In order to view your Revenue Recognition Reports, they will need to be generated first. Click the Enable Revenue Recognition button to turn on Revenue Recognition. Generating your Revenue Recognition reports may take some time. You will receive an in-app notification when the process is complete.
You can configure how revenue for each product and component is deferred by opening the Revenue Deferral Settings window.
Products can be configured so that the Base Fee, Trial Fee and Setup Fee each have a different deferral setting. You can also choose a deferral setting for your components.
- Deferred - This option will distribute revenue over the entire service period.
- Immediate - This option will recognize revenue entirely at the beginning of the service period.
- Invoice line items - each invoice line item will be calculated separately based on the Revenue Deferral Settings.
- Discounts - Revenue recognition calculations will use the net amount after discounts are applied.
- Taxes - Taxes will not be included in the revenue recogition calculations.
You can select a pre-defined date range such as Current FY, or change the From and To. Click the View Results button to update the report.
You can choose with data row columns to include by using the Field Chooser buton in the upper-right hand corner of the table to open the Field Chooser modal window. You can include/exclude any available fields.
You can sort and filter row columns by clicking the sort or filter buttons in the header for that column.
You can download your report in Excel (xlsx) format by clicking the excel button in the upper-right hand corner of the table. Any sorting or filtering applied to the report will also be done in the downloaded file.
You can export your report as a CSV by clicking the Export CSV button. This will allow you to export your revenue recognition data on a transaction-level basis.
Revenue will be distributed evenly across the service period for each product/component. Partial months will be pro-rated on a daily basis.
For example: Let’s take a 3 month subscription with a service period of June 16th through September 15th for revenue in the amount of $300. June will receive only $50 of revenue (15 days out of 30). July and August both receive a full month’s worth of revenue of $100. September will receive the remainder of $50.
Note: Service periods in Chargify might show as June 16 to Sep 16. For Revenue Recognition purposes, revenue will be calculated one day less, from June 16 to Sep 15 to avoid double reporting of revenue upon renewal.
Note: Initial/Setup Fees will be recognized entirely at the start of the subscription.
Prepayments will not affect how revenue schedules are generated. Chargify will always use the service period for each product/component when generating revenue schedules.
The Revenue Report shows how much revenue can be recognized each month.
Given the example above, you might see the following on the Revenue Report.
The Balance Report shows the calculated Deferred Revenue balance at the end of each month. The Deferred Revenue balance will increase by the amount of the transaction on the transaction date. The balance will decrease as revenue is recognized at the end of each month.
Given the example above, you might see the following on the Balance Report.
|$250 ($300-$50)||$150 ($250-$100)||$50 ($150-$100)||$0 ($50-$50)|