lines are to reverse the journal entries created for the SO line. The other two lines are to recognize the invoice amount.

Balance
Account type Dr Cr Note
Contract Liability 180 SO reverse
Revenue 180 SO reverse
Contract Liability 180 Invoice recognized
Revenue 180 Invoice recognized

Later, a PORD line is collected, which is associated with the original SO line. The EXT_SLL_PRC value of the PORD line is $70 to increase the SO value by $70. The impact and balance of the accounting entries for the billed revenue are as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr
Contract Liability 70 Contract Liability 250
Revenue 70 Revenue 250

Then, another invoice of $70 is collected for the PORD line. The impact and balance of the initial entry is as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr Initial Entry Flag
Contract Liability 70 Contract Liability 250 = (70+180) Y

The reclass entries are created by Zuora Revenue as follows:

Impact Balance
Account type Dr Cr Account type Dr Cr Note
Revenue 70 Contract Liability 250 Invoice recognized
Contract Liability 70 Revenue 250 Invoice recognized
Revenue 70
Contract Liability 70

Last updated: November 21, 2025