Revenue recognition and forecasting

Revenue forecasting helps you make wise and strategic decisions about the future of your company. You can plan your company’s finances more effectively, assess growth potential, set realistic targets, and anticipate periods of high or low revenue to allocate resources accordingly. Scoro gives you total manual control over revenue recognition so you can be extra precise with committing and forecasting revenue.

Revenue recognition on a project level

Revenue recognition and forecasting happens on a project level. To manually recognize revenue, navigate to the Budget tab in your project view and open the Revenue section. 

If you’ve set up a monetary budget for your project, Scoro will already suggest some initial numbers for you based on even distribution logic. The suggested numbers are presented in grey and act as placeholders. These are not saved or reported anywhere. To recognize revenue, simply fill in the fields manually with actual committed or forecasted sums. Whenever you fill out a field, Scoro will automatically redistribute the leftover budget between the empty fields and update the placeholder numbers.

• At completion, the column keeps track of the total recognized sum. All manually filled-in fields are simply summed up.
• Quoted or Budgeted column reflects the quoted or budgeted total. This number is affected by the Include bills and expenses in revenue toggle, which you can switch on or off if the project modify view:
  • If the toggle is enabled, i.e., you consider pass-through costs as revenue as well:
    • Quoted column = the quoted total (after discount, before tax)
    • Budgeted column =  the budgeted total
  • If the toggle is disabled, i.e., you don’t consider pass-through costs as revenue:
    • Quoted column = the quoted total (after discount, before tax) – the cost of the outsourced services (based on the cost info in the “Cost and provider info” section on the quote)
    • Budgeted column = the budgeted total – the estimated external costs (bills + expenses)
• Difference column shows you the difference between the quoted/budgeted sum and the currently recognized total. A negative number in red indicates you’ve recognized less than you’ve quoted/budgeted.

Note that you may not see all of these columns since the view in the Revenue tab varies depending on how you’ve set up the project and the budget.

1. If the project is created from a quote…
   Scoro will distribute the quoted amount equally across the months and suggest some initial numbers for you based on that. As you start filling in the fields, Scoro will compare the entered sums against the Quoted total to help you keep track of the difference.
   
2. If the project is created from scratch and the budget is set manually…
   Scoro will distribute the budgeted amount equally across the months and suggest some initial numbers for you based on that. As you start filling in the fields, Scoro will compare the entered sums against the Budgeted total to help you keep track of the difference.
   
   
3. If the project is created from scratch and no budget is set…
   If you haven’t set up a monetary budget for the project, your Revenue tab will simply show empty fields, which you can fill out as you see fit. The entered sums won’t be compared against any quoted or budgeted numbers; Scoro will just track the recognized total.
   
   

Number of periods

If your project has a start date but no end date, you only see a single month under the Revenue tab as Scoro doesn’t know how long the project will run. As soon as you assign an end date, Scoro will create a separate field for each month, so you could recongie revenue monthly.

Periods always start from the month of the project's start date and end with the month of the project's end date. However, if there are tasks, events, or time entries scheduled beyond the project's end date, the periods extend accordingly.

Revenue report

This project-level revenue data feeds into a Revenue report, which you can find under Reports > Financial reports. The report tracks manually recognized revenue across all projects, month by month, to provide quick insights into your company’s financial outlook.