Core Revenue Records & Fields

The following document provides an overview of core records and fields required to enable the ZoneBilling Revenue module functionality.

Core Records:

• Subscription
• Revenue Configuration
• Subscription Item
• Item
• Revenue Order
• Revenue Detail
• Revenue Event
• Revenue Recognition Events

Subscription

Revenue treatment is defined at the Subscription level.

Each Subscription must be assigned a Revenue Configuration record under the Subscription Revenue subtab to allow data from the Subscription to be sent through the ZoneBilling Revenue module.

Revenue Configuration Record

The recommended best practice is to have a single Revenue Configuration, however, additional may be created for exceptional situations.

The Revenue Order Source selection defined on the ZAB Revenue Configuration will determine if the Subscription will result in one or more Revenue Orders upon executing the Update Revenue Details Process.

Revenue Configuration Field Map

ZAB Revenue Configuration Field Maps define how Charge data will be evaluated and transferred to the Revenue Detail during the Update Revenue Details Process. This results in Charges having a one-to-one or many-to-one relationship to Revenue Details.

Review the Out-of-the-box Revenue Configuration Field Maps to see what data will be mapped by default.

Subscription Item

In order to generate Revenue Details for a given Subscription Item, a Revenue Type must be assigned. This can be manually set on the desired Subscription Item, or inherited from the Item. If a Revenue Type is not set, the Subscription Item will not be processed through the ZoneBilling Revenue module.

The choices for Revenue Type are:

• Actual: The ZAB process will control the revenue impacting transactions in the ARM module and consequently any associated line items on Sales Orders & Invoices will have no revenue impact. (The 'Do Not Create Revenue Element' on the transaction line will be set to True. This field needs to be activated by request to Support in your environment.
• Forecast: The ZAB Revenue will decrease over time as the Charges are converted to billed transactions with Sales Orders & Invoices recording actual revenue. This option is often used to assist with Total Contract Value reporting.
• Inherit from Item: Will source the Revenue Type set on the Item record (most common selection). This option is especially helpful when a single Subscription Item generates Charges for an assortment of SKUs within the same period and not all are intended to be processed through the ZoneBilling Revenue module.

Item

There are multiple fields that need to be addressed on the Item record for successful revenue recognition with ZoneBilling Revenue.

Revenue Recognition details on Item record header

Revenue Recognition details under Item record > ZAB Settings > Revenue Recognition subtab

Fields to populate, unless stated as optional:

• Default Revenue Type (optional): A default Revenue Type can be set here and automatically sourced to Subscription Items when this Item is listed as the primary Item. If the primary Item on the Subscription Item is overridden via Charge Item Map or Usage table, ensure the additional Charge Items (e.g. multi-charge streams) have a Revenue Type set (when 'Inherit from Item' is the desired default).
• Revenue Type (2) (optional): This value will be used for ZoneBilling Revenue whenever the option of "Inherit from Item" is set on the Subscription Item.
• Revenue Recognition Event Type (optional): You can select a Revenue Recognition Event Type to source to the Revenue Detail upon creation. A Revenue Recognition Event Type must be set if the Item's 'Create Revenue Plans On' field is set to ZAB Quantity Based, ZAB Amount Based, or ZAB Percent Complete, otherwise leave this field blank.
• Revenue Recognition Rule: Be sure that the rule you select has an Amount Source that is appropriate for the value set on the Create Revenue Plans On field.
• Rev Rec Forecast Rule: Select a revenue rule to use for forecast revenue recognition plans. The default is determined by the same accounting preference as the Revenue Recognition Rule. You may select the same rule or a different rule for actual and forecast rules. Percent complete rules are not available as forecast rules.
• Create Revenue Plans On: When enabling ZoneBilling Revenue, you will be required to set up Custom Revenue Event Types for ‘ZAB RA Creation’ and ‘ZAB Billing’. These are the ZoneBilling counterparts to ARM’s ‘Revenue Arrangement Creation’ and ‘Billing’ respectively. Additional, optional values are defined below.
  • ZAB RA Creation: Revenue Plans are created when the Revenue Arrangement is created.
  • ZAB Billing: Revenue Plans are created when ZAB Billing revenue recognition events are associated with the Revenue Detail (i.e., one or more charges have been billed).
  • ZAB Quantity Based: Revenue Plans are created when ZAB Quantity Based revenue recognition events are associated with the Revenue Detail (i.e., one or more ZAB Revenue Events that are quantity-based are added to a Revenue Detail and Update Revenue Details has been processed).
  • ZAB Amount Based: Revenue Plans are created when ZAB Amount Based revenue recognition events are associated with the Revenue Detail (i.e. one or more ZAB Revenue Events that are amount-based are added to a Revenue Detail and Update Revenue Details has been processed).
  • ZAB Percent Complete: Revenue Plans are created when ZAB Percent Based revenue recognition events are associated with the Revenue Detail (i.e., one or more ZAB Revenue Events that are percent-based are added to a Revenue Detail and Update Revenue Details has been processed).

Note: Item settings for revenue configuration must align between Create Revenue Plans On, Revenue Recognition Event Type and Revenue Recognition Rules. The Amount Source of the Revenue Recognition Rule must align with the Create Revenue Plans on setting. Also, if Revenue Recognition Event Type is not null, the selection must align with both Create Revenue Plans On and Revenue Recognition rule.