Problem
You may notice the Taxable sales value in the Sales Tax report (accrual) doesn’t match the Funds received value in the Daily Summary report.
Solution
Taxable sales is the total value of recognized revenue on the filtered date where tax has been applied. ROLLER only recognizes revenue when the service is delivered, not when the payment is collected.
Funds received are the funds paid on the filtered date, but it can be for future bookings that will become recognized revenue once they expire or are redeemed.
This means taxable sales in the Sales Tax report for accrual accounting can be higher than the funds received because ROLLER recognizes revenue when bookings are redeemed or expired. The difference between these two values is known as Deferred Revenue.
The Revenue Recognition report is a good resource to understand the breakdown of these different values. Follow the steps below to compare the differences in Taxable sales to Funds received.
Understanding deferred revenue
From Venue Manager, go to Reports > All reports.
Search for and select the Revenue Recognition report.
Add the Net Revenue & Tax Payable values together. This will equal the Taxable Sales value.
Subtract the Funds received value from that sum. This will equal the Deferred revenue value.
If you are using Fees, you will need to subtract any fees associated with the booking from Funds received to find Deferred revenue.