How to set up revenue types in VOGSY
Slice and dice with revenue types
One of the primary functions of VOGSY is to organize your business data effectively. Organizing the data along different dimensions is crucial for extracting meaningful insights and making informed decisions.
The most common and valuable dimensions are countries, departments, time, customer segments, and revenue streams.
For the dimension revenue streams, VOGSY has the master table "revenue types."
You associate a revenue type for each project deliverable, thereby ensuring that all revenue (and costs) from this deliverable are reported in that revenue type.
To make it easy to start with VOGSY, you will have one revenue type available by default for each project deliverable.
Later, when the need arises to create the reporting dimension of revenue streams, you can always create more revenue types.
Set up project accounting per revenue type
Combining revenue streams and project accounting in your P&L (Profit and Loss) statement requires careful organization and allocation to ensure accurate financial reporting.
The first step is setting up ledger accounts.
Project Revenue Accounts: Create separate revenue accounts for each distinct revenue stream within a project (e.g., product sales, service fees, license fees). You can now track performance by revenue type.
Project Expense Accounts: Set up expense accounts to categorize project costs (e.g., labor, materials, subcontractors, travel). Use a coding system that allows you to identify expenses related to specific projects or tasks easily.
Per revenue type, the following accounts can be defined per invoicing method (Time & Material, Fixed Price, and Subscriptions):
Ledger accounts for revenue postings
Ledger accounts for coverage postings
Ledger accounts for cost price postings
Ledger accounts for work-in-progress postings
Ledger accounts for periodical valuation work-in-progress and results.
VOGSY has a set of default ledger accounts filled in with the default revenue type, which makes starting with VOGSY easy.
In VOGSY, the "Ledger Accounts" function allows you to create more ledger accounts for your revenue types.