Question
How does gross revenue differ from net revenue in ROLLER?
Solution
Gross revenue and net revenue in ROLLER show how much money your business is making using the accrual accounting method. This method recognizes revenue when it's earned (ie a guest redeems tickets or tickets expire due to non-attendance), not when payment for the sale is received.
| Term | Definition | Example |
|---|---|---|
| Gross revenue | Gross revenue is the total recognized revenue, inclusive of tax. Revenue in ROLLER is recognized based on the booking date (attendance date) or ticket expiry date, rather than the date when payment was received. |
Yesterday, 100 tickets were booked at $44.00 each (including tax). Of these, 95 were redeemed at the point of sale (POS), and 5 went unused and expired. Gross revenue = $4,400.00 |
| Net revenue | Net revenue is gross revenue less tax payable*. | Gross revenue = $4,400.00 Tax payable on gross revenue = $365 Net revenue = $4,400 - $365 = $4,035 |
* Tax payable on gross revenue.
Learn more
- Cash versus accrual accounting
- Key concepts & terms in ROLLER reports
- When does a ROLLER product expire for recognizing revenue?
- ROLLER for bookkeepers