Why expected revenue is less than received?

Modified on: Mon, 11 Jul, 2022 at 2:30 PM

Scope

why expected revenue is less than received?


Summary

Expected Revenue is 

Received revenue (default) + Upcoming renewals (default) + Trial and Future subscriptions with cards (optional) + Monthly revenue calculations (optional)


whereas Received Revenue is 

[(Total value of successful Payments) - (Total value of successful Refunds)]


Solution


Expected Revenue

It includes Received and Expected Revenue from upcoming renewals (tax included) as of date. Trial conversions and future activations with card and payment due invoices are optional. Expected Revenue delivers a reliable forecast of future sales for many companies. It is the Revenue expected from trial and future subscriptions. The term "expected revenue" refers to the forecast amount of money the company will earn from sales, services, and additional income streams. "Revenue" includes all money earned before it is divided into salaries, marketing payments, expenses, and so forth. Setting an expected revenue figure helps sales and increases the overall Revenue.


Received Revenue

Received revenue is the income received from sales of goods or the provision of services. In accounting, the terms "sales" and "revenue" are used interchangeably to mean the same thing.


Note: Your received revenue metric now refers to the net cash flow received for your business and excludes the refunds (if any) processed for your site. As a result, you may see a drop in your received revenue metric going forward.


The Expected Revenue figures displayed on the Dashboard (for live sites only) can be calculated using the following formula:


(Payments of this month* - refunds of this month**) + ***subscription's next_billing_amount



Expected Revenue can also include:


Received revenue (default) + Upcoming renewals (default) + Trial and Future subscriptions with cards (optional) + Monthly revenue calculations (optional)


The Received Revenue figures displayed can be calculated using the following formula:


[(Total value of successful Payments) - (Total value of successful Refunds)]




Related Articles:

Calculation logic for expected revenue figure on the dashboard

Pricing - how is my monthly revenue calculated by Chargebee?

What is the difference between CMRR and Expected Revenue?

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