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. | 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. |
Net revenue | Net revenue is gross revenue less tax payable*. | Gross revenue = $4,400.00 |
* Tax payable on gross revenue.