Happy Business Starts Here

Valued Scholar

Revenue Recognition based on Initial Term

Hi,

 

Customer wants to use Initial Term as based of revenue recognition. Customer is offering Annual plan with 2 year contract. Customer is not using Salesforce, its Zuora UI only.

 

Question : what is the best way to forcast/view revenue for second year? Running billing in advance to genrate Invoice for second year is an option.

 

Is there any other option?

 

Note : Term start date may not be the same as Contract Effective or Service Activation date. Customer acceptance is not in use.

 

Regards,

Chirag