Earned Revenue by Month Report

This Help File Page was last Modified on 03/27/2018

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Earned Revenue by Month Report

This Help File Page was last Modified on 03/27/2018

Earned versus Deferred Revenue is a somewhat complex concept.

Basically, within the context of generally accepted accounting procedures, every Sales Invoice that is issued would normally be considered "earned" when it is created.

However, in the case of Recurring Revenue, those Invoices are frequently not "earned" when they are "billed" to the Subscriber.

This is because the Invoices for this Recurring Revenue are Created, and often Dated up to a month in advance of when the billed Period of Service, for which they are being Invoiced, actually begins.

See the Deferred Revenue Report chapter for more information on this concept.

 

1.That Deferred Revenue Report computes the Deferred Recurring Revenue that existed as of a User specified Date

That Deferred Revenue Report uses the Bills in Advance Company Setting option, the Sale Date on the Recurring Revenue Invoice, and the Billing Cycle Starting Day (which is defined in the Billing Cycle record) to determine when Recurring Revenue is Deferred before it is Earned within any Month.  

2.This Earned Revenue by Month Report tells your Company how much of that previously Deferred Revenue has subsequently been Earned in the specified Month (or Year).

It will itemize the Amounts of the previously Deferred Revenues that have now been earned during the chosen Accounting Period (e.g, within either a designated Month, or a designated Year)

It will be provided in either a Detailed, or a Summarized format, as requested by the User.

It also uses the Billing Cycle Starting Day  (which is identified in the Billing Cycle record) to determine when Recurring Revenue is Earned within the Month.  

For Subscribers who are billed Annually and received One Month Free for paying Annually:

If they are Bill a Month in Advance: the -1 Quantity (the Free Month) gets "earned" in the first month of the actual service coverage period.

Otherwise the -1 Quantity (the Free Month) gets "earned" in the month of the Sale Date.

For General Ledger System Users, the associated General Ledger Accounts, and the Earned Revenue Values for each, are included in this Earned Revenue Report.

 

For General Ledger System Users - When a Recurring Revenue Item is billed automatically, the question is:

When is the Recurring Revenue Earned for the First Month of the Period of Service being billed, and when is that First Month's Recurring Revenue Deferred to the next Month?

a)When the Auto Billing Sale Date entered is within the First Month of the Period of Service being billed, and the Starting Day - which is identified in the Billing Cycle record - is the First day (i.e., '1') of the Month and Year of the Period To Bill chosen in the Auto Billing dialog, the First Month is Earned and posted on the last day of that First Month using Post Deferred Revenue procedure);

b)Otherwise, that First Month's Recurring Revenue is Deferred until the next Month as described below (these are the only other possible cases):

i.The Auto Billing Sale Date entered is dated within the Month before the First Month of the Period of Service being billed (i.e., your Company Bills in Advance) and the Starting Day - which is identified in the Billing Cycle record - is the First day (i.e., '1') of the Month and Year of the Period To Bill chosen in the Auto Billing dialog, therefore the Recurring Revenue is Deferred to the next Month after Sale Date (which in this case is actually the First Month of the Period of Service being billed);

ii.The Auto Billing Sale Date entered is dated on or after the First day of the First Month of the Period of Service being billed, but the Starting Day - which is identified in the Billing Cycle record - is Not the First day (e.g., it is 2...31) of the Month and Year of the Period To Bill identified in the Auto Billing dialog, so the Recurring Revenue for this First Month of the Period of Service being billed will not be fully earned until the next Month, therefore the Earned Recurring Revenue for this First Month is Deferred to the next Month.

c)Earned Revenue is always posted to the General Ledger System  - using the Post Earned Revenue process - on the Last Day of the selected Month being posted, whether that process is run at the end of the Month and Year being posted, or in a subsequent (later) Month.

 

There are two ways to access the Earned Revenue Report dialog:

a)From the Backstage Menu System Select Reports and Choose Receivable Reports, or

b)From the Quick Access Menu, Select Reports and Choose Receivable Reports.

Then, Select the Earned Revenue by Month option.

 

Earned Revenue tabs - There two three tabs on the Earned Revenue dialog.

Options - Initially only the Options tab is shown (until you make your Options selections and Select Print).

 

HelpFilesEarnedRevenueReport-OptionsTab

Earned Revenue by Month Report - Options tab

 

Report Type - Choose either a Detailed, or a Summarized format

Detail - Click this button to view a report formatted as shown immediately below:

 

HelpFilesEarnedRevenueReport-PreviewTab

Earned Revenue by Month Report - Preview tab - Detail for One Month

 

Summary - Click this button to view a report formatted as shown immediately below:

 

HelpFilesEarnedRevenueReport-PreviewTab-Summary

Earned Revenue by Month Report - Preview tab - Summary for One Month

 

Sales Code(s) - Specify whether All or one Recurring Revenue Sales Category will be listed.

All is the default, but you may Click the One button and use the Drop-Down Selection List provided to Choose one Recurring Revenue Category to be reported.

 

HelpFilesEarnedRevenueReport-SalesCodesOption

 

Report Period - Choose whether a One Month or One Year is to be reported

By default One Month is selected and the Date Range representing the most recently completed Month is inserted automatically.

 

HelpFilesEarnedRevenueReport-DateRange

 

One Year - If this will be an annualized report, Click the One Year button.

If One Year is selected, the Date Range representing the most recently completed Year is inserted automatically.

 

HelpFilesEarnedRevenueReport-PreviewTab-SummaryByYear

Earned Revenue by Month Report - Preview tab - Summary for One Year

 

Date Range - Then, whether reporting for One Month or One Year, if it will be different than the default (i.e., the most recently completed Month or Year based on whether One Month or One Year was chosen), identify the Date Range to be used by entering the Start Date and End Date of that Date Range using the Drop-Down Date/Calendar Selection Boxes provided.

 

Do you Bill in Advance of Month? - Check this box unless the Sale Date - of the Invoices created for Recurring Revenue Invoices falls within the actual time period in which the service(s) being billed will actually be provided

 

Division - By default all Earned Revenue from all Divisions and Division Groups will be reported

To limit this Earned Revenue Report to listing those Earned Revenues from one Division or Division Group only, use the Drop-Down Selection List provided to Choose that Division or Division Group.

 

Print - Click the Print button HelpFilesPrintButton to Preview and optionally Print this Earned Revenue Report.

To Exit this Report dialog, Click the Cancel button HelpFilesReportDialogCancelButton toward the bottom of the Options tab.

 

Preview - The Preview tab presents the report which resulted from the Options you've selected.

Up Arrow/Down Arrow - hi - Moves the report one line up, or one line down, respectively.

Page Up/Page Down - Moves the report to the previous or next page, respectively.

 

HelpFilesEarnedRevenueReport-PreviewTab

Earned Revenue by Month Report - Preview tab - Detail for One Month

Home - HelpFilesHomeKey- Using either the screen Icon or your Keyboard's Home key, moves the report to the top of the first page.

End - HelpFilesEndKey- Using either the screen Icon or your Keyboard's End key, moves the report to the bottom of the last page.

Arrows - The arrows allow you to move back and forth, from page to page.

Number - Indicates the page number you are viewing.

You may also type in a specific page number, Press 8 Enter and that page will be displayed immediately.

If you enter an invalid page number, it will be ignored.

Fit To Page - Click the first button after the arrows to size a full page of the report to fit the screen.

Zoom To 100% - Click the second button after the arrows to display the page at 100% (of the printed view).

Fit To Page Width - Click the third button after the arrows to size the page of the report to fit the full width of the screen.

Zoom To Percentage - Click the fourth button after the arrows to re-size the page of the report by percentage.

 

HelpFilesPercentageOfViewAdjuster

When you Click the Zoom To Percentage button, the Percentage selector will be displayed.

You may then Click the Up  or Down arrow to set the exact amount of Zoom you want.

 

HelpFilesEarnedRevenueReport-PreviewTab-Summary

Earned Revenue Report - Preview tab - with Summary Recap and GL data

 

Print - Click the Print button to Print (to a File or a Printer) HelpFilesPrintIconthe displayed Earned Revenue Report.

See Printing to a File for additional information ion how to save this report in several different file formats.

Email - Click the Email button HelpFilesEmailButtonto send the Report to an Email Address of your choosing.

To Exit the Preview tab and Close this Report dialog Form, Click the Close box HelpFilesCloseBoxon the right at the top of the Preview tab.