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Re: Why some Revenue Schedules are not reflected in Journal Run, no related Journal Entry?

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Why some Revenue Schedules are not reflected in Journal Run, no related Journal Entry?

Questions: Why some Revenue Schedules are not reflected in Journal Run, no related Journal Entry?

 

Take RS-00001749 as an example in my Invoice INV00000406, revenue was recognized upon invoicing on 2018 Nov. After running JR, couldn't find RS-00001749 in all Journal Entries.

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Zuora Support
Zuora Support

Re: Why some Revenue Schedules are not reflected in Journal Run, no related Journal Entry?

Root Cause:

During journal run, regarding "revenue event item" transaction type, it's little special for recognition rule "Recognize upon invoicing": if the invoice item meets below one of three criteria, the corresponding revenue schedule won't be picked up.

  1. The credit and debit accounting codes are the same in charge's Revenue Recognized the setting
  2. The credit Recognized Revenue accounting code is blank in charge's Revenue Recognized the setting
  3. The debit Deferred Revenue accounting code is blank in charge's Revenue Recognized the setting

With regarding RS-00001749, the credit and debit accounting codes in this charge are the same - "Training Accounting Code1".  As its Deferred Revenue and Recognized Revenue offset each other, no journal entry generated for it. That's the reason why RS-00001749 is not reflected in JR. (Re-distributing the revenue schedule, only impacts the revenue details report from the trial balance, no change in journal run)

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Recommended steps if you want to add this kind of revenue schedule into the journal run and couldn't cancel the corresponding invoice (Update the invoice item with different accounting codes).

 

1. Cancel the corresponding JR, where the invoice item locates.

In this example, JR is JR-00000043, where the invoice item with charge 'Recognize upon invoicing' locatesYou can also find the JR number based on the error message in mass updater result later.

 

To find out the JR number via DSE from "Invoice Item" Data Source:

Invoice Item - Charge Name, ID

Deferred Revenue Accounting Code - Name

Recognized Revenue Accounting Code - Name

Journal Entry - Number, Transaction Tye

Journal Run - Number: 

Filter - Invoice Number: 

JR number.png
2. Find out the invoice item ID, current Deferred Revenue accounting code and Recognized Revenue accounting code from above export. You can also double check the invoice item ID from "Revenue Schedule Item Invoice Item" data source by filter the revenue schedule number or Invoice number

In this example: 2c92c08567580c5e01675955309f7529, Training Accounting Code1, Training Accounting Code1


3. Update invoice item and make its credit and debit accounting code different via mass updater. (If there is any other error, please refer to the message in the result)

https://knowledgecenter.zuora.com/CC_Finance/Mass_Updater
https://knowledgecenter.zuora.com/CC_Finance/Mass_Updater/Update_Accounting_Codes

Mass updater.pngMass updater UI.png

 

You may meet below kind of error. If so, open an existing JE, replace the JE number in URL directly, then find out the corresponding JR number under Additional Fields. Then cancel this Journal Run.

/apps/JournalEntries.dox?method=view&number=JE-00000515 

This transaction has been included in a Summary Journal Entry (JE-00000515) and cannot be modified. To make changes, you would need to cancel the Summary Journal Entry.

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4. Export the above report again, to make sure the corresponding accounting code has been updated. In addition, there is no JR and JE linked to this invoice item.
5. Run the trial balance and Journal Run again in the corresponding account period. Now you are able to find out this revenue schedule from JE.


New JR.png

 



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