Configure membership revenue rules
Use this article to configure membership revenue rules related to including expired memberships in revenue, considering discounts for computing service credit revenue, and enabling discounts on membership payments.
Allow considering expired memberships for revenue recognition
Revenue recognition in accounting is the process of determining when and how to record revenue on the income statement. The core idea of revenue recognition is that revenue should be recognized when the earnings process is complete and the rights to benefits from the sale are transferred to the buyer. This means that revenue should not be recognized simply because a customer has placed an order or made a deposit. The specific revenue recognition method that is used will vary depending on the nature of the business and the type of goods or services that are being sold. For service businesses like salons or spas, revenue recognition is typically tied to when the service is rendered. However, when memberships that have balances expire, businesses can choose to consider these unutilized balances for revenue recognition. To include balances from expired memberships for revenue recognition, do the following:
Required roles: Any role with access to the Administrator mode
Required permissions: None
At the organization level, click the Configurations icon.
Search for and select the Allow balances from expired memberships to recognize as revenue setting in the Memberships section.
Enable this setting.
Click Save.
Allow considering discounts when computing service credit revenue
Zenoti does not consider the membership discounts given on services while computing the revenue arising from the redemption of service credits. However, if your business needs to include these discounts for computing the service revenue, do the following:
Required roles: Any role with access to the Administrator mode
Required permissions: None
At the organization level, click the Configurations icon.
Search for and select the Consider discount when computing service credit revenue setting in the Memberships section.
Enable this setting.
Click Save.