Calculate Initial and Monthly Revenue Recognition


The revenue that you recognize at the time of a membership sale is referred to as the Initial Revenue Recognition.

The revenue that you recognize through out the valid period is Monthly Revenue Recognition.

If we sell a membership with zero credit value or credit value less than the price , revenue does not show up in the revenue reports. 

  • A new flag is added at membership level to indicate whether the recognition of revenue happens once at the time of sale or linearly throughout the validity period (based on expiry days) .




1) Initially revenue recognition calculation: 

  • If we enable initial recognition,then the revenue reports will automatically update after the membership sale is closed.

    Ex:If membership credit amount is 0/- and membership price is 10000/- then ,after the invoice is closed ,10000/- will update in all revenue reports under Membership redemption column . 
    if credit amount is 5000/- and membership price is 10000/- then 5000/- update in revenue reports (i.e ; difference of (10000 - 5000)/-).



2) Monthly revenue recognition calculation : 

  • Monthly revenue would calculate per day revenue which depends on expiry days defined in the membership . 
  • Ex: if credit value is zero , 
    Membership price is 10000/- and membership expiration=100 days then, by default initially recognized in enabled, now you can change/edit it to MONTHLY revenue recognition 
    Now monthly revenue recognition =10000/- 
    Per day recognition = Membership monthly revenue recognition /Expiry days 
                                    = 10000/100=100/- 
    So, per day it would update 100/- in revenue reports till 100th day (as expiry days is 100)


3) If you select both Initially and Monthly recognition revenue then it works as follows : 

     Membership price=10000/- 
     Balance=0 /-
     Initially recognized=5000/- and 
     Monthly recognized=5000 /-
     Expiry days=100/-


Once invoice is closed , initial recognition - 5000/- will update in all revenue reports .
Monthly revenue would calculate : 5000/100=50/- each day , it will update in all revenue reports except in service revenue ,therapist revenue , products revenue and collection reports.

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