Billing
Reports
Revenue waterfall

Revenue waterfall Beta

Learn about the revenue waterfall report.

The revenue waterfall offers unique insights into the current state of monthly revenue. You can select the month range that revenue was billed and select the month up to which monthly recognized revenue is shown.

For example, the waterfall below shows the revenue that was billed from April 2020 to May 2020 and monthly recognized revenue up to the end of June 2020:

Revenue waterfall

From the waterfall above, the total of 2,000,000 USD in revenue was billed on April 2020. Out of 2,000,000 USD, the amount of 400,000 USD was recognized in May 2020. At the end of June 2020, 1,100,000 USD has been recognized, and there was 900,000 USD not yet recognized.

Billed revenue

The Billed column in the waterfall report shows the total billed revenue by month. The billed revenue of a month is the net amount of revenue and deferred revenue booked by invoice line items, invoice items, standalone payments, and metered billing usages first appearing in that month.

Simple invoice

This example is based on the following assumptions:

  • The invoice and invoice line item is finalized on July 14, 2020.
  • The invoice line item’s amount is 31 USD, and its service period is from July 21, 2020 to Aug 20, 2020.

The revenue waterfall would look like this:

Billed Recognized As of Sep 2020
Month Total June 2020 July 2020 Aug 2020 Sep 2020 Recognized Remaining
July 2020 31 USD 11 USD 20 USD 31 USD 0 USD

Negative recognized revenue

In the revenue waterfall, the recognized revenue can be negative due to refunds, disputes, invoices marked as uncollectible, and voided invoices.

This example is based on the following assumptions:

  • The invoice and invoice line item is finalized on July 14, 2020.
  • The invoice line item’s amount is 31 USD, and its service period is from July 21, 2020 to Aug 20, 2020.
  • The invoice is voided on September 12, 2020.

The billed revenue for July 2020 would net at 0 USD, and the recognized revenue would be negative, as shown in the following revenue waterfall:

Billed Recognized As of Sep 2020
Month Total June 2020 July 2020 Aug 2020 Sep 2020 Recognized Remaining
July 2020 0 USD 11 USD 20 USD -31 USD 0 USD 0 USD

Billed revenue does not include tax

The invoice’s total amount does not necessarily equal to the billed revenue because of tax.

This example is based on the following assumptions:

  • The invoice and invoice line item is finalized on July 14, 2020
  • The invoice line item’s amount is 35 USD, and its service period is from July 21, 2020 to Aug 20, 2020
  • The invoice line item’s tax is 4 USD (inclusively)

Even though the invoice’s total amount is 35 USD, the billed revenue would be 31 USD because the tax is 4 USD, as shown in the following revenue waterfall:

Billed Recognized As of Sep 2020
Month Total June 2020 July 2020 Aug 2020 Sep 2020 Recognized Remaining
July 2020 31 USD 11 USD 20 USD 31 USD 0 USD

The invoice’s due amount is not billed revenue

The invoice’s due amount does not necessarily equal to the billed revenue because an invoice can be paid with customer balance.

This example is based on the following assumptions:

  • The invoice and invoice line item is finalized on July 14, 2020.
  • The invoice line item’s amount is 31 USD, and its service period is from July 21, 2020 to Aug 20, 2020.
  • The invoice is partially paid by customer balance for 10 USD.

Even though the invoice’s due amount is 21 USD, the billed revenue would still be 31 USD, as shown in the following revenue waterfall:

Billed Recognized As of Sep 2020
Month Total June 2020 July 2020 Aug 2020 Sep 2020 Recognized Remaining
July 2020 31 USD 11 USD 20 USD 31 USD 0 USD

Invoice item

Invoice items are created automatically during upgrade and downgrade to represent the unused time of the previous plan and the remaining time of the new plan. Invoice items can also be created manually.

Billed revenue includes the revenue of an invoice item in the month that the invoice item first appears.

This example is based on the following assumptions:

  • The invoice item is created on May 14, 2020.
  • The invoice item’s amount is 31 USD, and its service period is from May 14, 2020 to June 13, 2020.
Billed Recognized As of Jul 2020
Month Total Apr 2020 May 2020 Jun 2020 Jul 2020 Recognized Remaining
May 2020 31 USD 18 USD 13 USD 31 USD 0 USD

Continuing on this example, on Jun 19, 2020, we create an invoice, roll the above invoice item to the invoice, and create one more line item with the following assumptions:

  • The invoice line item’s amount is 62 USD.
  • The invoice line item’s service period is from Jun 21, 2020 to Jul 20, 2020.

The invoice contains 2 invoice line items. One is the invoice item created in May. The other is the invoice line item created on June 19, 2020. The invoice’s total amount is 93 USD.

The revenue waterfall would look like this:

Billed Recognized As of Jul 2020
Month Total Apr 2020 May 2020 Jun 2020 Jul 2020 Recognized Remaining
May 2020 31 USD 18 USD 13 USD 31 USD 0 USD
Jun 2020 62 USD 22 USD 40 USD 62 USD 0 USD

Metered billing

This example is based on the following assumptions:

  • 1 unit costs 10 USD.
  • 3 units are recorded in June 2020.
  • 2 units are recorded in July 2020.
  • An invoice is finalized on July 15, 2020, in order to invoice 5 units.

The revenue waterfall would look like this:

Billed Recognized As of Jul 2020
Month Total June 2020 July 2020 Recognized Remaining
Jun 2020 30 USD 30 USD 30 USD 0 USD
July 2020 20 USD 20 USD 20 USD 0 USD
Was this page helpful?
Questions? Contact us.
Developer tutorials on YouTube.