- Information below is about revenue without the Revenue recognition add-on. Please see the Revenue recognition article for more information about the add-on.
- Users are able to view and edit revenue based on Access rights.
Generally speaking, revenue is the income a company generates prior to the deduction of expenses. Hence, revenue is often the same as billing because both figures are a direct result of sales. Revenue can diverge from billing when payment is accrued or deferred. And, in some businesses billing is a subset of revenue because income is generated not only from sales but also from investments, licenses and interest.
Visma Severa accommodates the calculation of revenue in various situations. By default, revenue is calculated automatically for every case based on invoicing. Revenue is recognized according to the Date of entry (specified on the invoice Config tab) when an invoice status is marked Sent . If desired, revenue can be adjusted manually to distribute income over time or recognize income from sources other than sales.
Revenue is displayed in the Overview section of a case, and can be adjusted through the Billing & Revenue section.
Automatic calculation of revenue
When revenue comes strictly from sales, it should be calculated automatically without manual adjustment. Revenue and billing increase with every invoice, but the two figures aren't always the same since the increase in revenue is staggered. Billing increases when an invoice is created while revenue increases when the invoice status is marked Sent.
Billing is also displayed in the Overview section, however it can be forecasted through the Billing & Revenue section without affecting the automatic calculation based on invoicing. Upon creation of an invoice, a new column called Actual billing is added to the Billing & Revenue section for comparison with the billing forecast.
Manual adjustment of revenue
As mentioned previously, revenue that is accrued or deferred can be adjusted manually in the case to distribute it over the course of the project. When revenue has been manually adjusted it is recommended to review revenue with every invoicing to ensure that income is recognized or manually adjusted to reflect actual income.
Deleting and reimbursing invoices
Regardless of whether revenue is automatically calculated or manually adjusted, deleting an invoice with Draft status will only reduce billing, but deleting an invoice with Sent status will reduce both billing and revenue. Similarly, reimbursing an invoice will reduce the revenue unless a new invoice is created and marked Sent.
Revenue in reporting
Through reporting, revenue can be analyzed in relation to multiple cases, accounts and business units. Revenue data is taken directly from the related cases, and there isn't any differentiation or identification of which revenue was automatically calculated or manually adjusted.