How to use Revenue Types in VOGSY

VOGSY utilizes revenue types as a powerful tool to categorize and track different streams of income, significantly enhancing the depth and clarity of financial reporting and charting. By linking revenue types to specific project deliverables, businesses can gain granular insights into their financial performance, enabling more informed strategic decisions.

At its core, a revenue type in VOGSY is linked to each project deliverable. This association is crucial as it dictates how revenue and associated costs for that specific deliverable are recognized and posted to the general ledger. When configuring revenue types, businesses define the specific ledger accounts for:

• Revenue postings

• Coverage postings

• Cost price postings

• Work-in-progress (WIP) postings

• Periodical valuation of WIP and results

This setup ensures that every financial transaction related to a deliverable is automatically allocated to the correct account based on its designated revenue type. VOGSY provides a default revenue type to simplify initial setup, but creating multiple, distinct revenue types is key to unlocking more detailed financial analysis.

The strategic use of revenue types directly feeds into VOGSY's reporting and charting capabilities, offering several advantages:

• Detailed Profit & Loss (P&L) Statements: By segregating revenue and costs into different ledger accounts based on revenue types, businesses can generate P&L statements that clearly break down profitability by each revenue stream. This allows for a better understanding of which services or product categories are driving profit — or loss.

• Revenue Forecast Chart: VOGSY's "Revenue forecast" chart provides a visual representation of potential and actual revenue, incorporating data from the sales pipeline and active projects. Crucially, if a business has configured two or more revenue types, this chart can be filtered by revenue type. This enables stakeholders to analyze the forecast, pipeline, unplanned and planned order book, and actual revenue specifically for each defined revenue stream.

• Financial Key Performance Indicators (KPIs): Because revenue is booked to distinct ledger accounts per revenue type, financial KPIs can be reported on separately for each stream. This allows for tailored tracking of performance metrics relevant to different parts of the business. For example, you can monitor gross profit margin for "Consulting Services" independently from "Software Licenses."

• Slice and Dice Data: Revenue types are critical for organizing business data. This allows for more effective "slicing and dicing" of information by country, department, time period, and customer segment

In essence, revenue types in VOGSY empower businesses to move beyond a monolithic view of their income. By categorizing revenue at the deliverable level and configuring corresponding accounting rules, organizations can achieve a more nuanced understanding of their financial health, identify trends within specific revenue streams, and make data-driven decisions to optimize profitability and growth. This detailed financial visibility is particularly valuable for professional services firms managing diverse project portfolios and service offerings.