Entering charge per service revenue streams

If you want to enter the number of customers you expect to sell your service to, along with the price for each service, choose the  service sales revenue stream model, and the system will calculate the totals automatically.

Keep in mind that how you define a 'customer' depends on what you sell. If you offer consulting engagements, collecting fees, service charges, fixed-price contracts, or pallets of low-value materials. Do what makes sense for your business.

Adding a Service Charges Revenue Stream:

1

In your financial forecasting tool, navigate to the  Revenue tab and click on the Add Revenue Stream option:

2

A pop-up will appear. Enter the Revenue Stream group title, then click on Save & Next.

3

After saving the group, click on the Add Revenue Item button to begin entering individual revenue sources within that group.

4

A forecast form will open, enter the  Revenue Stream title, and continue.

5

Here you have 5 ways to forecast revenue streams. You'll choose the type of  Charge per service when you set up a revenue stream by clicking the appropriate radio option.

6

Customers: Enter the number of customers of this service you think you'll sell. This can be either a constant amount per month or year, or varying amounts.

If you choose  the constant amount, enter the number of customers you forecast for each day, month, quarter, or year:

Estimate and enter what the percentage change will be in Customers over time.

If you choose One-time or Varying amounts over time, enter the number of customers you forecast to sell your service to in any months you prefer:

7

Price: Enter the amount you will charge for each customer of this service. You can enter a constant price or varying prices over time:

Enter the sales tax rate applied. The system will calculate your taxes and add them to the forecast automatically.

8

Refund: Unexpected refund risks are involved with your service businesses if you are going to provide a refund to your customers. Let's enter how much refund rate you estimate over the revenue generated by Revenue Stream:

8

Start and End period:  Indicate when the revenue for this service charge sales stream will start and finish. Click on Save.

Editing or Deleting a Revenue Stream:

To Edit an Existing Revenue Stream:

1

Within a Revenue group, near the finance item, click on the pencil icon to edit:

2

In the overlay that will appear, to start editing the revenue stream, click on edit:

3

In the form that will appear, you can click on any input fields that you wish to edit:

4

Make your desired changes, and then click on Save to apply changes.

To Delete a Revenue Stream:

1

Locate the revenue stream group you want to remove.

Click on the three-dot next to it and select Delete Group from the dropdown.

2

A confirmation pop-up will appear. Click Ok, Remove to permanently delete the revenue group.

3

To delete an individual revenue item within a group, go to the respective revenue group, click the three-dot menu next to the item, and choose Delete Item.

4

A confirmation pop-up will appear. Click Yes, Delete to remove the revenue item.

Where does this entry appear in the financial statements?

Your revenue streams will be used to calculate the highlighted lines in the Profit & Loss and Balance Sheets report shown below:

By following these steps, you can enter your charge per service revenue, and now your finances are better organized. Keep this updated to always know where your business stands.