Net Collection is the actual revenue collected from customers after subtracting any refunds from the total transactions. It shows how much money your business has truly earned in a specific period, giving a clearer picture of cash flow and financial performance. Whereas, refunds refer to any payments made to customers for any reason from the paid susbcription amount . Net Collection helps identify the effectiveness of your revenue collection process and whether refunds are significantly impacting your income.
Net Collection is calculated using the following formula:
Net Collection = Total Transactions – Total Refunds
For example:
If your business recorded $10,000 in total transactions in a month, and $1,000 was refunded to customers, your Net Collection for the month would be $9,000.
To view your Net Collections and refunds report on your Subscription Flow account, follow these steps:
Login to SubscriptionFlow to access your admin dashboard. Then click on 'Reports' in the left-hand side panel.
You will be redirected to the Reports Page.
Next, click on ‘Net Collections and Refunds’ under the ‘Cash’ category.
This will take you to the Net Collections and refunds Report page.
Here, you can view the graph showing Net Collection and refunds over your selected date range (for this example date range was 1st of March to 31st March.
Click on the toggle sign below the chart to view the graph only for net collection or refunds.
Hover over the bars in the bar chart to get a sum of total net collection and total refunds made in the date range you have specified.
Scroll down to see a detailed tabular view of net collections and refunds each month.
Click on “Customize report” in the top right of the page, to customize reports based on a date range and to group data based on months or years.
To download the net collection data, click on ‘CSV’ at the top left corner of the table.
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