Premium Report - Unrecognized Revenue
Revenue Recognition reports are used for financial reports in accrual based accounting.
This article assumes you have a basic understanding of Revenue Recognition. You may want to refer to our other article, which covers what constitutes recognized revenue and when that revenue is recognized as part of our Revenue Recognition reports.
In this article, we're now going to look at the other half of the coin - Unrecognized Revenue. Revenue is considered unrecognized when:
- It's the sale of a line item AND the item is unfulfilled at the end of the report range = Yes
- It's shipping AND the order is unfulfilled at the end of the report range = Yes
- If the order has been cancelled, or none of the above apply = No
These reports cover all revenue that has yet to be recognized, and just like the Revenue Recognition reports, they can be viewed at either summary or detail levels.
As Premium Reports, these are available on all Paid Plans of Report Toaster. If you aren't signed up, follow these steps here to upgrade your account.
Lets start with the details first:
There are a few main terms to understand for Unrecognized Revenue reports.
1.) Is Revenue Unrecognized: This Filter setting looks only at Revenue that has been unrecognized (e.g. any sales of line items that are unfulfilled or shipping when the order is unfulfilled at the end of the report range).
For example, if a red ball from Order #1001 was sold on February 4th at 15:00, but was not fulfilled until March 1st at 09:00.
If the dates on the report ran until the end of February, then both the sale of the item and the shipping would count as unrecognized revenue and display on this report.
2.) Created at: When each order line was created. Because Unrecognized Revenue is only focused on item sales and shipping, then this will usually be the date + time of the order.
For example, if a red ball from Order #1001 was sold on February 4th at 15:00, the Created at field for the sale and shipping would show as 2/4/2023, 15:00:00 PM
3.) Type: The type for each line on the order. Only Sale and Shipping will count as Unrecognized Revenue on this report.
For example, order #1001 was for a single item that was shipped. There would then be 2 rows on the report, one for the sale of the item (Type = Sale) and one of the Shipping (Type = Shipping).
4.) Order fulfilled at: When the whole order is fulfilled. This is left blank for orders that aren't Fulfilled.
For example, on Order #1002, let's imagine our red ball has fulfilled on February 9th at 9.00 AM and our green ball is unfulfilled.
Because the whole order is not yet fulfilled, this field would be blank. Once the green ball fulfills the following day, then the Order Fulfilled at date will populate accordingly.
5.) Fulfilled at: When the individual Sale line item is fulfilled.
For example, on Order # 1002, our red ball has a Fulfilled at date of 2/09/2023, 09:00:00 AM and our green ball has a Fulfilled at date of 2/10/2023, 09:00:00 AM.
6.) Quantity: How many of a given line item were part of that order.
For example, on Order #1002, if there was 1 red ball as part of the order, then the Line Item Quantity would be 1.
7.) Fulfillable Quantity: How many of a given line item have yet to be fulfilled.
For example, on Order #1002, the red ball would have a Line Item / Fulfillable Quantity of 0 (as it has all been fulfilled).
The green ball, which was unfulfilled, would have a Line Item / Fulfillable Quantity of 1.
If you're looking for more of an overall summary, grouping all of your unrecognized revenue across multiple orders according to the rules (above) then check out our Unrecognized Revenue summary report:
Like all Report Toaster reports, these reports are fully customizable - so you can adjust the date range, add/remove columns, introduce a filter or change the sort to suit your individual needs. See our basic guides here for more info. For other premium reports that can be added to your account, check out our main guide here.
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