Example 1 - SO release upon booking
The initial SO line of $100 is uploaded to Zuora Revenue with a release event upon booking, impacting the accounting entries.
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 | ||
| Impact | Balance | |||||
| Account type | Dr | Cr | Account type | Dr | Cr | Initial Entry Flag |
| Contract Liability | 180 | Contract Liability | 180 | Y | ||
| Balance | |||
| Account type | Dr | Cr | Note |
| Contract Liability | 180 | SO reverse | |
| Revenue | 180 | SO reverse | |
| Contract Liability | 180 | Invoice recognized | |
| Revenue | 180 | Invoice recognized | |
| Impact | Balance | |||||
| Account type | Dr | Cr | Account type | Dr | Cr | Initial Entry Flag |
| Contract Liability | 100 | Contract Liability | 80 | Y | ||
| Impact | Balance | |||||
| Account type | Dr | Cr | Account type | Dr | Cr | Note |
| Revenue | 100 | Contract Liability | 80 | Billed revenue | ||
| Contract Liability | 100 | Revenue | 80 | Billed revenue | ||
| Revenue | 100 | Revenue | 100 | Unbilled revenue | ||
| Contract Liability | 100 | Contract Liability | 100 | Unbilled revenue | ||