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Revenue Recognition Rule setting for IIA

Hello,

 
Can someone help me understand how these two options in revenue recognition rule setting will differ from each other?
 
For invoice item adjustments options
 
Use the Invoice Item Adjustment Service Period
Use the same Recognition Term from the Invoice Item (default)
 
 
Anyway, I created 2 revenue recognition rules with monthly recognition over time model by choosing these 2 options. Also, I created one subscription (12 months term w) with 2 charges (annual billing period) assigned with these 2 rules. I generated invoice on 4/7/17 and performed IIA in 8/14/17. I did not see any difference in revenue schedule.
 
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1 REPLY 1
Zuora Staff

Re: Revenue Recognition Rule setting for IIA

Hello Vasudeva

 

Jo from our internal finance group has already answered your internal question:

 

By default the IIA has the same service period as the II. Try changing the dates on the IIA and you should see a difference in the rev schedule.
 
And Yvonne from our support team has also answered your question in your ticket:

By default, when you create the IIA, its service period will be the same as invoice item, so no matter which rule settings you selected, it will have no difference.

However, when you create the IIA, you are able to change the service period:

If you changed the service period of the IIA, then the 2 options will show different result in revenue recognition.

Please test this and let me know if you have any further question.



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