Monthly summary

The monthly summary provides a detailed breakdown of activity for the previous month. You can use this information to understand how your billing activity affected your revenue and to book journal entries.

You can see that the net recognized revenue is 171,601 USD and the ending balance of deferred revenue at the end of July is 310,000 USD.

Recognized revenue

Items can be broken down into two categories: revenue and contra revenue. The following table explains each item under recognized revenue:

Deferred revenue

The deferred revenue section gives the breakdown of what changed in the deferred revenue balance. The following table lists the items under this section:

Finalized invoice example

This example includes only one invoice with the following assumptions:

• The invoice finalizes on July 10, 2020.
• The invoice has only one line item whose service period is from July 20, 2020 to September 17, 2020.
• The amount for the invoice line item is 60 USD, out of which 12 USD is recognized in July and 48 USD is deferred.

The monthly summary for July 2020 would look like this:

Continuing on this example, if the invoice is refunded on August 15, 2020, the monthly summary for August 2020 would look like this:

Standalone payment example

The revenue of a standalone payment is recognized when the payment occurs. This example has only one charge with the following assumptions:

• The charge occurs on July 15, 2020.
• The charge’s amount is 17 USD.

The monthly summary for July 2020 would look like this: