Where to see revenue recognition, MRR and ARR
Customers (top navigation bar) provides a summary of revenue recognition as well as information about customer numbers and revenue, including deferred revenue, MRR, ARR, IFRS/GAAP accounting view and detailed information on customers lost, customers gained, upsells, and downgrades.
Several reports are provided by default, but you will need to configure these reports to ensure the information is meaningful.
You can also create as many additional views as you would like.
This article explains the four types of revenue recognition view available and how to configure them.
See Configuring your revenue data upon initial setup for a full list of steps to follow to configure your revenue recognition on initial setup.
For more information on the tables at the top of these reports, see Customer page summary reports and how they are calculated: how to analyse new, lost, upsold, downgraded, active customers and revenue changes
Revenue Recognition report options: four available View types
Revenue Recognition View
Revenue Recognition: shows revenue allocated to the period in which service is provided, taking into account partial months but ignoring invoice date. This is one of the two views which can be used for month end journals. How does ScaleXP allocate the spread of revenue?
Monthly Recurring Revenue (MRR) View:
Monthly Recurring Revenue: shows revenue allocated to service date, as Revenue Recognition, but shows a full month of revenue in the start month and no revenue in the end month - that is, a full month view reflecting the amount of recurring revenue per month. This view is generally used for analytic purposes and for metrics and KPIs. It is initially set to be the global source for MRR metrics. See more in How to show a full month view of revenue (as used for MRR).
Annual Recurring Revenue (ARR) View:
Annual Recurring Revenue: shows an annualised version of MRR, reflecting a full year of revenue based on revenue in the selected month. ARR in this report is defined as MRR x12. How to report on Annual Recurring Revenue (ARR) by customer.
IFRS / US GAAP View
IFRS/ US GAAP: as above, shows revenue allocated to the period in which the service is provided, taking into account partial months. However, any revenue earned prior to the invoice issue month is allocated to the month the invoice is issued. This view can also be used for month end journals. How to set journals to IFRS or GAAP revenue recognition rules so that backdated revenue is recognised at time of invoice.
Choosing a report for revenue recognition journals
For purposes of deferred revenue journals, ScaleXP provides the option to choose between the IFRS/GAAP and Revenue recognition views.
Here is a quick comparison of the pros and cons of each option:
IFRS/GAAP view - If you are not restating prior months to account for back-dated invoices, this view makes it easy to align ScaleXP reporting with your accounting system and thus to validate and document your accounting revenue. However, it means that your accounting view will not exactly match the Revenue Recognition, MRR, and ARR views, all of which will continue to recognise revenue in the month of service, irrespective of invoice date.
Revenue Recognition view - If you wish to perfectly align your accounting revenue with the timing of services and are happy to create journals in prior months for back-dated revenue, then this view is for you. Best practice is to create accrued revenue in the months prior to the invoice being issued. Should you not accrue revenue, the system will effectively generate negative deferred revenue in prior months instead. This is because, if the system does not see the revenue as accrued, it will defer revenue that has not yet been invoiced.
Customer information in these reports
The tables at the top of the Customer page summarise information about revenue by customer. See Customer page summary reports and how they are calculated: how to analyse new, lost, upsold, downgraded, active customers and revenue changes
Configuring report options
Report Name: You can rename your report here.
View: This switches between four views: Review Recognition, MRR, IFRS / GAAP and ARR. See descriptions of each in “Revenue Recognition Report Options” above.
Date Range: The start date controls the first visible month in the table for which revenue exists. The end date controls the final visible month in the table for which revenue exists.
Invoice Source: You can choose all or select only those added directly into ScaleXP, those added from Stripe, or those added from your accounting system.
Included Data: If you're on the Automations + CRM/Forecasting subscription tier, when you've connected your CRM to ScaleXP, you will have access to the Contracts functionality. This enables you to create contracts which include Pending Invoices (Future Invoices yet to be issued Ex. Year 2 and 3 invoices on a 3 year deal), Renewals (ScaleXP creates a renewals schedule from the contracts), and Booked MRR (If you count customers on a contract towards your MRR even if their contract terms have yet to take effect). It is recommended to "Save as New" when using these revenue types to have a separate view of future revenue compared to issued invoices.
Organisation: If you have a consolidated company, you can filter by subsidiary at the parent level.
Accounts: Use this to filter out any nominal accounts for the given report. This is more common for MRR as only recurring revenue accounts should be included.
Tracking Codes or Classes: Here you can filter for tracking codes or classes such as department, product, etc.
NOTE: We highly recommend configuring the global MRR report to only include recurring revenues. Reports, Dashboards and Graphs using MRR for calculations refer to this filter.
Lost After: This defines the "grace" period for number of months without from a customer before you treat them as lost. This is reflected in the Revenue and Customer Numbers tables controlled by the Data to be Displayed filter.
Data to be Displayed: Reports in the Customers tab can include summation rows for Total Revenue, New Revenue, Lost Revenue, Upsell Revenue and Downgraded Revenue. Most of our customers hide the latter 4 from the Revenue Recognition reports and only display them on MRR as they're typically used for business analysis and not accounting/audit purposes.
Save Report: Saves the changes to the existing report. This will over-write your previous saved settings. To save a new report and keep the old one, use the "New Report" button at the top left of the page.
Creating additional reports on the Customer tab
To create a new report on the Customer tab, select New Report at the top left, then select the desired View.
To change the view of an existing report, select the report in the sidebar at the left, then Configure Report and select desired View.
Read more on related topics in these articles:
How to create a new report on the Customers page; How to use Customer page reports throughout the system
How to view MRR and/or deferred revenue by income type; how to filter accounts on the Customer page
How to create a metric, report, or chart using Customer page reports