SYSTEM AND METHOD FOR RECOGNIZING REVENUE AND MANAGING REVENUE LIFECYCLES

• US 20160239927A1
• Filed: 01/21/2016
• Published: 08/18/2016
• Est. Priority Date: 01/21/2015
• Status: Active Grant

• Current Assignee: Zuora Incorporated
• Original Assignee: Leeyo Software, Inc. (Zuora Incorporated)
• Inventors: Balsundaram, Jagan, Chilukuri, Seshagiri, Pearson, Katherine, Ramamoorthy, Karthikeyan
• Granted Patent: US 10,152,755 B2
• Time in Patent Office: Days
• US Class Current: 1/1
• CPC Class Codes: G06Q 30/018 Certifying business or products
• CPC Class Codes: G06Q 40/128 Check-book balancing, updating or printing arrangements

Abstract

A system and method for calculating variable consideration for performance obligations. The method can involve, checking a database for historical transaction data, accessing the historical transaction data, and applying one or more predetermined variable consideration rules to the historical transaction data. The method can include automatically analyzing the historical transaction data generating an analysis report based on the data. The method can include uploading predetermined corrections to variable consideration transactions to a database or other storage medium and applying the corrections to historical performance obligation transaction data. The method can include determining whether variable consideration changes should be applied to individual transaction lines within the variable consideration transactions.

Claims

1. A computer-implemented method of calculating variable consideration for performance obligations, the method comprising:

checking at least one database for the presence of historical transaction data;

accessing the historical transaction data;

applying one or more predetermined variable consideration rules to the historical transaction data;

analyzing the historical transaction data; and

generating an analysis report based on the analyzed historical data.

2. The computer-implemented method of claim 1, further comprising:

rendering the analysis report on at least one display of an electronic device;

determining, based on the analysis report, whether the predetermined variable consideration rules are to be applied to future transactions; and

upon such determination, uploading variable consideration estimates and actualized variable consideration values to the at least one database for subsequent retrieval.

3. The computer-implemented method of claim 2, wherein determining whether the predetermined variable consideration rules are to be applied to future transactions is at least partially based on information manually entered using a keyboard.

4. The computer-implemented method of claim 1, analyzing historical data is based, at least in part, on predefined stratification parameters.

5. A system for calculating variable consideration for performance obligations, the system comprising:

at least one data base;

at least one processor in signal communication with the database;

at least one memory in signal communication with the processor, the memory storing computer-executable instructions, which, upon execution by the processor, cause the processor to;

check the at least one database for the presence of historical transaction data;

access the historical transaction data;

apply one or more predetermined variable consideration rules to the historical transaction data;

analyze the historical transaction data; and

generate an analysis report based on the analyzed historical data.

6. The system of claim 5, wherein the memory further stores instructions to cause the processor to:

render the analysis report on at least one display of an electronic device;

determine, based on the analysis report, whether the predetermined variable consideration rules will be applied to future transactions; and

upon such determination, upload variable consideration estimates and actualized variable consideration values to the at least one database for subsequent retrieval.

7. The system of claim 6, wherein determining whether the predetermined variable consideration rules are to be applied to future transactions is at least partially based on information manually entered using a keyboard.

8. The system claim 5, wherein the memory further stores instructions to cause the processor to:

analyze the historical data based, at least in part, on predefined stratification parameters.

9. A computer-implemented method for analyzing variable consideration for performance obligations, the method comprising:

uploading one or more predetermined corrections to variable consideration transactions to at least one non-transitory computer-readable storage medium;

applying the one or more corrections to historical performance obligation transaction data; and

determining, based at least in part on predetermined variable consideration rules, whether variable consideration changes should be applied to individual transaction lines from within the variable consideration transactions.

10. The computer-implemented method of claim 9, further comprising:

applying the variable consideration changes to individual transaction lines; and

retrospectively or prospectively accounting for all changes to the individual transaction lines.

11. The computer-implemented method of claim 9, further comprising:

posting accounting entries; and

reporting changes made to the transactions lines according to the predetermined variable consideration rules.

12. The computer-implemented method of claim 9, wherein the posted accounting entries are time-stamped.

16. The computer-implemented method of claim 9, wherein the posted accounting entries are time-stamped.

13. A system for automatically analyzing variable consideration for performance obligations, the system comprising:

at least one data base;

at least one processor in signal communication with the database;

at least one memory in signal communication with the processor, the memory storing computer-executable instructions, which, upon execution by the processor, cause the processor to;

upload one or more predetermined corrections to variable consideration transactions to the least one database;

apply the one or more corrections to historical performance obligation transaction data of the database; and

determine, based at least in part on predetermined variable consideration rules, whether variable consideration changes should be applied to individual transaction lines within the historical performance obligation transaction data.

14. The system of claim 13, wherein the memory further stores computer-executable instructions to cause the processor to:

apply the variable consideration changes to individual transaction lines; and

retrospectively or prospectively account for all changes to the individual transaction lines.

15. The system of claim 14, wherein the memory further stores computer-executable instructions to cause the processor to:

post accounting entries to one or more remote electronic devices; and

report changes made to the transactions lines according to the predetermined variable consideration rules to one or more client devices.

17. A computer-implemented method of recognizing revenue in compliance with generally acceptable accounting procedures, the method comprising:

identifying one or more contracts for analysis;

identifying one or more performance obligations associated with the one or more contracts;

determining transactions costs associated with the one or more performance obligations;

assigning a fair value to transactions associated with the one or more performance obligations;

allocating transactions costs to the transactions associated with the one or more performance obligations according to their fair value;

recognizing revenue associated with the transactions;

posting the recognized revenue to at least one database; and

reporting the recognized revenue to at least one client device.

18. The computer-implemented method of claim 17, wherein identification of performance obligations includes at least one of:

creating performance obligations, applying variable consideration to one or more of the transactions, calculating other costs associated with the performance obligations, and forecasting future variable consideration or future performance obligations, or both.

19. The computer-implemented method of claim 17, wherein recognizing revenue includes releasing recognized revenue or accounting for recognized revenue, or both.

20. The computer-implemented method of claim 17, wherein identifying contracts includes grouping of transactions.