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 appear in the reports. Revenue from services, classes, or products covered by a membership, package, or gift card will be recorded in the prepaid column and excluded from the net revenue calculation.
- If "Time of Use" is selected, revenue from gift card, membership, and package sales will not be displayed (these columns will be hidden), and the prepaid column will be hidden. However, revenue from services, classes, or products redeemed through memberships, packages, or gift cards will be shown and included in the gross and net amounts after deducting discounts and refunds.
- If "Time of Use Legacy" is selected, the gift card and prepaid column will not be shown. Revenue will only be displayed when the gift cards, memberships, and package credits are redeemed for a product, class, or service, but will not count as revenue when the prepaid is initially purchased.
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, Package, Membership 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 | Do not recognize (Membership column is hidden) | Do not recognize (Membership column is hidden) | |
| Use of membership service/product/class credits | Retail revenue recognized from service/product/class | Retail revenue recognized from service/product/class | |
| 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 | Do not recognize (Package column is hidden) | Do not recognize (Package column is hidden) | |
| Use of package with expiry - service credit | Retail revenue recognized from service | Retail revenue recognized from service | |
| Use of package with expiry - product credit | Retail revenue recognized from product | Retail revenue recognized from product | |
| Use of package with expiry - class credit | Retail revenue recognized from class | Retail revenue recognized from class | |
| Package without expiry - purchase | Do not recognize (Package column is hidden) | Do not recognize (Package column is hidden) | |
| Use of package without expiry - service credit | Retail revenue recognized from service | Retail revenue recognized from service | |
| Use of package without expiry - product credit | Retail revenue recognized from product | Retail revenue recognized from product | |
| Use of package without expiry - class credit | Retail revenue recognized from class | Retail revenue recognized from class | |
| 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 | |
| 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 (Legacy) 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 | |
| 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 |
For more information, contact us at support@mytime.com or (385) 233-6964.
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