You can view the Recognized revenue chart by heading to the Revenue Recognition section. This chart instantly allows you to see your revenue broken down into YTD revenue, recognized revenue and deferred revenue. It also shows your net cash flow. The data will be displayed based on the interval and date range that is selected.
The first of the five principles of revenue recognition codified in ASC 606 states that revenue can only be recognized once the goods or services have been provided to the customer. This chart will display the amount of revenue that was or will be recognized in each period in accordance with this principle.
In the data table of the revenue chart, you can find the following rows:
Year-to-date revenue - All the revenue of the current year that has been recognized up to and including the corresponding period.
Total Deferred revenue -Money that will be recognized in a given period as soon as that period closes (as of the time of viewing this chart).
This figure shows as "Deferred Revenue" in your monthly balance sheet for the corresponding period.
Net cash flow - Cash received from paid invoices, offset by refunds. Revenues from subscriptions, one-time and metered charges are all included. Credit card/transaction fees are not deducted.
Recognized revenue - Recognized revenue for the corresponding period.
Percentage change - The growth in recognized revenue (or change) vs the previous interval on the graph.
Each cell in the chart is clickable. Once clicked, the breakdown of the numbers will be displayed showing which customers are contributing to the values.
Working with multiple currencies
If you have transactions in multiple currencies, you can view your revenue recognition schedule in ChartMogul in any one of them. Simply select the reporting currency from the drop-down on the Recognized revenue and Revenue waterfall charts. You can view and export only one currency at a time.
Timeline and interval
You can select a time span that you want to analyze from the date drop-down at the top right. This allows you to review data in the past and in the future and conduct any needed analysis.
Furthermore, you have the option to change the interval reported in the chart and data table. You can toggle between month, quarter and year.
Exporting the data
You can export the data in the recognized revenue chart in 2 ways, summarized and detailed. You can read more about exporting the data in this article.
What you need to know:
- Invoice date is used to report Revenue Recognition, while transaction date is used for Net Cash Flow.
- Revenue Recognition reports open and successful transactions, while net cash flow reports only successful transactions
Not all items that contribute to the Net Cash Flow chart are used for Revenue Recognition:
- Revenue Recognition item types: non_recurring, setup_fee, subscription, prorate, add_on, usage_based, discount, balance_manual, refund
- Cash Flow Item types: non_recurring, setup_fee, subscription, prorate, add_on, usage_based, discount, balance, balance_manual, credit, carryforward, tax_excluded, refund
- Note that balance, credit, carryforward and tax_excluded are not included in the Revenue Recognition calculation