Revenue Reporting using Sales Report Categories

Sales Report Categories (SRCs) are the basis of revenue reporting in Inomial Billing.  It is therefore quite important to plan the establishment and maintenance of SRC configuration in order to report revenue in a way that is most meaningful to your business.

SRCs are used to:

  1. Categorise revenue, i.e. every charge and payment that Inomial Billing can raise / receive.
  2. Optionally associate those categories with a General Ledger code that the GL of an accounting software package would use so that you can load it with revenue figures, typically at the end of each month, when you “close the books”.

Inomial Billing is a full Accounts Receivable system.  This means that amongst other things it provides great capability and control over the various charges / payments you raise against your customers and against yourself.  Refer the following Sales Report Category Assignment section to appreciate the diversity of transactions and items supported by Inomial Billing.  The SRCs configured there are the basis of much of the system’s Financial reporting.

Sales Report Category Assignment

Each transaction has an associated SRC.  As a result, the value of transactions can be reported by SRC.  Additionally, each item on an Invoice or Itemized Credit is also associated with an SRC, so financial reporting at the item level is supported too.  Here’s a list of transaction types and items that can be classified with an SRC:

  • Transactions (Debtor items). Note it’s generally sufficient to leave most of these as originally defined
    • Adjustment types
    • Bond releases / Bond release reversals
    • Bonds / Bond reversals
    • Commission / Commission reversals
    • Credit / Debit allocations (for allocations across accounts)
    • Credit / Debit Notes – refer Adjustments
    • Credit Transfers / Debit Transfers
    • Invoices and Invoice reversals (these are not used for reporting purposes as invoice item SRCs are used for reporting purposes instead)
    • Itemised Credits / Itemized Credit reversals (these are not used for reporting purposes as invoice item SRCs are used for reporting purposes instead)
    • Receipts and Receipt reversals – these are initially set according to the configuration of the originating Payment Method
    • Reimbursements / Reimbursement reversals
    • Surcharges / Surcharge reversals
  • Invoice / Itemized Credit Items (referred to generically as “Invoice Items”)
    • Contract early termination fees
    • Discounts
    • Feature charges
    • Invoice Items (one-off charges defined under Configuration > Invoice Items)
    • Plan option
      • Set up fees
      • Recurring charges
    • Plan recurring charges
    • Plan rules
    • Plan set up fees
    • Pre-paid usage
    • Service recurring charges
    • Tariff types (flagfall, timed, bytes in, bytes out, pages, rate, bytes sent rate, bytes received rate)

Planning Item Categorisation

As mentioned earlier the supplied SRC config at the transaction level is usually sufficient for most organisations.  Categorisation of items (Invoice or Itemized Credit), however, is much more organisation dependent.  This section deals with Item categorisation.

SRCs should be defined first and then assigned to Items as they are created.  It’s easier to take this approach than to define Items with a default SRC such as “uncategorised charge” or an incorrect one and then come back to each individual item and update their SRC.

Note: Every item defined must be assigned an associated SRC.

Categorisation should be done with consideration of how revenue/non-revenue would be best reported for your business.

Inomial Billing is pre-populated with a starter set of SRCs some of which are assigned to the items defined in sample invoice items and services, discounts, adjustments, etc. supplied as examples in the system.  These should be revised.  The supplied SRCs for the Transactions (Debtor Items), however, are usually sufficient for most organisations.

A simple approach to setting up SRCs is to have one SRC for a “product” where a product might be all charges associated with a given service.  For example, if you have a VoIP service for which you want to report the total revenue, regardless of how raised, you could create a single SRC and assign it to all charges configured against the service, typically every associated:

  • Contract early termination fee
  • Feature charge
  • Plan option
    • Set-up fee
    • Recurring charge
  • Plan recurring charge
  • Plan rule
  • Plan set up fee
  • Pre-paid usage
  • Service recurring charge
  • Tariff type

Inomial Billing would then be able to report all revenue for the VoIP product in one single aggregate number (per month, account type, etc. according to how a given report might be filtered).

The “Sales Reporting Categories” report is an easy way to see a list of SRC names, their associated GL code and the number of items where it is has been used.  To see where a Sales Reporting Category is used, refer to the section Assign Invoice Items

Defining an SRC

To define an SRC:

  • Set an alphanumeric Code (effectively a key). Don’t base any significance on this as once set it cannot be changed.
  • Optionally assign a GL code
  • The Valid from / to fields can be used to restrict the SRC’s availability for assignment to charges. For example, you may wish to define an SRC for use against charges related to a campaign for items only to be sold in a certain month.  Setting the Valid from/to dates means that the SRC will not present in the drop-down lists when assigning / reassigning an SRC to a new / existing charge outside of that valid period.
  • Give it a meaningful Name.
  • Optionally set the GL code. Some Inomial Billing reports identify revenue aggregated by GL code.  The “General Ledger (GL) Summary” is the report typically used at end of month when the “Close Accounting Period” is set (Configuration > Close Reporting Period) to provide revenue figures by GL code.  These would then be loaded into a General Ledger system should you have one.
  • Check each transaction category against which the SRC is allowed to be assigned.

Assign Invoice Items

Clicking on the “Assign Invoice Items” button will show you a list of items that use the given SRC and how many times it’s been used, e.g. for item descriptions, the number of invoice items created with that SRC.  From there you can View the configuration of the actual item and if necessary change it.

  • “Show Un-used Item Descriptions” will show configured items that have not been used (count = 0), e.g. invoice item never raised.
  • Clicking View will take you to the where the item is configured, so you could use this to guide you to the place where an SRC needs to be changed.

Often when new charges are being defined “Uncategorised Category” is the default SRC assigned.  Best practice is to check that “Uncategorised Category” is not assigned to any items.

Back at Configuration > Sales Report Categories you can click “Assign Invoice Items” at the bottom of the list to see a full list of items (Show All).  Depending on the size of your system this may take a while to run.

NOTE: Changing an SRC will affect the reporting for past periods, even those prior to the Close Accounting Period, i.e. correcting an SRC will mean that values reported in a previously configured category will appear in the corrected category when the report is rerun.

Related Reports

There are many reports (Analytics) that show revenue by SRC.  Significant ones are:

  • Sales Report Category (as mentioned above)
  • All Sales, by Month (and its associated drill down reports)
  • All Sales Unapproved