Entering charge per service revenue streams

If your business charges a set amount each time you provide a service, you can use the Charge Per Service revenue stream model in your forecast.

This revenue type lets you forecast revenue based on the number of customers you expect to serve and the amount you charge each customer. It can work well for consulting engagements, service fees, fixed-price services, and other customer-based services.

Upmetrics gives you two ways to set up a charge per service revenue stream. You can describe your service and let Finance AI draft the revenue groups and streams for you, or you can create them manually.

Adding a Charge Per Service Revenue Stream

Creating Charge Per Service Revenue with AI

1

Go to the Finance Forecasting module, select the Forecast tab, and open the Revenue section.

You will see a guided revenue setup asking What does your business sell?

2

Describe your service in plain text. Include details such as the service you provide, the number of customers you expect to serve, the amount you charge per service, and whether the customer volume or price is expected to change over time.

Once you have entered the details, click Draft my revenue.

TIP: Include your expected customer volume, price per service, and any expected changes in demand or pricing. This helps Finance AI create a more relevant starting point.

3

Finance AI will create a suggested starting point for your revenue forecast.

Review the proposed revenue group, stream name, customer assumptions, pricing, and other details. You can click the Edit icon next to a stream to make changes before adding it.

If the suggestions look correct, keep the required streams selected and click Add these streams.

NOTE: The suggested figures are only a starting point. Review the assumptions and update them to match your actual expected customer volume, pricing, and business conditions.

4

The selected revenue groups and streams will be added to your forecast.

From the Revenue section, you can review each stream and update its assumptions whenever required.

Creating Charge Per Service Revenue Manually

1

If you do not want Finance AI to draft your revenue streams, click I'd rather set it up myself from the revenue setup screen.

2

Enter the name of your Revenue Group, then enter at least one revenue stream inside that group.

You can click Add another stream to add more streams to the same group or Add a group to create another revenue group.

When you are ready, click Create these.

3

Upmetrics will create the revenue stream and open its Assumption window.

Under Basic Info, review the revenue stream name and select Charge Per Service as the Revenue Stream Type.

4

Customers: Enter the number of customers you expect to serve during each forecast period.

If you expect the same number of customers each period, select Constant Amount and enter the applicable number of customers.

You can also enter the expected percentage change in customers over time.

If you expect customer volume to change over time or only occur in specific periods, select One-time or Varying Amounts Over Time and enter the expected number of customers in the applicable periods.

5

Price: Enter the amount you charge each customer for the service.

You can use a constant price or enter varying prices if the amount you charge is expected to change over time.

If applicable, enter the sales tax rate for the revenue stream. Upmetrics will use this information when calculating your forecast.

6

Refund: Enter the refund rate you expect for this revenue stream, if applicable. This allows your forecast to account for estimated refunds issued to customers.

7

Start and End Period: Select when the charge per service revenue stream should begin and, if applicable, when it should end.

Review your assumptions and click Save.

8

After saving, the forecast sheet will open. Review the calculated revenue values and make any necessary adjustments to your forecast.

Once saved, the charge per service revenue stream will appear under its revenue group in your forecast. You can open the stream again whenever you need to review or update customer volume, pricing, tax, refund, or timing assumptions.

Where does this entry appear in the financial statements?

Your charge per service revenue streams will be used to calculate the applicable figures in the Profit & Loss and Balance Sheet reports.

Once your charge per service revenue stream is set up, Upmetrics will use the customer and pricing assumptions you entered to calculate the forecasted revenue automatically. Keep these assumptions updated as your business expectations change.