Hey all!We typically recognize revenue for our memberships at the time the revenue comes in. We have heard chatter that we may possibly need to split this revenue up over the life of the membership going forward. I have some ideas as to how to do this as we play with revenue for grants/sponsorships, but never on this scale. Does anyone else split their membership revenue this way? If so, is there an easy button for this or how do you accomplish? Any guidance helpful in case we're asked what is possible in Tessitura. Thanks so much!-Courtney
We share your interest in this topic, but, as we are still in the early days of implementation, don't have an answer nor defined approach. To complicate matters, most memberships are sold for a 12 month period, but we have some which are set for a 24 month membership. Further, for a variety of reasons, sometimes those 12 month memberships are extended to a 13th or 14th month. All of those factors seem to indicate that the accounting for this needs to occur for each specific membership sale, since each sale may contain different factors. Without a "built in" mechanism for deferred revenue and ways to trigger revenue recognition, this seems to be a daunting task, especially when a large membership base is involved.
- Bill
My Finance team is also saying we need to start recognizing 1/12th of the membership revenue over each of the months. Apparently it's a new Audit Rule - am really hoping Tessitura is already working on reports/functionality for this!!!