Cash Revenues
Cash revenues represent cash deposits received from normal business operations, such as customer invoice payments, interest income, and customer deposits. Transfers and equity financing are excluded.
How Cash Revenues are Calculated in Rillet
Rillet determines cash revenues by including journal entries (JE) that meet both criteria:
The Debit line is posted to an account with subtype Bank or Credit Card.
The Credit line is posted to an account with subtype:
Accounts Receivable
Other Current Asset
Other Assets
Revenue
Non-Operating Income
Customer Deposits
Once identified, the cash revenue impact is calculated as follows:
If Bank line amount < Revenue amount → Cash Revenue = Bank transaction amount.
If Revenue amount ≤ Bank transaction amount → Cash Revenue = Revenue amount.
Note: This distinction is important when using Match & Adjust for customer payments or when FX gains/losses are realized.
Cash Revenues Examples
Example 1: Customer Invoice Payment
Let’s assume you send an invoice to your customer on January 1, 2024 for $5,000. You receive the payment into your bank account on March 31, 2024.
On March 31, 2024, the payment is recorded with the following journal entry (JE):
DR: Cash $5,000
CR: Accounts Receivable $5,000
This entry clears the customer’s outstanding balance (Accounts Receivable) and increases your cash account.
Cash Revenues impact on March 31, 2024 = $5,000.
Example 2: Customer Invoice Payment with Bank Fees
Let’s assume you send an invoice to your customer on January 1, 2024 for $5,000. The customer pays on March 31, 2024, but the bank deducts a $20 wire fee.
On March 31, 2024, the payment is recorded as:
DR: Cash $4,980
DR: Bank Fees $20
CR: Accounts Receivable $5,000
Here, the invoice is fully cleared, but your bank account only increases by $4,980 because of the fee. The remaining $20 is recorded as an expense under Bank Fees.
Cash Revenues impact on March 31, 2024 = $4,980.
Example 3: Customer Invoice Payment with Realized Gain
Lets assume you send an invoice to your customer on January 1, 2024 for €4,800, equal to $5,000 USD at that time. By March 31, 2024, when the customer pays, exchange rates have changed, and you receive $5,100 USD.
On March 31, 2024, the journal entry (JE) is:
DR: Cash $5,100
DR: Realized Gain/Loss $100
CR: Accounts Receivable $5,000
In this case, the Accounts Receivable balance is cleared, and your bank receives more than expected due to currency gains. However, for Cash Revenues, the impact is capped at the invoice amount.
Cash Revenues impact on March 31, 2024 = $5,000.
Example 4: Customer Deposit
Let’s assume your customer sends you an advance deposit of $5,000 on March 31, 2024 for usage credits.
On March 31, 2024, the deposit is recorded as:
DR: Cash $5,000
CR: Customer Deposits $5,000
Here, your cash account increases, but no revenue is recognized yet because it’s an advance payment. Instead, it’s recorded as a liability under Customer Deposits. Cash Revenues impact on March 31, 2024 = $5,000.
See Also
Learn more about revenue reporting and metrics:
See Also:
Check related revenue and performance metrics:
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