This week the software development team released a software update which will reduce the chance that a member will order an item that is out of stock from your web store. It has been observed that members may place items in their cart and take a long time to check out.  When this happens, the items they placed in their cart might have already been sold to another member.

To show the member an updated store inventory, the member will be asked to refresh their current store session when the following conditions are met:

1. The member's store session has been open for more than 60 minutes.
2. There are items in the store with less than 20 orders available.

Last week’s Tip examined how revenue is recorded on an accrual basis in the Farmigo system.  This week’s Tip dives a little bit deeper and reviews how these principles are related to your members’ balances.

Your Farmigo system records revenue when it is earned in order to help you account for the way in which subscriptions are managed.  If you are accounting for a one time order, then things are pretty simple.  For instance, a customer orders an item for $5 and then pays for that item. When it comes to CSAs though, members commit to receive deliveries for a specific season or on a continual basis.  They are not placing a one-time order; they are subscribing to your program.

For subscription programs, you need to draw against that prepaid credit as the member receives each delivery.  In this case, you want to recognize payment when the goods are delivered since that is when the commitment for the "product" has been attained.

The scenarios outlined below examine how these principles are applied for a seasonal system and an ongoing system.  For help identifying how your system is set up, click here.

Read on to learn more.

This week’s tip focus on how revenue is recorded in your Farmigo system.  The Farmigo system features accounting tools so that you may track your revenue on an accrual basis. This means that income is recorded when it is earned (learn more).  Revenue is considered earned once a member’s order is delivered and recorded as received.

Revenue is realized at the time of delivery in order to account for changes that may be made to a member’s subscription between the time that they place the original order and the time that they receive their order.

Read on to learn more. (Also, check out Part II & Part III)