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Zuora for Billing and Netsuite for Accounting; what Revenue Recognition system and process?

New Student

Zuora for Billing and Netsuite for Accounting; what Revenue Recognition system and process?

We have Zuora for billing management and are using Netsuite for Accounting.

 

Some polling questions for discussion:

 

1. What are you using everyone using for Revenue Recognition?

 

2. Zuora offers a connector to Netsuite? Has anyone put this in? 

 

3. Are you accounting for multiple element arrangements using either VSOE, TPE or BESP? If so, how are you passing subscription level information between Zuora and Netsuite? eg. Is there another system that sits in between? Are you using the NS rev rec module? straight journals from Zuora to NS and then handle VSOE offline in excel and book top-side adjustments?

 

Appreciate any thoughts you might have. 

3 REPLIES 3
Zuora Support Moderator

Re: Zuora for Billing and Netsuite for Accounting; what Revenue Recognition system and process?

1. From my perspective, I've seen customers run the gamut and depending on what they're doing, they've used everything from QuickBooks to larger ERP systems. Netsuite seems to be a popular choice.

 

2. I'm sure you've already taken a look, but I wanted to link these reference pages in case others have not seen them yet:

 

Hopefully we get some folks chime in to provide a sense of what they're doing. I'm curious as well. Smiley Happy



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Guru

Re: Zuora for Billing and Netsuite for Accounting; what Revenue Recognition system and process?

1. We handle all of our revenue recognition using Zuora. We have our rules setup and they map to the individual charges to allow different charges on a particular plan to be recognized differently. For example: Our main recuring subscription charges are recognized monthly over the term of the contract, but overages are recognized upon invoicing.

 

2. We did not use the connector to NetSuite as we preferred the simplicity of using Zuora as a true subledger and performing the integration via summary journal entries. We perform a nightly sync of cash transactions over to NetSuite using the API and we transfer the revenue recognition entries over at the period close.

 

3. I am by no means an expert in the nuances of Revenue Recognition (i defer to my accounting team), but I know enough to be dangerous ;-) I will say that by having the revenue recognition handled within Zuora, it remains very flexible. As I mentioned above, you can define differing recognition rules per charge in the system and you can even override the recognition rule on a per subscription basis if the need arises. The rules themselves are also very flexible allowing daily, monthly, invoicing, and manual recognition where you can distribute revenue in any way you choose. You can also use the API to allow custom code to perform revenue distribution if your needs are very specific.

 

There is also a Limited Availability feature for extensions to the platform which can customize the way revenue is recognized. One of the samples outlines a potential use case: https://knowledgecenter.zuora.com/DB_Integrations_and_Extensions/BA_Extension_Platform/Sample_Extens...

 

 

Cheers,
Jacob

New Student

Re: Zuora for Billing and Netsuite for Accounting; what Revenue Recognition system and process?

Thanks. I am using the connector (Z-Suite) which is the bridge between Zuora and NS.

 

You mentioned an API and custom code for distributing revenue - is that for handling multiple element arrangements?