Revenue at Time of Purchase (Cash Method) & Revenue at Time of Use (Accrual Method) on Reports

Modified on Thu, 9 Jan at 9:36 AM

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

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 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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