This article will examine how revenue is calculated on reports when using the "Revenue at Time of Purchase" (cash method) and "Revenue at Time of Use" (accrual method) filters.
Things to know:
- The "Revenue at Time of Use" and "Revenue at Time of Purchase" filters are visible on the following reports:
- If "Time of Purchase" is selected, a prepaid column will be displayed in reports. Services, classes, or products covered by a membership, package, or gift card will be excluded from the net revenue shown.
- If "Time of Use" is selected, the prepaid column will not be shown, as revenue is not counted until the membership, package, or gift card is used.
Revenue at Time of Purchase Filter
| Item | Gross Revenue | Net Revenue | |
| Services | Recognize at retail rate | Retail rate minus service discount | |
| Products | Recognize at retail rate | Retail rate minus product discount | |
| Classes | Recognize at retail rate | Retail rate minus class discount | |
| Membership fees | Recognize purchase | Recognize purchase minus discount | |
| Use of membership service/product/class credits | Retail revenue recognize from service/product/class | Subtract prepaid revenue | |
| Membership service/product/class discount | Retail revenue recognize from service/product/class | Retail rate minus membership discount | |
| Use of membership value credits | Retail revenue recognized from service/product/class | Subtract prepaid revenue (Portion that is used) | |
| Package with expiry - purchase | Recognize purchase | Recognize purchase minus discount | |
| Use of package with expiry - service credit | Recognize at the package item price | Subtract prepaid revenue | |
| Use of package with expiry - product credit | Recognize at the package item price | Subtract prepaid revenue | |
| Use of package with expiry - class credit | Recognize at the package item price | Subtract prepaid revenue | |
| Package without expiry - purchase | Recognize purchase | Recognize purchase | |
| Use of package without expiry - service credit | Recognize at the package item price | Subtract prepaid revenue | |
| Use of package without expiry - product credit | Recognize at the package item price | Subtract prepaid revenue | |
| Use of package without expiry - class credit | Recognize at the package item price | Subtract prepaid revenue | |
| Gift card purchase | Recognize purchase | Recognize purchase minus discount | |
| Use of gift card for Service/product/class | Retail revenue recognized from service/product/class | Subtract prepaid revenue (Portion that is used) | |
| Cancellation fees | Recognize in full | Recognized in full minus discount | |
| Environmental fees | Recognize in full | Recognized in full minus discount | |
| Refunds | Subtracted from gross revenue |
Revenue at Time of Use Filter
The Gift Card and Prepaid columns will be hidden
| Item | Gross Revenue | Net Revenue | |
| Services | Recognize at retail rate | Retail rate minus service discount | |
| Products | Recognize at retail rate | Retail rate minus product discount | |
| Classes | Recognize at retail rate | Retail rate minus class discount | |
| Membership fees | Recognize fees minus value credits. Ignore time period, i.e. even fees paid for the whole year are recognized immediately | Recognize fees minus value credits. Ignore time period, i.e. even fees paid for the whole year are recognized immediately | |
| Use of membership service/product/class credits | No impact on revenue | No impact on revenue | |
| Membership service/product/class discount | Recognize at retail rate | Retail rate minus membership discount | |
| Use of membership value credits | Retail revenue recognized from service/product/class | Retail revenue recognized from service/product/class | |
| Package with expiry - purchase | Recognize purchase | Recognize purchase minus discount | |
| Use of package with expiry - service credit | No impact on revenue | No impact on revenue | |
| Use of package with expiry - product credit | No impact on revenue | No impact on revenue | |
| Use of package with expiry - class credit | No impact on revenue | No impact on revenue | |
| Package without expiry - purchase | Recognize purchase | Recognize purchase | |
| Use of package without expiry - service credit | No impact on revenue | No impact on revenue | |
| Use of package without expiry - product credit | No impact on revenue | No impact on revenue | |
| Use of package without expiry - class credit | No impact on revenue | No impact on revenue | |
| Gift card purchase | Do not recognize (Gift Card column is hidden) | Do not recognize (Gift Card column is hidden) | |
| Use of gift card for Service/product/class | Retail revenue recognized from service/product/class | Retail revenue recognized from service/product/class minus discount | |
| Cancellation fees | Recognize in full | Recognized in full minus discount | |
| Environmental fees | Recognize in full | Recognized in full minus discount | |
| Refunds | Subtracted from gross revenue |
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