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Premium Report - Unrecognized Revenue

Unrecognized Revenue

Revenue Recognition reports are used for financial reports in accrual based accounting.

In this article, we're now going to look at the other half of the coin - Unrecognized Revenue. Revenue is considered unrecognized when:

  1. It's the sale of a line item AND the item is unfulfilled at the end of the report range = Yes
  2. It's shipping AND the order is unfulfilled at the end of the report range = Yes
  3. If the order has been cancelled, or none of the above apply = No

These reports cover all revenue that has yet to be recognized, and just like the Revenue Recognition reports, they can be viewed at either summary or detail levels.

Lets start with the details first:

There are a few main terms to understand for Unrecognized Revenue reports.

1.) Is Revenue Unrecognized (FILTER): This Filter setting looks only at Revenue that has been unrecognized

(e.g. any sales of line items that are unfulfilled or shipping when the order is unfulfilled at the end of the report range).

**2.) Created at:**When each order line was created. Because Unrecognized Revenue is only focused on item sales and shipping, then this will usually be the date + time of the order.

**3.) Type:**The type for each line on the order. Only Sale and Shipping lines will count as Unrecognized Revenue on this report.

**4.) Order fulfilled at:**When the whole order is fulfilled. This is left blank for orders that aren't Fulfilled.

**5.) Fulfilled at:**When the individual Sale line item is fulfilled.

6.) Quantity: How many of a given line item were part of that order.

**7.) Fulfillable Quantity:**How many of a given line item have yet to be fulfilled.

If you're looking for more of an overall summary, grouping all of your unrecognized revenue across multiple orders according to the rules (above) then check out our Unrecognized Revenue summary report:

Like all Report Toaster reports, these reports are fully customizable - so you can adjust the date range, add/remove columns, introduce a filter or change the sort to suit your individual needs. See our basic guides here for more info.