Overview

Additional cost

To access these features or settings, you must have an active subscription to either the Recurly Revenue Recognition Advanced or the Standard edition. For further information on pricing and how to enable this feature on your account, please contact your Recurly account manager directly, or reach out to us at [email protected].

Prerequisites

• Cancellation and refund policy that supports account crediting.

Limitations

• Prepayment credits can only be used for purchases and cannot be refunded.
• Goodwill credits are non-transferable and must be used within the issuing account.
• Credits may have expiration dates or usage conditions, depending on the business policy.

Definition

Recurly's Revenue Recognition Credits encompass three distinct types of credits that businesses can offer to their customers: Goodwill Credit, On-account Credit, and Prepayment Credit. Each serves a unique purpose, from enhancing revenue recognition to conducting new strategies based on your analysis.

Incorporating credits in Recurly's Revenue Recognition

You have the flexibility to incorporate credits into your revenue recognition instance or not include them.

1. Navigate to Setup → Profiles
2. Under 'Ignore Credit Event Transactions' select 'Yes' or 'No'.

Key details

Goodwill credit

Goodwill credit represents a balance added to a customer's account as an acknowledgment of their importance to the business. Utilized to address service issues, reward loyalty, or compensate for inconveniences, it plays a crucial role in maintaining positive customer relationships. Importantly, goodwill credits are seamlessly integrated into revenue recognition reports, allowing businesses to accurately reflect these balances and their potential impact on revenue.

On-account credit

On-account credit is issued in lieu of cash refunds when a customer cancels a subscription. This approach not only retains the customer's engagement by encouraging the use of credits for purchases but also facilitates the financial reporting process. By converting refunds into on-account credits, businesses can more accurately track and report these balances in their revenue recognition reports, enhancing financial transparency and insight.

Prepayment credit

Prepayment credit offers customers the option to pay in advance for services or products, benefiting both the customer for convenience and the business for financial stability. This method is integral to Recurly's revenue recognition strategy, as it ensures that prepaid amounts are accurately recorded and applied to transactions in financial statements. The systematic tracking and reporting of prepayment credits in revenue recognition reports streamline accounting processes and improve financial forecasting.