Accounting Close Prerequisites for Month-End Close in Zuora Billing

By Lana Lee posted 09-20-2023 14:45


Making the proper preparations for your month-end close process is an important step to avoid common mistakes and other pitfalls. In our September finance workshop Reviewing the Month-End Close Process, Enterprise Services Manager Monique Romero shared an overview of prerequisites one should take for month-end close for accounting close.


Accounting Close Prerequisites for Month-End Close

  1. Setup user permissions and roles
  2. Create accounting periods
  3. Creating chart of accounts
  4. Configure aging buckets
  5. Set up accounting codes
  6. Configure Segments and segmentation rule

Prerequisite 1: Setup Permissions and Roles

Zuora Billing Finance comes with two pre-configured roles, Administrator and Standard User. Customize your own roles to limit access for specific users.

Setup Permissions and Roles

Prerequisite 2: Create Accounting Periods 

Create accounting periods using the UI ( Z-Finance->Accounting Periods). Query and create accounting periods using the API.

Create Accounting Periods

Prerequisite 3: Configure Chart of Accounts

Chart of Accounts are configured in the UI. You can create and edit the chart of accounts using the UI (under Z-Finance->Chart of Accounts).

Configure Chart of Accounts

Prerequisite 4: Configure Aging Buckets

Aging buckets are configured in the UI. (Under Settings->Z-Finance Settings->Configure Aging Balance Settings).

  • The number of buckets and date ranges are configurable
  • Negative date ranges are supported
  • Negative invoices can be included in the aging report
Configure Aging Buckets

Prerequisite 5: Assign Accounting Codes

Recognized Revenue Accounting Code is the offsetting GL account to your accounts receivable account.

List of places to configure accounting codes:

  • Product rate plan charge
  • Z-Finance settings -> Manage Accounting Codes:
    • Invoice Payment
    • Payment Refund
    • Credit Balance
    • Tax
Assign Accounting Codes

Prerequisite 6: Configure Segment and GL Segmentation Rule

Segments and the GL segmentation rule allow you to create summary journal entries that are segmented across different business dimensions

  1. Segments in Zuora are the building blocks of the GL segmentation rule.
  2. The GL segmentation rule is a set of segments. Each segment is associated with an object field, so when you add a segment to the GL segmentation rule, the GL segmentation rule also becomes associated with that object field.
Configure Segment and GL Segmentation Rule

Review your Revenue Recognition Prerequisites

Before performing your month-end close, make sure your revenue recognition is prepared correctly. Check out the revenue recognition prerequisites to ensure that everything is squared away before you begin reviewing the month-end close process.

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