Understanding of Sales, Collection, and Revenue in Zenoti

Zenoti has an exhaustive number of reports that help you gain an insight over every aspect of your business and help you take informed business decisions.

Understanding what constitutes a Sale, Collection, or Revenue in Zenoti helps you interpret financial reports accurately.

In this article, you will learn the meaning of Sale, Collection, and Revenue in Zenoti and also the factors that determine their value in Zenoti Reports.

 

Table of Contents

 

Sale

A sale of any item in Zenoti (services, classes, products, memberships, packages, gift cards, and pre-paid cards) is the final price of the item after factoring in all the discounts and does not include tax. 

For example, consider the following:

Item Price
Massage $100
Discount $10
Tax $5
Amount Collected by Center $95
Sale reported by Zenoti $90

 

In the above example, the amount collected by the center is $95 (Massage Price - Discount + Tax).

Whereas, the sale reported by Zenoti is $90 (Massage Price - Discount - Tax).

 

Sales representation in Zenoti Reports

All the items sold by a center or organization is reported as the sales of the center or organization.

In Zenoti Reports, the values that appear in Sales column or field is determined by the following:

  • Invoices: Only Closed invoices are considered.
  • Payment Types: Only Cash, Card, Check, and Custom Payments are considered.
  • Day: The day on which the sale is reported varies as follows:
    • Services and Classes: The day on which the actual service or class took place and not the date on which the service was booked or the invoice was closed. 
      Example: If a guest books an appointment on 10th, avails a service on 11th, but makes the payment on 12th and the front office closes the invoice (on 12th), the sale of the item (in this case, service) is reflected on 11th in Zenoti reports.
    • All other items: The sale of all other items (products, memberships, packages, gift cards, and pre-paid card) is reflected on the day the item was sold.
      Example: If a guest purchases a membership on 11th, but makes the payment on 12th, the sale of the item (in this case, membership) is reflected on 11th in Zenoti reports.
  • Discounts: Includes discounts
  • Tax: Excludes taxes

 

Collection

Collections in Zenoti is the total amount collected from guests in the form of Cash, Card, Check, and Custom Payments for the invoices raised by the centers. Collections amount include the amount collected for tax.

For example, consider the following:

Item Price
Massage $100
Discount $10
Tax $5
Amount Collected by Center $95
Collection reported by Zenoti $95

 

In the above example, the amount collected by the center is $95 (Massage Price - Discount + Tax).

Collection reported by Zenoti is also $95 (amount collected by the center).

Note: If no tax is applicable and the invoice is paid, then Sales and Collections values will be the same.

 

Collections representation in Zenoti Reports

In Zenoti Reports, the values that appear in Collections column or field is determined by the following:

  • Invoices: Both Open and Closed invoices are considered.
  • Payment Types: Only Cash, Card, Check, and Custom Payments are considered.
  • Day: The day on which payment is made for the invoice.
    Example: If a guest books an appointment and avails a service on 11th, but makes the payment on 12th, the collection of the item (in this case, service) is reflected on 12th in Zenoti reports.
  • Discounts: Includes discounts
  • Tax: Includes taxes

 

Revenue

In Zenoti, there are two types of revenue:

Service Revenue: The total amount realized by the sale of services or classes (excluding tax)

Product Revenue: The total amount realized by the sale of products (excluding tax)

 

There are two scenarios when revenue is realized:

Payments: Revenue is realized when the amount for the service, class, or product is collected in the form of Cash, Card, Check, or Custom Payments.

Redemptions: Revenue is realized when guests redeem memberships, packages, gift cards, or pre-paid cards to purchase services, classes, or products.

Important: Revenue is not realized immediately after guests purchase memberships, packages, gift cards, or prepaid cards. Instead, revenue is realized only when they are used to pay for services or products. 

 

Examples:

Payments

  • Service Revenue: If a guest purchases a service worth $300 and makes a payment using Cash, Card, Check, or Custom Payments, and the invoice is closed, then the Service revenue is recognized as $300 (paid for the service).
  • Product Revenue: If a guest purchases a product worth $300 and makes a payment using Cash, Card, Check, or Custom Payments, and the invoice is closed, then the Product revenue is recognized as $300 (paid for the product).

Redemptions

  • Service Revenue: If a guest has a gift-paid card worth $500, and redeems $300 from the gift card to pay for a service, then the service revenue recognized is $300. 
  • Product Revenue: If a guest has a package worth $500 with 5 products, and redeems 1 product from the package, then the product revenue recognized is $100. 

 

Revenue representation in Zenoti Reports

In Zenoti Reports, the value appearing in Revenue column or field is determined by the following:

  • Invoices: Only Closed invoices are considered.
  • Payment Types: Redemptions (memberships, packages, gift cards, or pre-paid cards), Cash, Card, Check, and Custom Payments.
  • Day: The day on which the invoice is closed.
  • Discounts: Includes discounts
  • Tax: Excludes taxes

 

Examples of Sales, Collections, and Revenue realization in Zenoti Reports

The realization of Sales, Collections, and Revenue in Zenoti Reports are dependent on various factors, for example, state of the invoice (open or closed), date of the service, etc.

The following examples show various scenarios of guests purchasing items (services, products, etc.,), closing of invoice on various dates, and how the Sales, Revenue, and Collections are reported in Zenoti reports.

 

Scenario 1

Product Purchase Date: 10th

Invoice Close Date: 10th

In this case, the Sales, Collections, and Revenue is reported in Zenoti Reports as follows:

Date Sales Reported Collections Reported Revenue Reported
10 Yes Yes Yes

 

Scenario 2

Service Booking Date: 10th

​Service Availed Date: 11th

Payment and Invoice Close Date: 12th

In this case, the Sales, Collections, and Revenue is reported in Zenoti Reports as follows:

Date Sales Reported Collections Reported Revenue Reported
10 No No No
11 Yes No No
12 No Yes  Yes

Notice that the Sale is reported on 11th though the booking was made on 10th. This is because the Sale in Zenoti Reports is reported on the day on which the actual service took place (in this case 11th) and not the date on which the invoice is closed. 

 

Scenario 3

Product Purchase Date: 10th

Payment and Invoice Close Date: 11th

In this case, the Sales, Collections, and Revenue is reported in Zenoti Reports as follows:

Date Sales Reported Collections Reported Revenue Reported
10 Yes No No
11 No Yes Yes
 

Notice that the Sale is reported in Zenoti Reports on 10th (the day the product was sold) and the collections and revenue is reflected on 11th.

 

Scenario 4

Membership Purchase Date: 10th

​Payment and Invoice Close Date: 10th

Service Redeemed from Membership Date: 11th 

In this case, the Sales, Collections, and Revenue is reported in Zenoti Reports as follows:

Date Sales Reported Collections Reported Revenue Reported
10 Yes Yes No
11 No No Yes
 

Notice that on 10th, Sales and Collections is reported for purchase of the membership but Revenue is not. Revenue is reported on 11th (the day the service is redeemed).

 

Scenario 5

Gift Card Purchase Date: 10th

​Invoice Close Date for Gift Card Purchase: 10th

Service Purchased using Gift Card Date: 11th

Invoice Close Date for Service Redeemed using Gift Card: 11th

​In this case, the Sales, Collections, and Revenue is reported in Zenoti Reports as follows:

Date Item Sales Reported Collections Reported Revenue Reported
10 Gift Card Yes Yes No
11 Service No No Yes
 

Notice that on 10th, Sales and Collections is reported for purchase of the Gift Card but Revenue is not.
On the 11th, when a service is redeemed using the Gift Card, Sales and Collections are not reported, but Revenue is reported.

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