Happy Business Starts Here

Re: Why is Contract Asset a non-zero value while the invoice amount equals the revenue amount?

Zuora Documentation

Why is Contract Asset a non-zero value while the invoice amount equals the revenue amount?

Question:

Why is Contract Asset a non-zero value while the invoice amount equals the revenue amount?

1 REPLY 1
Highlighted
Zuora Documentation

Re: Why is Contract Asset a non-zero value while the invoice amount equals the revenue amount?

Answer:

Let’s consider the following example to explain it.

 

The ID of a sales order line is 1015274 and the total CV amount is $-500. RevPro created the initial allocation entry of the same amount ($-500). Then, this line is partially released by 79.99%. Now, the total allocation is $-400 while the initial entry of total allocation is $-500. The difference amount of $-100 will show in Contract Asset.

 

Solution:

To clear the Contract Asset amount in RevPro, release 100% of revenue on this line.

 

If you think this post is helpful, please click Kudos below.