Configure package revenue rules
You can recognize revenue at the service level and include revenue from expired packages.
Allow revenue recognition at the service level
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. For a package, to enable revenue recognition at the service level, 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 Define revenue recognition at service level setting in the Packages section.
Enable this setting.
Click Save.
Impacts and considerations
This setting allows revenue recognition for paid services in packages with both paid and free services.
Consider expired packages 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 packages that have balances expire, businesses can choose to consider these unutilized balances for revenue recognition. To include balances from expired packages 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 packages to recognize as revenue setting in the Packages section.
Enable this setting.
Click Save.
Impacts and considerations
Enable this setting to ensure accurate revenue recognition when you allow guests to use services after their package expires within a grace period. For example, a series package containing 3 haircuts had a validity of 3 months and a grace period of 1 month. A guest who bought this package took 2 haircuts before the package expired and took the third one during the grace period. In this case, revenue will be recognized for the third haircut only if this setting is enabled.