Users with admin roles can find this report in the left menu of your admin platform under accounting.
The first thing to notice is the period selector. The period selector allows you to consult the information on a monthly basis. Past periods are locked while the current period is a month-to-date report, to the millisecond.
If you support multiple currencies, you can then segment the accounting report by currency.
The balance sheet section contains all the balances required in your balance sheet. This includes summaries of your accounts receivable, customer balance, and more.
The profit and loss section contains all the balances required in your profit & loss statement. This includes recognized revenue, commissions, and more.
The columns represent the different accounts and their total is the monthly variation for that account during that month.
The Net Agency is your totals minus any agency commissions.
The rows contain the summary of the billing objects on the platform. Below is a description of each row and all the relevant information revolving around it.
The opening balance applies to the accounts receivable and deferred revenue columns. This row carries over the closing balance from the previous month for both accounts receivable and deferred revenue.
This row summarizes all invoices related to subscriptions that were either created or renewed during the selected month, including subscriptions managed by agencies.
As a new invoice is created for a new or renewed subscription, it's total (tax in) is added to the
Account Receivable cell, it's subtotal (tax out) is added to the
Deferred Revenue cell and any tax rate applied to the invoice are summed up and added to the
Let’s consider a scenario where an invoice was created for a regular subscription having a plan value of 50$, for which a 10% tax rate was applied, the entry for this specific case will result in this:
Consider our previous example, but let’s say that this subscription is managed by an agency on a plan having a 60% remit rate.
This means your share of the subscription value is 30$ (50$ * 60%), while the agency's share is 20$. The agency's share is added to
Agency commission row which will then be subtracted to out of the Total row to result in Net Agency.
Revenue can now either be recognized based on time or shipments. This can be configured while creating and configuring a plan. Subscriptions stop being recognized as soon as they are canceled immediately and the current date surpasses the ended_at field date.
When recognized revenue is time-based, it is calculated from the number of seconds elapsed since the start of a subscription’s billing cycle, in relation to its total period length. In other words, the total dollar value of the subscription is divided by the number of seconds in the subscription’s term and recognized as time passes.
To represent this, let's consider that our 50 $ subscription lasts 50,000 seconds, which means that with every second that passes, we will be recognizing 0.001 $ (50$/50,000 seconds). The
Agency recognized commission is recognizing the commission in the same way. After 1000 seconds the entry in the report would look like this:
After another 4,000 seconds, which amounts to 5000 seconds (or a tenth of the subscription) the report entry will be as followed:
When recognized revenue is based on shipments, it is calculated based on the shipments created during this month in relation to the shipments per interval configuration in the related plan. Note that a plan is set to recognize revenue based on shipments, the shipments remaining configuration will not be editable from the plan configuration in order not to impact the accounting calculation. For example, if a customer subscribes to a $120 plan with 12 shipments. If a shipment is created and fulfilled every month, $10 would be recognized every month. The shipment is recognized based on the approved_at timestamp which is the date & time the fulfillment associated with the shipment is approved.
Note: Learn more about the implication of gift subscriptions on accounting here.
As customers pay their invoices, amounts will be debited to the appropriate payment column and the amount will credit either the customer balance or the accounts receivable. This is dependent on whether the payment was applied to an invoice or if it was applied to the customer's balance. You can learn more about Customer Balance transactions here.
If a client pays with his credit card:
If a client pays an open or past due invoice by cheque:
In the event that a customer pays an amount in advance, normally through an offline payment, the value of that amount will be added to the customer’s balance. This typically occurs for customers renewing a subscription in advance.
This applies to all payments not directly applied to an invoice.
Applied balance summarizes all the customer balance transactions that were applied to an invoice. You can read more about Customer Balance Transactions here.
When a customer balance is applied to an invoice, the amount is transferred from the balance to the account receivable column as shown below.
Refunds are an independent billing object to keep track of how much is refunded back to the customer. A refund is always linked to the associated payment for reference.
When a refund is made, if the refund is made directly unto the credit card, the refund will appear as shown below:
If the refund was added to the customer balance, it will appear as shown below:
If a refund is made to the customer’s balance, it will remain in the customer’s balance to be used to pay for an invoice at a later time.
Invoices get marked as uncollectible past a certain period. This is configured from the platform settings. When an invoice gets marked as uncollectible, it will get a time stamp on when this occurred. This timestamp is used to clearly identify uncollectible invoices based on the date they occurred. Uncollectible invoices can be thought of as bad debt.
Invoices can get marked as voided. This is an action an administrator can take from the platform. Once an invoice is marked as voided, it will get a time stamp on when this occurred called voided_at.
Credit notes are a billing object used to correct invoices. You can learn more about Credit Notes here.
The total row sums up all the rows into a total for each column.
The opening balance applies to the accounts receivable and deferred revenue columns. This row adds the opening balance to the total of the month in order to arrive at the closing balance of the month.
The agency commission is a summary of the commission that an agency will receive from the invoices created in the platform.
The agency recognized commission is the portion of the agency commission that is recognized every month.
This feature is only available for enterprise clients
The details of the summaries displayed in the accounting report are also available in an export that details the breakdown of each transaction that taken into account that would sum to the total displayed in the summary.
To export the accounting reports, you can click on the download icon next to the report of your choice. Once you do that, an email will be sent to you with a download link through which you can download the report.
Updated 14 days ago