Policy Management
Learn how to configure policies in Zuora Revenue to automate the revenue recognition process according to ASC 606 guidelines.
Policy configuration is important for Zuora Revenue to automate the revenue recognition process in the desired way. Basic policy-related configuration options are accessed by using the Policy menu in the Zuora Revenue UI.
ASC 606 breaks down the revenue recognition process into five basic steps:
- Group transaction lines into revenue contracts.
- Identify the performance obligations in the revenue contract.
- Determine the transaction price.
- Allocate the transaction price.
- Recognize the revenue as performance obligations are satisfied.
For Zuora Revenue to automatically performs these steps to recognize the revenue, you must analyze your company's accounting policies and then configure Zuora Revenue properly to suit your business needs.