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What is deferred revenue?

Sales Reporting

Leah Cullins avatar
Written by Leah Cullins
Updated over 7 months ago

Deferred revenue is payment or payments received in advance for a service that has not yet been realized. This includes Credit Packages, Gift Cards, and Account Balances For example, a 20-credit package is purchased out front yet the classes are realized over a period of time. 

Credits:

  • When a credit is purchased, its value is assigned to the studio it was purchased from.  All purchases originate on a location basis.  

  • If a credit package is used at a different location, that credit’s value is realized at the usage location.  

  • If a credit expires, that expired credit’s value is realized at the location it was purchased from.

Reports:

  • Finance > Credit Deferred Revenue shows all used credits/packages with associated deferred revenue value.

  • Finance > Credit Expiration Details shows all credits that have expired with associated realized revenue value.

  • Finance > Credit Usage Details shows where all credits were used with associated realized revenue value.

  • Finance > Gift Cards and Account Balances shows all values of gift cards, account balances along with deferred revenue, and “comp” balance values.

  • Finance > Realized Revenue shows all non-credit purchase values along with associated revenue.

Memberships:

  • When a membership is purchased, its value is recognized immediately at the location it was purchased from.

  • Using the Sales > Order Detail report, you can get customer-level information on membership purchases.

  • With the Customer ID, you can then use the Utilization > Customer Reservation Detail report to gather which studios were frequented by those particular customers using that membership.

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