Revenue recognition is another type of report, that can show you the summarized revenues of your business and how it divides into totals of everything invoiced in the month (billings), totals of all recurring revenue booked in each month (bookings) and recognition, showing the accrual accounting of recurring revenue distributed over the months.
Our insights in revenue recognition is divided in Revenue and Recognition.
Revenue is the cash-flow for each month divided in recurring alone (bookings) and recurring and one-time revenue collected (billings).
For example an invoice billed in January 2023 with a yearly 1200$ of recurring revenue billed and a one-time onboarding fee of 1000$ would result in 1000$ in the bookings field for January and 2200$ in the billings field for January.
Recognition shows the accrual accounting of this same revenue, but now split and divided across each month the revenue belongs to.
For example the same invoice from before would put 1200$/12 months, 100$ across each month in the report. The non-recurring revenue would be left out completely from this calculation.
Updated about 2 months ago