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Renewal Impact of Single Charge with License and Maintenance

I attended the RevPro webinar today and I'm still unclear on how the renewal will behave.

 

Right now, we have 2 separate charges for a product.  1 is a one-time charge of $100 the license portion.  The customer downloads the software and has it perpetually.  The second charge is a recurring charge of $50 for the maintenance portion.  This covers support and any upgrades to the software.  We have these currently as separate charges because at renewal time we only renew the recurring maintenance portion.  We also manage renewals via Renewal Quotes in salesforce with Zuora CPQ.

 

Do we have to consolidate the 2 existing charges to 1 charge with RevPro?  If it is consolidated into 1 recurring charge that contains the license and maintenance portions, does the renewal quote in salesforce know only to renew $50 of the charge value that's associated with the recurring maintenance portion because of the RevPro rules that are configured?  Or would we still need to have these as separate charges in order to have that specific renewal experience?

1 REPLY 1
Zuora Staff

Re: Renewal Impact of Single Charge with License and Maintenance

Hi and thanks for joining the webinar!
 
They should remain two separate charges for RevPro purposes but I think it should be clarified that RevPro's ingestion of data will not change the way Salesforce is currently renewing charges.
 
For purposes of rev rec, there is no need to consolidate these two charges to one charge, you would just want a grouping identifier to ensure that they get linked to the same revenue contract. If the maintenance renewal should continue to be added to this original revenue contract, that renewal should also have a common attribute to link back. If it should be considered a new revenue contract, this can be accomplished by utilizing date filters in your grouping logic.