You can access the report be selecting the Insights tab, and then Finance Report on the left side of your screen.
Select “Crunch my nums now!” to create the report. It can take upwards of 1 hour to create the report. You only need to generate the report once.
The Finance Report provides financial accounting data for your Chargify-based business broken down on a month-by-month basis. The information you’ll find will include your monthly revenue in a format suitable for your accountant.
After transactions or changes to subscriptions have been made, it can take a few moments for the finance report to update. In most cases, changes will be instantaneous. Otherwise, please wait up to 5 minutes for the data to reflect recent changes.
This report follows accrual-basis accounting. For this report, this means:
- Sales are listed in the month payment becomes due (at the time of signup or renewal), whether or not payment has been received
- Payments are matched up with their Sales and listed in the month of the sale they pay, not the month they are received.
This way, you can measure your monthly performance in terms of total sales and track how much you are still waiting to receive in a month.
For a brief overview of what the Finance Report offers, we recommend viewing an archived copy of our webinar that was showcased upon release of the feature. You can access the video below:
There are three main sections:
- Total Billed
- Payments and Collections
Your Total Billed is:
Total Billed = Sales - Discounts + Taxes - Credits/Voids
If you do not collect Taxes, your Total Billed will be the same as your Revenue.
Sales is revenue from all sales, before discount or credit, on an accrual basis - the sales are listed in the month in which payment became due, not when payment was received.
Sales are further broken down into the following categories:
- Recurring Plans: Revenue from subscriptions (of any frequency).
- One Time: One-time revenue charges.
- Add Ons: Revenue from on/off and quantity-based components and add-ons.
- Usage: Revenue from metered usage components.
- Setup Fees: Revenue from setup/initial fees.
- Trial Fees: Revenue from paid trials.
- Other: Other revenue.
These are discounts or deductions applied to sales according to Chargify coupon/discount logic.
Discounts are further broken down into the following categories:
- Single-Use Coupons: Discounts from coupons that are only applied once.
- Multi-Use Coupons: Discounts from coupons that are applied to several billings but eventually fall off automatically.
- Recurring Coupons: Discounts from coupons that are applied at every billing (until they are manually removed).
- Other Coupons: Discounts from coupons whose lifetime/limits cannot be determined.
- Referrals: Discounts from refer-a-friend discounts.
These are reductions to revenue from service credits, balance adjustments, and voids. These reduce the amount your customers owe.
Credits are further broken down into the following categories:
- Proration: Reductions to revenue from prorations. Note that Sales may potentially include the full recurring charge twice in a period, because any prorated amounts/reductions are shown here.
- Balance Adjustments: Reductions to revenue from balance adjustments, such as service credits, balance resets, or voids.
Your (Gross) Revenue is your Total Billed minus the taxes you collected. It is not necessarily how much you have actually been paid.
Your Net Revenue is your Revenue minus any Refunds given in the period.
Note: Revenue appears in the month the invoice/statement was issued. For example, when an invoice has net terms set, revenue will show as received at the issue date, even if the invoice is due at a later time.
Refunds appear in the month the refund was given. So, if you bill a customer $100 for your service in January and then refund them $100 in February before they are billed again, you will see $100 in January Revenue and -$100 in February Revenue.
Since this report follows accrual-basis accounting principles, payments are matched up with the sale they pay and listed in the month of the sale, not necessarily the month payment was received.
Payments are the amounts you have received against the Total Billed. These includes actual payments (from credit cards, checks, ACH, etc.) as well as deferred payments from Prepayments.
- Automated Payments: Payments received from automatic billing by Chargify, which is usually either from credit cards or ACH.
- Check/Invoice Payments: Payments recorded manually in Chargify, such as check payments for invoices.
- Amortized Prepayments: The amount applied to this period’s billings from Prepayments (i.e. a large up front check payment that is amortized and split among each period’s billings).
The report also lists “Expected Payments”. This includes payments not yet received but that are still expected to arrive. These fall into two categories:
- In Dunning: The amount under active dunning managed by Chargify. Moves to Uncollected if dunning ends without capturing payment.
- Unpaid Invoices: The amount due on open invoices. (i.e. non-automated billing collection methods).
From your Total Billed, Payments, and Expected Payments, we derive the “Uncollected” amount for each month in the report. This is calculated as your Total Billed minus your Payments and Expected Payments. In other words, this is the amount that you billed but have not received nor expect to receive via dunning or open invoice.
Note: If you reset the balance due on a subscription that is included here, that balance will move from here to Credits and decrease Revenue.
The values displayed in this report follow a financial-style formatting:
- Only the subtotal and total rows include the currency symbol:
- A regular data row displays
- A subtotal or total rows displays
- A regular data row displays
- Negative amounts are wrapped in parentheses:
-$10.00would be shown as
The original release of the Finance Report predates Relationship Invoicing. Because of this, some concepts in Relationship Invoicing didn’t map well to the original Finance Report. We’ve rebuilt the Finance Report tailored to Relationship Invoicing. Below are a list of enhancements and addressed issues.
Add Ons and Usage are splitted into the below categories for better granularity:
- On/Off: Revenue from on/off components.
- Quantity-Based: Revenue from quantity-based components.
- Metered: Revenue from metered usage components.
- Prepaid Usage: Revenue from prepaid usage components.
- Event-Based: Revenue from event-based components.
Credits are better tagged which allows to divide them into the following categories:
- Service Credits: Reductions to revenue from service credits.
- Proration: Reductions to revenue from prorations.
- Refund Credits: Reductions to revenue from refunds which were credited to the invoices.
- Voids: Reductions to revenue from part and fully voided invoices.
- Other: Reductions to revenue from other credits (e.g. credits which were granted as a result of backporting).
Refunds are moved to Payments section and Net Revenue is deprecated.
By rearranging Refunds into the Payments section, we have new categories which better reflect real income:
- Total Collected: Sum of all collected payments.
- Refunded: The amount refunded towards previously received payments. To maintain consistency with payments, refunds are matched up with the sale and listed in the month of the sale, not necessarily the month refund was received.
- Total Collected: Payments after refunds are deducted.
This section now includes a category for invoices in collections.
- In Collection: The amount refers to subscriptions that have failed dunning but have open remittance invoices. Exists only in new finance report.
The Finance Report for Relationship Invoicing supports multicurrency. You can see your Finance Report segmented by one currency at a time.
You can export the data displayed in your Finance Report as a CSV by clicking on the “Summary” option in the Export menu. A complete listing of the data contained in this CSV can be found in our export documentation..
Similar to other exports, the CSV file will appear shortly in your list of Downloads.
You can also export a more detailed Finance Report CSV by month. Simply click on the Export button and then choose the month you wish to export:
This CSV follows a format that is slightly different than what is shown in the web-based Finance Report. It contains all of the data needed to recreate the web-based report, plus extra data that allows you even more insight. When imported into a spreadsheet application (such as Google Sheets), it will look like this:
For a complete listing of the data contained in this CSV, please view the Finance Report section here in our Exports documentation.
Chargify has generated finance reports on your behalf that date back to the date your account was created within the system. However, the finance report itself - which contains totals and is displayed on screen - is limited to one year’s data.
The CSV contains all of the data you need to see your revenue in the way that works best for you. This means that some data is repeated from row-to-row, so you may need to use filters or sorting in some cases to avoid double-counting.
The columns that have repeated data and context-sensitive meaning are the following (note: a full list of columns and their descriptions follows in the next section):
For lines in the “Sales” category, this field gives the amount of discount that was applied to just that line.
For lines in the “Discounts” category, this field gives the total discount attributed to a particular coupon that may have been spread across multiple sales lines.
This way, you can filter out Discount lines to see just how much each of your Sales lines was discounted, or you can include Discount lines to see how much discount is attributed to each coupon.
For lines in the “Sales” category, this field gives the amount of tax that was applied to just that line.
For lines in the “Taxes” category, this field gives the total tax attributed to a particular tax configuration that may have been applied across multiple sales lines.
This way, you can filter out Tax lines to see just how much each of your Sales lines was taxed, or you can include Tax lines to see how much tax was charged by each tax “rule”.
For lines in the “Sales” category, this field gives the amount of credit (i.e. non-cash adjustment that reduced the amount billed, such as a service credit) applied to just that line.
For lines in the “Credits” category, this field gives the total credit amount from a particular Adjustment transaction that may have been spread across several Sales lines.
You may filter out Credit lines to see just how your individual sales were affected by credits, or you can include Credit lines to see why (via the memo) credits were being applied in the first place.
For lines in the “Sales” category, this field gives the amount that has been paid on that particular line. An amount of 0 means that line has not been paid in totality or in part. An amount that is 100% of
billed_amount means the line is fully paid. An amount between 0% and 100% of
billed_amount indicates a partial payment for the line.
For lines in the “Payments” category, this field gives the total payment amount from a particular Payment transaction that may have been spread across several Sales lines.
You may filter out Payment lines to see just how your individual sales have been paid, or you can include Payment lines to see which payments have been received.
The following spreadsheet shows some of these concepts in action:
In the blue box, you can see that a $29.90 discount (#1) was applied to the Pro Plan Recurring Plan line, and $3.26 discount (#2) was applied to the Widgets Add On line. In all, this amounted to a discount of $33.16 (#3) on this sale, which came from the coupon with ID
40276 and the name “10% off the lifetime of your subscription”.
In the green box, you can see that the total billed amount of $269.10 has been paid (#4) on the Pro Plan Recurring Plan line. Also, the total billed of $29.34 has been paid (#5) on the Widgets Add On. This was captured in a single payment of $298.44 (#6) with transaction ID
You can download our example CSV file to take a look!
Products that have recurring intervals of more than 1 month (i.e. annual products) will display all of their revenue in the month the sale hits instead of being spread out over several months. Spreading out the revenue into subsequent months is usually referred to as “Revenue Recognition” - we have a separate report built for this information, our Revenue Recognition suite.
If you’d like to use the Finance Report specifically for revenue recognition, there are a couple of workarounds:
If a subscription renews monthly, you can apply a large manual payment that covers several months. This is referred to as a “prepayment”, and displays in the Finance Report according to monthly revenue recognition rules: each month, the subscription bills for a single month and consumes a month’s worth of the prepayment. The revenue shown in the Finance Report will be the amount for one month.
This works most easily when your customer pays you via check. You can achieve a monthly subscription with a Prepayment by creating a subscription with Invoice billing and no credit card on file. Then, you’d enter the prepayment check as a manual payment.
In the CSV export, there is a column called “Period” which gives the recurring period of the line item. You can use this to track revenue recognition yourself by doing the math to back out the unrecognized portion and then recording and applying the “carryforward” amounts yourself.
For example, say you see a $1200 sale in January with a “12m” (12 month) recurring period. You know this equates to $100/mo, so you could subtract out the unrecognized portion of $1100 (for the remaining 11 months) from January and carry that forward as $100/mo for February through December.
If you experience a lack of credit notes for sales items from fully voided invoices, then you can use new functionality which ensure that offsetting credit will be applied to all historical and new voided invoices. You can enable this behavior via the invoice settings page. See the documentation for more details.