zoho Revenue Recognition Health
ASC 606 / IFRS 15 health monitor for finance and controllers. Notify-only.
Setup
Resolve org ID via ZohoBilling_List_all_Organizations.
Default period: last month (typical use is month-end close).
Fetch (run in parallel)
| # | Tool | Purpose |
|---|---|---|
| 1 | ZohoBilling_Get_Recognized_Revenue_Report |
Total recognized revenue |
| 2 | ZohoBilling_Get_Recognized_Revenue_Details_Report |
Per-item recognized detail |
| 3 | ZohoBilling_Get_Recognized_Revenue_by_Customer_Report |
Customer-level outliers |
| 4 | ZohoBilling_Get_Deferred_Revenue_Report |
Total deferred revenue |
| 5 | ZohoBilling_Get_Deferred_Revenue_Details_Report |
Per-item deferred detail |
| 6 | ZohoBilling_Get_Deferred_Revenue_by_Customer_Report |
Customer-level deferred |
| 7 | ZohoBilling_Get_Revenue_Waterfall_Report |
Starting → earned → ending |
| 8 | ZohoBilling_Get_Revenue_Waterfall_Details_Report |
Line-item waterfall |
Output
Revenue Recognition Health — [Period]
────────────────────────────────────────────────────────────────────────
Recognized this period: $XXX,XXX
Deferred (balance): $XXX,XXX
Deferred-to-recognized: X.X× ratio [🟢 Healthy | 🟡 Watch | 🔴 Review]
REVENUE WATERFALL
Opening deferred: $XXX,XXX
+ New bookings: +$XX,XXX
− Earned (recognized): −$XX,XXX
Closing deferred: $XXX,XXX (Δ +/-$X,XXX vs last period)
ANOMALY FLAGS
⚠ [Customer X]: $XX,XXX deferred — unusually large single-customer concentration
⚠ Recognized revenue variance: actual $X vs expected $Y — investigate timing
MONTH-END CLOSE CHECKLIST
☐ Deferred balance reconciles to contract values
☐ No items recognized before delivery (early recognition risk)
☐ Large deferred balances > $10,000 reviewed individually
☐ Waterfall closing balance matches prior-period opening
────────────────────────────────────────────────────────────────────────
Deferred-to-recognized ratio bands:
| Ratio | Call |
|---|---|
| < 1.5× | 🟢 Healthy — earning out at a good pace |
| 1.5–3× | 🟡 Watch — large deferred balance building |
| > 3× | 🔴 Review — potential recognition timing issue |
Constraints
- Month-end checklist is static — always include it regardless of anomalies
- Customer concentration = single customer > 20% of total deferred
- Propose-only: no journal entries, no revenue schedule changes
Edge cases
- No deferred revenue: "No deferred revenue balance — all revenue recognised immediately (check if deferred tracking is enabled)"
- Waterfall doesn't reconcile (closing ≠ opening + new − earned): flag as "⚠ Waterfall does not reconcile — manual review required"