Jackrabbit's Revenue Reconciliation reports are an indispensable tool when you have multiple Business Locations in your database!
You can find these reports under the Transactions menu. Go to Transactions (menu) > Transaction Reports > Revenue Reconciliation Reports.
- Reconcile revenue between where payments were received and where revenue was earned.
- Analyze revenue by Family or by Business Location using four report options: Reconciliation Summary, Location Summary, Revenue by Location, and Revenue by Family.
When you have a single Business Location in your database, the only report option available is the Revenue by Family; the other three options relate to multiple Location revenue reconciliations.
Using the following example, we'll step through each of the four report options:
- An organization has two Locations, Location 1 and Location 2. The physical locations are very close to each other, and many families have students taking classes at both.
- Each Location is managed by a different business partner, and revenue is routed to separate bank accounts based on the Location of the family making the payment.
- The Family Location for the Hallman Family and the Snyder Family is Location 1.
- The Snyder Family has a student taking one class at Location 1 ($120); they made a payment of $120 for the February tuition, and it was deposited into the Location 1 bank account.
- The Hallman Family has a student taking one class at Location 2 ($60); they made a payment of $60 for the February tuition, and it was deposited into the Location 1 bank account.
- The Paid Fees Detail report for all Locations reflects both payments and total revenue of $180.
The Reconciliation Summary report does the math to suggest the amounts that need to be transferred between the two bank accounts so that each partner receives the amount of revenue that was earned at their Location.
The Snyder Family made a payment of $120, and it was deposited into the bank account for Location 1. This payment was for fees for the class taken at Location 1 (their Family Location). Therefore, no money needs to be transferred.
The Hallman Family made a payment of $60, and it was deposited into the bank account for Location 1 (their Family Location), but their payment was actually for fees for the class taken at Location 2. Therefore, Location 1 owes Location 2 $60.
To drill down into the details further, the Location Summary report is used.
The Location Summary report lists, by Location, the total payments received from families at the Location (Realized Income) and the total fees earned at the Location that had payments applied to them (Recognized Income).
When a Location has collected less money than they have earned, the Difference will be negative (indicating they are owed money). When a Location has collected more money than they have earned, the Difference will be positive (indicating they owe money). The differences will net to zero.
Revenue by Location
The Revenue by Location report lists every payment received, and every fee that had a payment applied to it, for each Business Location. This report can be used to confirm the results of the Location Summary and the Reconciliation Summary.
Revenue by Family
The Revenue by Family report lists every payment made and the fees the payment is linked to, for each family.