Products are what your business sells in order to generate revenue.
Adding Product Groups and Products
To begin adding a product to your Income Statement, select Add New in the upper left of your grid and then select Product.
The right snap editor will open, and you will either click on a Product Group to add the product to, or create a new Product Group by selecting Create Product Group at the bottom.
After you have created a new group or chosen an existing, you will see a list of products within that group. Select Add Product to create a new Product.
Enter the Name of your Product and select the Revenue Model. Select Recurring Revenue for products with recurring revenue streams, such as subscription based software. Select Transactional Revenue for products with transaction-based revenue streams, such as retail products.
Select Save Product to continue adding your product.
Next, you will add Pricing, Growth, and Cost information to your product.
Enter a Price for your product, and select the Subscription Period or recurrence for how often you will sell that product.
You can add any Price Changes to the product by selecting the dropdown, as well as Billing Info changes for when you charge for the product or when you recognize its revenue.
Select the Growth dropdown to continue onto adding product growth.
Enter a Starting Subscription amount, or starting quantity, as well as the Starting Month which you will start selling the product.
Growth Periods can be added by selecting the dropdown.
Enter the Growth Rate in terms of percent or subscriptions, the Frequency for how often that growth will occur to the product, and the Start Date for when the growth will go into effect.
Churn Periods can be added by selecting the dropdown.
Churn operates similar to Growth, however Churn works inversely. Every churn period you add will deduct from subscription quantity, instead of add to it.
Select the Costs dropdown to add any variable costs to your product. These are also known as Cost of Goods Sold (COGS) expenses that are directly associated with the sale of the product.
Enter the Expense Name, and the Cost in terms of either percent or a dollar amount.
Select the Apply To dropdown to choose if the cost will be associated with new subscriptions, all subscriptions, or terminating (cancelling) subscriptions.
Select the Frequency for how often the cost will occur.
To edit products, click the name of the product on the left side, and the right snap editor will open.
Edit the product as needed, and select Save Product to save any edits.
To edit the Name of a product, select the Product Category on the left side of the grid, and the list of your your products within the category will display in the right snap editor. Hover over the product you wish to edit, and click the Pencil Icon. The forms to edit your product name will appear.
To delete products, click into the name of the product on the left side and the right snap editor will open.
Select the Edit Icon in the top right, and click Delete Product.