Revenue recognition is an accounting principle that identifies the conditions where revenue is recognised and determines how to account for it. In aXcelerate, enrolments in qualifications can span over several years and be worth thousands of dollars. Recognising revenue in aXcelerate means evenly recognising a portion of the overall tuition fees for a given period throuhout the course of the enrolment.
Tip: The report is intended to be run monthly. When a month has ended, run this report and save the recognised revenue values for any enrolment that was active in the previous month.
Note: Recognised revenue is calculated in aXcelerate on a daily accrual basis so not all months are even. The months that have 31 days will have a slightly higher value than the months that have fewer days.
Warning: For each enrolment, the recognised revenue can only be saved once in any given month. The value for each month cannot be undone, so ensure all enrolment dates and tuition fees are correct before running the report. If you over-recognise a value in a month, the following months will have a relatively smaller value to balance the enrolment. If you reverse tuition fees after recognising revenue, you will have a negative amount in the following month.
If you are intending on recognising revenue for more than 3000 enrolments, you have to use filters other than "Revenue Recognised for period".
Configure Revenue Recognition Settings
Each time the recognised revenue is run, it is calculated based on the unrecognised tuition fees for an enrolment, as a function over time. There are two configurable rules that enable you to instantly recognise a percentage of the recognition on the month of the enrolment date and/or the month of the commencement date. These are optional configuration settings and allow you to customise how the report calculates recognised revenue.
Tip: Values are a percentage expressed as a decimal between 0 and 1.
E.g. For 30%, enter the value 0.3.
Run a Revenue Recognition Report
The following permissions are needed to run this report
- Reports - Full Access
- Enrolments - View
- Finance - Finance Master
The report builder behaves as any other standard Report Builder report. There is one mandatory filter, "Revenue Recognised for period" that determines the period for the report. The key display fields in the report are:
- Remaining Balance after Revenue Recognised
- Total Remaining Days in Enrolment
- Num Days in Current Period
- Recognise Enrolment Value Now - (if Enrolment Rate > 0.0 in system settings)
- Recognise Commencement Value Now - (if Commencement Rate > 0.0 in system settings)
- Recognise Remaining Tuiton Value Now
The fields above are used to determine how much revenue should be recognised for a student for any given month.
Recognise Remaining Tuiton Value Now is calculated as:
Remaining Balance x ( Days in Current Period / Total Remaining Days ).
Recognise Enrolment Value Now and Recognise Commencement Value Now are one-time 'instant' revenue recognitions if the respective event occurred in the current period.
Tip: If you have already recognised revenue for the period, these values will be shown in any field that is labelled "... in current Period". If there is a value in this field, the related "... Value Now" fields will show $0.00 since you can only recognise revenue once in the period per enrolment.
Save Recognised Revenue
After viewing report results, if there are values > $0.00 under the columns that end in ".. Value Now", you can use the checkbox to the right, to select all of those records. Note that if the values on any row are $0.00, the checkbox will be disabled.
You can also use the checkbox under the main summary section at the top to hide records that are not selected. If any records are checked, the Recognise Revenue button will become active. Clicking this button will save the values for that period against ever enrolment that is selected.
Tip: Saving recognised revenue can take some time. You should see a progress bar appear at the top of the page when saving the values.
Revenue Recognition FAQs
Where can I see the history of revenue recognised for one enrolment?
Go to any enrolment where recognised revenue has been saved at least once. Scroll down to the finance section at the bottom of the page and look for a value in green text. Click on the currency value and a history of recognised revenue will appear in a pop-up window.