Settled Revenue vs Estimated Revenue

In Union, you will come across two key types of revenue when reviewing reports like registrations, replay registrations, profitability, and payroll: Estimated Revenue and Settled Revenue. Each serves a distinct purpose, helping organizations track both potential and finalized earnings for each event, performance, or replay.

You’ll notice Estimated Revenue is marked with a yellow badge and Settled Revenue is marked with a green badge in various reports.

What Is Estimated Revenue?

Estimated Revenue refers to the estimated gross revenue, including fees paid by customers, for classes or events. This amount fluctuates, especially in the case of subscriptions, where the number of registrations during a billing cycle is not known in advance.

Key Points:

Identified by a yellow badge.
Includes gross revenue, factoring in fees paid by customers.
Likely to fluctuate, especially for unlimited passes or due to admin adjustments (e.g. pass edits, registration cancellations).
For unlimited pass types (i.e. monthly subscriptions or unlimited monthly pass), the estimated revenue remains variable until the billing cycle ends, the pass expires, or is marked as used, as the number of registrations during that period can impact the final amount.

What Is Settled Revenue?

Settled Revenue represents the final, confirmed revenue that has been stamped to a specific class, performance, or replay. Having the performance, event, or replay revenue available can help with payouts (i.e. per registration payroll) and profitability reporting. Once revenue is settled, it is locked in and will no longer fluctuate. This ensures accurate reporting for teacher payouts and overall profitability.

If you are paying teachers based on a percentage of revenue, the percentage you set in your payroll rules will be based off the performance or replay settled revenue.

Key Points:

Settled revenue is indicated by a green badge.
Reflects final revenue for a specific performance or replay.
Used to calculate teacher payouts and profitability reporting.

How Does Revenue Become Settled?

Here are some common pass types and how (or when) they become settled revenue.

Drop-In Passes

For one-time purchases like drop-in classes, the registration revenue typically becomes settled within 24-48 hours of the class ending.

Class Cards (i.e. 10 Class Card)

Let’s say you sell a 10 class card for $250. Each time a student registers for a class, $25 of that pass is attributed to the class. The registration revenue typically becomes settled within 24-48 hours of the class ending and $25 will be considered settled revenue for that performance. In other words, you get the $250 upfront when the pass is sold, and each registration from the customer gradually "settles" a portion of that total, ensuring the revenue is locked in for each class they attend.

Unlimited Passes (Non Auto-Renew)

For passes (non auto-renewing) that have unlimited registrations for a set period of time, they will settle once the pass has expired. Let's compare an estimated view and a settled view from a monthly unlimited new student special where a customer pays $48.71 (including fees).

Estimated Revenue Example

This customer's pass will expire on 11/10/24. As 10/11/24, the registration revenue is marked as $2.11 because there are currently 23 registrations that the customer has made with the pass. The settled revenue may fluctuate between now and Nov. 10th due to any additional registrations the customer makes.

Settled Revenue Example

This pass settled on 9/20/24 and the customer had 9 registrations. The software was able to attribute $5.41 of settle revenue to each performance or replay the customer registered for (or attended).

Unlimited Subscription (Auto-Renew)

For unlimited subscriptions, the revenue stays estimated until the entire billing cycle ends. That’s because the total number of registrations during the period affects how much gets settled for each performance. Once the cycle ends, all the revenue gets settled. Let's compare an estimated view and a settled view from a monthly unlimited subscription where a customer pays $99 per month.