Revenue Recognition

When and how revenue is recognised across Square (POS), TryBooking (ticketing), and other sales channels.

Revenue Recognition Principle

Under Australian Accounting Standards, revenue is recognised when:

1. Performance obligation is satisfied (goods delivered or services rendered)
2. Consideration is received or receivable
3. All criteria are met

For Pride, this means:

• Bar sales (Square): Revenue recognised at point of sale (cash/card payment)
• Ticket sales (TryBooking): Revenue recognised at event date (service delivered) or at booking date (if refund-free)
• Cash sales and functions: Revenue recognised at time of payment

Square POS (Bar Sales)

Recognition timing: At point of sale (customer pays, transaction recorded)

Bank timing: Square deposits daily or batch-wise to Westpac; settlement typically same-day or next business day

Xero entry: Amaka integration auto-syncs Square transactions to Xero account SQ-200000 (Square Sales)

Discrepancies possible: If Square settlement time differs from transaction time, there may be timing differences between revenue recognition and bank deposits. Reconciliation required.

TryBooking (Ticketing)

Recognition timing: Event date (customer’s performance obligation fulfilled) or booking date (depending on refund policy)

Bank timing: TryBooking deposits to Westpac with 1–2 day clearing lag (clearing account cycle)

Xero entry: Manual entry from TryBooking reports or API integration (if enabled); current method unknown

Accounts: TBKR (GST revenue) and TBCTBD (non-GST revenue) recorded based on ticket classification

Data gap: Unclear whether revenue is recorded at booking date or event date; should align with refund policy and audit expectations.

Clearing Account Cycle

Current process:

1. Customer purchases TryBooking ticket (funds held by TryBooking)
2. TryBooking batches daily/weekly and deposits to Westpac
3. Deposit arrives 1–2 days after transaction
4. Xero reconciliation matches deposit to invoice (manual process)

Problem: Timing lag between revenue recognition (booking or event date) and bank settlement creates reconciliation complexity. If revenue is recognised at booking but money arrives at event (or after), balance sheet may show inflated receivables.

Solution: Automation Opportunities — automate TryBooking API integration to Xero, capturing deposit timing and enabling automatic reconciliation.

Other Revenue Sources

Functions and private hire: Revenue recognised at event date (service delivered)

Merchandise and ancillary: Revenue recognised at point of sale (if any)

Sponsorship and grants: Revenue recognised when entitlement criteria met (timing varies by contract)

Monthly Reconciliation

Revenue for a given month is reconciled in Xero by:

1. Listing all transactions in Square, TryBooking, and manual sales
2. Matching to bank deposits in Westpac
3. Identifying timing differences and adjusting accruals if needed

Current state: Manual process, completed monthly by Mat or bookkeeper. Timing lags and clearing account timing differences create reconciliation friction.

Multi-Currency and Forex

Currently not applicable; all transactions in AUD.

Related Pages

• Revenue Model — overall revenue structure and sources
• Clearing Account Cycle — TryBooking to Westpac settlement timing
• Financial Reporting — monthly and annual P&L reporting
• Profitability Analysis — event-level revenue attribution
• Xero — accounting system where revenue is recorded
• Automation Opportunities — TryBooking API integration for auto-reconciliation