INTRODUCTION
Feature Summary: The Accrual Basis preset filter on the Sales Summary report:
Allows clubs to generate reports based on service delivery dates, rather than payment dates
Applies automated revenue recognition for:
Single-service fees (e.g., reservations, lessons, drop-in events)
Multi-service fees (e.g., memberships, full registration events)
Recurring or prorated memberships
Provides an easy, pre-configured option within the Sales Summary report—no manual setup required
Use Cases: The Accrual Basis preset filter is ideal for clubs that:
Want to understand revenue based on when services are provided, not just when paid
Need reports that align with accrual-based financial tracking for accounting or business purposes
Want to compare Cash Basis vs. Accrual Basis reporting to get a complete picture of club revenue
PREREQUISITES
If you need a detailed understanding of the Sales Summary report, start here.
OVERVIEW
This article details the logic behind using a preset filter (a predefined filter option to quickly customize your report settings) for accrual-basis accounting. You can access the Preset Filter at the top of the Sales Summary report, located under TRANSACTIONS > SALES SUMMARY.
The Accrual Basis preset filter in Sales Summary Report provides clubs with greater visibility into revenue based on when services are actually delivered—not just when payments are received.
When running the report, it is essential to carefully review the date filters, as they are the primary drivers of what is included in the accrual-basis calculations.
What Is Accrual-Basis Accounting?
In simple terms, accrual-basis accounting tracks revenue based on when a service is provided, even if the payment is collected before or after that service takes place.
For example:
A player registers for a lesson happening next month—revenue is recognized when the lesson occurs, not when the player pays.
A player purchases an annual membership—revenue is spread out and recognized each month, rather than all at once at the time of purchase.
This approach can provide a more accurate picture of your revenue over time, especially for memberships, events, or recurring services.
Revenue Recognition
How Revenue is Recognized with Accrual Accounting
Scenario | When Revenue is Recognized |
Fee created before service date | On the service date |
Fee created after service date | On the service date |
Refund issued before service date | On the service date |
Refund issued after service date | On the refund date |
In the following sections, we'll break down each scenario.
Single-Service Fees
Fees that are linked to one specific service are fully recognized on the service date.
Examples include:
Membership Initiation Fees
Single Event Registrations (Drop-Ins)
Single League Registrations (Opt-Ins)
Reservations
Lessons
Point-of-Sale Fees
Miscellaneous Fees
Example: Court Reservation with Future Service Date
Booking Date: January 1
Service Date: January 15
Total Fee: $15 (paid at time of booking on January 1)
Revenue Recognition: The $15 is recognized on January 15, the date the court reservation takes place.
Multiple-Service Fees
For fees covering multiple services or dates, the total fee amount is divided evenly by the number of services given. Revenue is recognized as each service occurs.
Examples include:
Membership (Frequency)
Membership (Proration)
Event Registration (Full)
League Registration
Recurring Fees
Example: Full Registration Event with Multiple Service Dates
Total Fee: $1,200
Number of Event Dates: 12
Fee Allocation: $1,200 ÷ 12 = $100 per event date
Revenue Recognition: $100 is recognized on each event date as the service occurs.
Recurring Memberships - Definition and Examples
For recurring memberships, revenue is recognized based on a monthly schedule, depending on the billing frequency. Revenue will be recognized on the start date of the billing cycle for each month.
Revenue Recognition Logic for Memberships
Billing Frequency | Revenue Allocation |
Monthly | Full fee recognized monthly |
Quarterly | 1/3 of total fee recognized monthly |
Annually | 1/12 of total fee recognized monthly |
Custom/Prorated | Based on the number of billing periods |
Example: Annual Membership
Billing Cycle Start Date: 01/01/2025
Total Fee: $1,200
Revenue Recognized: $100 per month for 12 months on the first of each month
Example: Quarterly Membership
Billing Cycle Start Date: 01/12/2025
Total Fee: $300
Revenue Recognized: $100 per month for 3 months
In this example, the revenue would be recognized as follows:
01/12/2025: $100
02/12/2025: $100
03/12/2025: $100
Refunds - Definition and Examples
Revenue Recognition Logic for Refunds
Refund Timing | When Refund is Recognized |
Before Service Date | Refund is recognized on the service date |
After Service Date | Refund is recognized on the refund processing date |
Example: Full Registration Event
Total Fee: $1,000
10 Event Dates
Fee Allocation: $100 per event date
If the Refund Processed BEFORE Service Date(s).
Scenario:
Event runs from 6/1/2025 to 6/10/2025
Refund processed on 5/30/2025
Full $1,000 refund issued
Refund Recognition Schedule:
Since the refund was processed before any event dates occurred, the refund is recognized on each service date:
Date | Refund Recognized |
6/1/2025 | $100 |
6/2/2025 | $100 |
6/3/2025 | $100 |
6/4/2025 | $100 |
6/5/2025 | $100 |
6/6/2025 | $100 |
6/7/2025 | $100 |
6/8/2025 | $100 |
6/9/2025 | $100 |
6/10/2025 | $100 |
If the Refund Processed AFTER Service Date(s) Have Begun
Scenario:
Event runs from 6/1/2025 to 6/10/2025
Refund processed on 6/5/2025
Full $1,000 refund issued
5 event dates have already occurred
Refund Recognition Schedule:
6/5/2025: $500 refund recognized immediately
Remaining $500 refund is allocated to future dates and recognized on those service dates. To further clarify:
$100 of refund is allocated to each event date
Five event dates have already passed by the refund processing date so this portion of the refund is allocated on the refund processing date.
The remainder of the fee is allocated to event dates that have not occurred yet, so this portion of the refund is allocated on the event dates in the future.
Date | Refund Recognized |
6/5/2025 | $500 (immediate) |
6/6/2025 | $100 |
6/7/2025 | $100 |
6/8/2025 | $100 |
6/9/2025 | $100 |
6/10/2025 | $100 |