In NetSuite, the “Revenue” KPI (Key Performance Indicator) typically calculates the total revenue generated by your business over a specified period. The specific transactions and accounts included in this calculation can vary based on your company’s setup and the specific configurations within NetSuite, but generally, it includes:
- Sales Orders: Revenue from sales orders that have been invoiced.
- Invoices: Total billed amounts from invoices.
- Cash Sales: Revenue from direct sales where the payment is received immediately.
- Credit Memos: Negative adjustments to revenue (i.e., returns or discounts provided after the sale).
Key Points About Revenue in KPI Meter:
- Date Range: The revenue is calculated for the date range you have selected in the KPI settings. Common periods include month-to-date, quarter-to-date, year-to-date, or a custom date range.
- Revenue Recognition: If your company uses revenue recognition features, the KPI may reflect recognized revenue rather than simply billed revenue, depending on how the KPI is configured.
- Filters: The KPI can be filtered by different dimensions, such as subsidiary, department, class, or location, to provide a more granular view of revenue.
- Account Mapping: The calculation depends on the accounts mapped to revenue categories in your chart of accounts. Typically, it includes accounts classified under income or revenue.
Configuring and Viewing the Revenue KPI:
- Dashboard Customization:
- Go to your dashboard.
- Click on the “Personalize” link or the “+” button to add a new portlet.
- Select the “KPI Meter” portlet and add it to your dashboard.
- Setting Up the KPI Meter:
- In the KPI Meter settings, select “Revenue” from the list of available KPIs.
- Choose the date range and any filters you want to apply (e.g., specific subsidiary, department, etc.).
- Save your settings to view the Revenue KPI Meter on your dashboard.
- Drill-Down Capabilities:
- Click on the KPI Meter to drill down into the details behind the revenue figure. This can provide you with a breakdown of the transactions contributing to the total revenue.
Understanding the Calculation:
- Invoices and Cash Sales: Sum of all invoices and cash sales within the specified period.
- Sales Orders: Only included if they have been converted to invoices or recognized as revenue (depending on your setup).
- Credit Memos: Subtracted from the total revenue, representing returns, discounts, or other negative adjustments.
Example Configuration:
- Revenue Account Mapping:
- Ensure that all revenue-related accounts are properly categorized in your chart of accounts.
- Custom KPI Definitions (if applicable):
- You can create custom KPIs if the standard “Revenue” KPI does not meet your specific needs. Go to Reports > Saved Searches > All Saved Searches > New, create a transaction saved search to define the revenue calculations, and use it as a custom KPI.