RORD collected after invoicing
A scenario that explains RORD and CM-RO accounting entries
In this scenario, the RORD line is collected after the invoice line. The current open period is Jan-2020. Both the SO line and the invoice line are collected in Zuora Revenue in January 2020. The POB is on hold for release.
|
Line ID |
Transaction Type |
Ext. Sell Price |
Allocatable |
Start Date |
End Date |
Deferred |
Released |
Period ID |
|---|---|---|---|---|---|---|---|---|
|
1.1 |
SO |
12000 |
12000 |
1/1/2020 |
12/31/2020 |
12000 |
0 |
202001 |
|
1.1 |
INV |
12000 |
12000 |
1/1/2020 |
12/31/2020 |
12000 |
0 |
202001 |
The accounting entry is created as follows:
|
Account Type |
Dr |
Cr |
Period ID |
|---|---|---|---|
|
Contract Liability |
12000 |
202001 |
In the same period, the following RORD line is collected. The Net Sell Price is the sum of SO and RORD amount, which equals $6000 and the Net Billed Amount is the invoice amount, which is $12000. Net Billed Amount is greater than Net Sell Price, so Contra AR entry is created for $6000.
|
Line ID |
Transaction Type |
Ext. Sell Price |
Allocatable |
Start Date |
End Date |
Deferred |
Released |
Period ID |
|---|---|---|---|---|---|---|---|---|
1.1 | RORD | -6000 | -6000 | 7/1/2020 | 12/31/2020 | -6000 | 0 | 202001 |
After the RORD line is collected, the allocatable amount of the original SO line is decreased.
|
Line ID |
Transaction Type |
Ext. Sell Price |
Allocatable |
Start Date |
End Date |
Deferred |
Released |
|---|---|---|---|---|---|---|---|
1.1 | SO | 12000 | 6000 | 1/1/2020 | 12/31/2020 | 6000 | 0 |
The accounting entries are created for the RORD line.
|
Account type |
Dr |
Cr | Period ID |
|---|---|---|---|
|
Contract Liability |
12000 |
202001 | |
|
Contract Liability |
6000 |
202001 | |
|
Contra AR |
6000 |
202001 |
The Contra AR reversal happens when the CM-RO line is collected for the RORD amount in the Feb-20 period.
|
Account type |
Dr |
Cr |
Period ID |
|---|---|---|---|
Contract Liability | 12000 | 202001 | |
Contract Liability | 6000 | 202001 | |
Contra AR | 6000 | 202001 | |
Contract Liability | 6000 | 202002 | |
Contra AR | 6000 | 202002 | |
Contract Liability | 6000 | 202002 |