Report Overview
What it shows:
A monthly breakdown of each patient’s billed charge, detailing:
Recognized revenue (earned based on services delivered)
Deferred revenue (remaining balance to be earned over time)
Why it matters:
This report helps you track how revenue flows from initial billing to recognition over the service period—aligning with accrual accounting and providing clarity into when revenue is truly earned.
Report Filters
Choose the desired Revenue Period by hovering over the three dots and selecting the time frame.
Choose which charges by filtering the 'Charge' or ‘Category’ columns to only include those related to memberships or other charges.
Choose to show all revenue or just deferred revenue.
When the Is Deferred filter at the top of the report is set to true, the report returns all line items where the service end date is at least one month after the service start date. When set to true and false, the report returns all line items, including one time charges or line items with an end date in the same month as the start date.
How to Read the Report
The example below has a charge of $100 with a service start date of 6/12/24 and a service end date of 7/11/24:
For the revenue period of June 2024:
A service start date of 6/12/24 allows for 19 days of recognized revenue in the month of June from June 19 - June 30 or 63.3% of the month (19 days / 30 days in June).
the charge of $100.00 * 63.3% of the month of June = $63.33 recognized revenue in the current period and $36.67 revenue deferred in the current period. There is no revenue recognized from a past deferral since the service period started in the revenue period.
For the revenue period of July 2024:
The $36.67 revenue deferred from June appears as Revenue Recognized from Deferral.
The service is ending in the month so there is no revenue recognized in the current period and no more to be deferred in the current period.
Column Data
Days of Recognized Revenue: The number of days of recognized revenue in the month.
For example, if the service start date is July 28, then there are 4 days of recognized revenue for July: July 28, 29, 30 & 31.
Charge Total: The full amount billed for the charge, regardless of whether it has been paid.
Recognized Revenue
Deferral Outstanding: The remaining deferred balance for the charge within the current revenue period (i.e., what still needs to be recognized in the future).
Revenue Recognized Current Period: The portion of revenue earned in the same period the charge was billed. (i.e., the transaction date falls within the revenue period).
Revenue Recognized from Deferral: The portion of revenue earned from charges that were deferred in a previous revenue period (i.e., transaction date is before the revenue period; deferred revenue now being earned).
Revenue Deferred Current Period: The amount from charges billed this period that is not yet recognized and will be deferred to future periods (i.e., Charge Total - Revenue Recognized Current Period where transaction date is within revenue period).
Revenue Period: Monthly timeframe.
Transaction Date: The bill date of the charge.
Service Start Date & Service End Date: The period of service the charge covers—used to determine the revenue recognition schedule. Hint’s billing system assigns service dates to every invoice line item, which determine when revenue is earned. They are independent of when the invoice is sent or paid:
Here’s how service dates are assigned to charges in the Hint system:
One-time charges (e.g., registration fees) have a single service start date.
Membership charges (e.g., monthly or annual fees) include both a start and end date
For customer-generated invoices, the system calculates an end date based on the start date entered by the customer and whether the unit is “day”, “month”, or “year”
For system-generated invoices, Membership charges include start and end dates based on the membership period. Example: An annual membership starting Jan 1, 2025, will have a service end date of Dec 31, 2025.
Revenue Walk Calculation
The Revenue Walk helps reconcile how deferred revenue changes from one month to the next. It follows this formula:
Deferral Outstanding (Current Month) = Deferral Outstanding (Prior Month) + Revenue Deferred Current Period – Revenue Recognized From Deferral
Handling Refunds
If a refund does not alter the invoice (e.g. refund from their credit card so that it can be paid via HSA), it won’t impact recognized revenue or the report.
If a refund changes the invoice (e.g. voided), a new entry appears in the report with a transaction date of when the refund was entered. In these cases, revenue is adjusted as follows:
If the refund is in the same month, recognized revenue for that month is reduced.
If the refund applies to prior months, negative revenue entries are created to reverse recognition.
Known Limitations
Recognition Based on Dates Only
Revenue is recognized based on service dates, not events like shipping date.
Manual adjustments are needed if revenue should be earned unevenly across a service period.
For example, a $120 annual membership is distributed equally as $10 per month for a year. If you wish to recognize $65 for the initial visit and then $5 monthly thereafter, that will need to be calculated manually.
Day-Based Proration Only
Revenue is prorated by day, not by month.
For example: February (28 days) will show less revenue than March (31 days). If you prefer equal monthly recognition (1/12 each month), that will need to be calculated manually.
Monthly memberships starting mid-month will be partially earned (pro-rated to the # of days in that month) and partially deferred (pro-rated to the # of days in the next month).
Deleted Provider and Location Assignments
The report lists the active provider and location on the invoice. In cases where the provider or location has been deleted after the invoice was issued, the report will display the location or provider currently assigned to whichever patient is on the invoice.
Invoice Edits May Affect Past Reports
Editing service dates on an existing invoice can retroactively change past reports, which may lead to inaccuracies.
This is rare (<0.04% of revenue), but to prevent it, avoid editing service dates after the month end. Instead, void the original line and issue a new invoice with the correct service dates and amount.
For example:
Original: $120 annual charge on Jan 1 with ~$10 recognized each month.
In June, the line is edited to be a 6-month $60 charge.
Changes in the report:
Correctly reverses June to now realize the $60 amount
Incorrectly alters data from January, which should remain unchanged