Similar to native ARM where the Revenue Arrangement and Revenue Element reflect the same currency as the source transaction, in ZoneBilling Revenue the Revenue Order and Revenue Detail will reflect the same currency as the Subscription and source charges.
The Revenue Detail reflects:
- Currency: This field contains the currency of the Subscription (sourced from the associated charges).
- Revenue Date: This is blank by default. If populated via mapping in the Revenue Configuration, this date will be used to determine the ‘Exchange Rate’ on the Revenue Detail.
If a mapping to ‘Revenue Date’ is needed, it should be a Minimum or Maximum Summary Type, not a Group By, in order to not impact charge grouping. It is generally recommended to map a value to ‘Revenue Date’ to help solidify the client’s understanding for the date in which the Exchange Rate is sourced.
- Exchange Rate: This field will be populated with the corresponding exchange rate between the subsidiary’s base currency and the Revenue Order currency for the relevant accounting book. The Exchange Rate for a Revenue Detail is determined as of its ‘Revenue Date’. If no ‘Revenue Date’ is populated on the Revenue Detail, the Exchange Rate will be determined as of the Revenue Order ‘Date’.
Based on the date logic above, the Exchange Rate will be looked up using NetSuite’s native Fx table for the specified date and currency combination.
- Plan Currency: For non-multi-book environments, this will be the base currency of the Subsidiary. In multi-book environments, this will be the base currency of the Subsidiary if the ZAB Revenue Detail is associated with the Primary Accounting Book. Otherwise, it will be the Base Currency of the associated Secondary Accounting Book.
The Revenue Order reflects:
- Currency: This field is populated with the Currency assigned to the Subscription.
- Date: This field is populated by the Minimum Revenue Detail Start Date upon creation of the Revenue Order.
- Exchange Rate: The Revenue Order Exchange Rate will be set based on the ‘Date' of the Revenue Order. This field will be populated with the corresponding exchange rate between the Subsidiary’s base currency and the Revenue Order currency for the relevant accounting book, utilizing NetSuite’s native Fx table.
If ‘Revenue Date’ is populated on the Revenue Detail, the ‘Date’ and ‘Exchange Rat’e on the Revenue Order will not apply to the Element created from that Revenue Detail. The Revenue Order ‘Date' and ‘Exchange Rate’ will only be used for Elements where the ‘Revenue Date’ on the Revenue Detail record is blank.
To summarize, the Exchange Rate for a Revenue Element is determined by:
- The ‘Revenue Date’ on the source Revenue Detail record
- If the ‘Revenue Date’ is blank, the Revenue Order ‘Date’ is used, which reflects the minimum Revenue Detail Start Date upon creation of the Revenue Order.
Once the appropriate trigger(s) have occurred based on the ‘Create Revenue Plans On’ setting on the item record, the associated Revenue Plan(s) will be generated. The Revenue Plan will be in the base currency of the subsidiary for the accounting book utilizing the exchange rate from the Revenue Detail and/or Revenue Order. A single exchange rate is utilized for all plans for the associated Revenue Elements.
Differences in Fx between the Revenue Plan (and the associated Revenue Recognition Journal Entries) and the related GL Impacting sales transactions are handled as part of the month-end Deferred Revenue Reclassification processes, resulting in a Foreign Currency Adjustment journal entry.
For more information on Foreign Currency Adjustments, see SuiteAnswer 88736. For more information on ZoneBilling Revenue, see ZoneBilling Revenue: Core Records & Fields. For more information on foreign currency handling in ARM, see Foreign Currency Revenue Elements & Plans.